The Renewables Infrastructure Group LON: TRIG reported interim results for 2026 that showed resilient operational cash generation and dividend coverage despite a decline in net asset value, as lower medium-term power-price and renewable-certificate forecasts weighed on portfolio valuations.
Managing Director Minesh Shah said the European renewables sector had seen more supportive conditions during the first half, including stronger U.K. wind speeds, higher power prices in the U.K. and Sweden, and an improving market for asset transactions. However, he said elevated long-term interest rates continued to restrain the company’s share-price recovery.
TRIG reported net asset value of 101.1p per share at June 30, with a portfolio value of £2.817 billion. CFO Phil George said NAV declined principally because third-party forecasts for medium-term power prices and revenue from renewable electricity certificates were lower. Higher near-term power-price forwards and active portfolio-management initiatives provided a partial offset.
Dividend Coverage and Balance Sheet
The board reaffirmed its 2026 dividend target of 7.55p per share, which management said represented a roughly 10% cash yield based on the share price cited during the presentation. Operational cash generation totaled £209 million in the first half.
Gross dividend cover was 2.3 times for the period, while net dividend cover was 1.1 times after £111 million of project-level debt repayments. Shah said the company expects to maintain net cover at that level for the full year and sees potential for improvement over the medium term as battery and repowering projects enter operation.
TRIG’s revolving credit facility balance fell by £122 million during the half to £276 million. The company used dividend cash flow in excess of 1.0 times cover and proceeds from a £200 million private placement completed in February to reduce the balance, while also investing £49 million in construction projects and spending £38 million on share buybacks.
The signed sale of the Beatrice offshore wind farm is expected to generate £155 million of proceeds in the second half. George said that transaction would reduce the revolving credit facility to £121 million, while management expects the balance to move toward £100 million by year-end through additional disposals, cash flow and capital allocation actions.
Following the Beatrice disposal, project-level gearing is expected to be 34%, while long-term gearing as a percentage of enterprise value is expected to be 39%. The company said most of its borrowings are long-term, fixed-rate and amortizing, limiting interest-rate and refinancing risk.
Capital Recycling and Portfolio Changes
TRIG is targeting £400 million of capital realizations over the 12 months to May 2027. Shah said the Beatrice sale represented an “excellent start” toward that target, with other sale processes under way. He said the company had allocated more than 60% of available capital to shareholder returns in the first half, including buybacks, though that emphasis is expected to moderate as disposal proceeds are used to reduce revolving-credit borrowings.
Management described the Beatrice sale as a portfolio-risk-management decision rather than a transaction driven by an attractive price. Shah said the asset’s location off the north coast of Scotland was a consideration, as the U.K. government has indicated that it wants more generation located closer to demand. The sale was agreed at a small discount to NAV, which management attributed to asset-specific factors.
The disposal will also alter TRIG’s technology mix. Wind is expected to account for 78% of the portfolio, while solar and batteries are expected to represent 14% and 8%, respectively. The company said it continues to pursue sales of wind assets and has a significant battery-development pipeline.
Power Prices, Valuation and Revenue Fixing
TRIG’s power-price forecasts increased for the current year and 2027, reflecting the Middle East conflict, but declined from around the third year for approximately five years. George said the lower medium-term outlook reflected expectations for increased U.S. liquefied natural gas exports, which could lower European gas-import and power prices, as well as greater renewable build-out in Germany and Spain.
The company uses the average of forecasts from three mainstream providers, adjusted for the lower prices renewable generators can receive when generation is abundant, a phenomenon known as cannibalization. TRIG said it had not changed portfolio discount rates during the half. Its weighted average discount rate increased by 0.1 percentage point to 9.1% due to portfolio movements.
George said that, if the valuation were updated using power-price forecasts after the June reporting date, NAV could be up to 1p higher because of increased near-term prices. He added that higher U.K. government bond yields could affect asset-market pricing if sustained; a 25-basis-point increase in U.K. discount rates would reduce NAV per share by about 0.8p.
The company said 78% of forecast revenue is fixed per megawatt-hour for the next 12 months and 64% is fixed over the next decade. Shah also said TRIG had added a seven-year contract for the Gode offshore wind farm, providing fixed revenue initially and a higher floor price thereafter.
Operations and Construction Pipeline
TRIG generated 2.9 terawatt-hours of electricity in the first half, equivalent to powering 1.6 million homes, according to COO Chris Sweetman. The company said generation was 3% below budget, but above-budget electricity prices, particularly in the U.K. and Sweden, helped revenue remain in line with its financial budget.
TRIG has about 200 megawatts under construction. Its 78-megawatt Ryton battery project and 25-megawatt Cooksony repowering are on track for energization by the end of 2026, while construction has begun on the 99-megawatt, two-hour Spennymoor battery project. Sweetman said Spennymoor’s expected capital expenditure was around £0.5 million per megawatt, with variation depending on project characteristics.
Management said it has more than 150 megawatts of projects that could reach final investment decisions in the second half, including further French repowerings, Spanish co-located batteries and U.K. greenfield battery projects. In Spain, Shah said co-located batteries could benefit from the spread between lower daytime solar prices and higher evening prices.
TRIG also highlighted operational enhancements at its Hill of Tarvit wind farm in Scotland, where a lidar-based turbine coordination system delivered a 0.7% energy-yield increase. That followed a prior 5% improvement from blade hardware and control-parameter upgrades.
About The Renewables Infrastructure Group (LON:TRIG)
TRIG was one of the first investment companies investing in renewable energy infrastructure projects listed on the London Stock Exchange.
TRIG completed its IPO in 2013 raising £300m and is a member of the FTSE250 index. The Company develops, constructs and operates a portfolio of renewable energy infrastructure that creates value for its shareholders and generates secure, clean electricity that benefits both society and the environment.
The Company's diversified portfolio includes onshore and offshore wind farms, solar parks and battery storage projects in the UK and mainland Europe.
TRIG's strategy is focused on delivering capital growth and attractive, income-based returns supported by strong cash generation and a positive link to inflation.
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