Aquila European Renewables PLC on Friday remained optimistic of improvements in the second half of the year, as it expects to benefit from a number of positive economic tailwinds.
The London-based investment company reported net asset value per share as at June 30 of 88.7 cents. Net asset value total return per ordinary share came to negative 7.1%.
Additionally, Aquila European said it was aiming for a 5% increase to its dividend this year to 5.79 cents per share. To date, it has paid or declared dividends of 2.9 cents per share, in line with this target.
Reflecting on the period, Chair Ian Nolan said that negative movement in the NAV was primarily driven ‘by a decrease in short-term power price forecasts across the majority of the portfolio in the first quarter of the year’.
Looking ahead, Nolan expects the ‘challenging macro-economic backdrop’ to improve in the second half of the year, as the company is set to benefit from a number of positive tailwinds.
These tailwinds include the increased likelihood of central bank interest rate cuts, as well as market consensus that inflation in the European Union should gradually recede towards the European Central Bank’s inflation target of 2.0%.
Separately on Friday, Aquila said it has completed the sale of its near 26% interest in Tesla, a 150 megawatt wind farm in southern Norway, to Sunnhordland Kraftlag AS for €27.0 million.
The sale represents a premium of €2.6 million above the valuation of the interest in Aquila’s net asset value at the end of the second quarter.
Proceeds will be primarily used to fully repay the remaining drawn balance of €26.1 million outstanding under the company’s revolving credit facility, excluding existing bank guarantees outstanding of €2.8 million.
Shares in Aquila European Renewables were trading 4.7% lower at 55.10 pence each in London on Friday afternoon.
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