Renewables Infrastructure net asset value hurt by power price forecast

Renewables Infrastructure Group Ltd on Friday noted a ‘significant’ reduction in medium-term power price forecasts, reducing its net asset value, as it announced an interim pretax loss.

The Guernsey-based renewable energy investment company said NAV per share at June 30 was 108.2p, down 6.6% from 115.9p at December 31.

The company said this was due to a significant reduction in medium to long term power price forecasts, dominated by a reduction in the growth of electricity demand by one of three forecasters.

Renewables Infrastructure also noted weak demand from Asian markets for liquefied natural gas.

‘The impact of gas price weakness on power was partially offset in the UK following confirmation of the linking of the EU and UK Emissions Trading Schemes providing support to UK carbon prices. European gas and power price action is expected to remain volatile in the near-term, due to uncertainty over the scope, timing and duration of US reciprocal tariffs, and continuing tensions in the Middle East,’ the firm said.

Renewables Infrastructure reported a pretax loss of £113.8 million for the first half of 2025, widened from £15.8 million a year before, as its total operating loss stretched to £94.9 million from £43.2 million.

Finance and other expenses totalled £17.2 million during the first half, against income of £28.8 million a year earlier.

Loss per share widened to 4.7 pence from 0.6p.

Generation during the first half was 10% below budget, the company said, as a result of ‘poor wind resource’.

Chair Richard Morse said: ‘Of fundamental importance for investment companies to succeed in this uncertain environment is a close attention to risk management, with diversification and scale being important components, and the execution of a growth strategy, to provide the risk and reward balance that shareholders seek.’

He added: ‘TRIG is already well placed and the board and managers are committed to furthering these fundamentals to provide resilient and attractive returns to our investors.’

The company reaffirmed its full-year dividend guidance of 7.55p per share, which would be up 1.1% from 7.47p in 2024.

Renewables Infrastructure shares were up 0.2% at 81.85 pence on Friday morning in London.

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