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Octopus Renewables Infrastructure Trust PLC on Wednesday said it is benefiting from government-support schemes from several European countries, as they move more towards renewable energy following Russia's attack on Ukraine.
Octopus is a London-based investment company focused on renewable energy.
Net asset value rose 8.6% to 111.08 pence per share at June 30 from 102.26p at December 31, 2021. NAV total return improved to 11% in the half-year to June 30 compared to 1.4% a year ago.
‘The company has seen NAV growth during the period, primarily driven by increased power prices and near-term inflation assumptions,’ Octopus explained. It added that it ‘has sought to manage power price volatility by entering into new short-term fixes’.
The firm raised its 2022 target dividend by 4.8% to 5.24p from 5.00p it paid for 2021.
Looking ahead, Octopus said: ‘In the longer term, it remains clear that to help ensure there isn't a repeat of the current energy crisis, accelerated investment in new renewable generation is essential. As such the tailwinds behind the sector and the company remain strong. The company benefits from significant levels of inflation protection via revenues from government support schemes in the UK, France and Poland.’
Citing Russia's war against Ukraine, Octopus said: ‘The company has certain assets in EU and/or NATO countries neighbouring Russia and Ukraine and an escalation of the crisis could adversely affect the NAV of the company and the value and returns of the company's portfolio of asset.’
Octopus said it does not expect power price caps for renewables in the EU to have a material impact on its future revenue or valuation.
Octopus Renewables shares were 1.9% lower at 101.60 pence each in London on Wednesday morning.
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