John Laing sees single-digit fall in NAV from Covid-19
By Frank Prenesti
Date: Wednesday 01 Jul 2020
(Sharecast News) - John Laing said first half net asset value before deducting dividends was expected to show a single digit decline as investment activity was hampered by the coronavirus lockdown.
The infrastructure builder on Wednesday said a number of bids relating to public procurement processes had been delayed from 2020 into 2021 due to Covid-19, adding that it expected government to use public works projects as economic stimulus to drive a post-pandemic recovery.
"External factors, including the exceptional impact of Covid-19 and reductions in power price forecasts, have more than offset the underlying portfolio performance and gains from foreign exchange," the company said.
The company said it has sold five assets, generating total proceeds of around £90m and its balance sheet and liquidity position remained strong, with financial resources of £320m available as at June 18.
"We have also been impacted by the reduction in power prices through our renewable energy assets which represent 34% of total portfolio value," Laing said.
"As a result of the pandemic, demand for electricity has fallen and the power price forecasts received during the period show material reductions both in the short and in the long term."
"Off-take arrangements, in place for most of our renewable assets, have provided some protection against short-term volatility. However, we expect a negative impact from lower power prices across all regions."
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