Octopus Renewables ups dividend guidance, but NAV falls
By Benjamin Chiou
Date: Friday 31 Jan 2025
(Sharecast News) - Octopus Renewables Infrastructure Trust reported a slight fall in net asset value (NAV) for the fourth quarter on Friday, but increased its dividend guidance for 2025.
The company, which invests in a portfolio of renewable energy assets in Europe and Australia, said NAV as of 31 December totalled £570.4m or 102.65p per share, down from £582.7m of 103.77p three months earlier.
Power prices and green certificates resulted in a £2.6m valuation decrease, though the company expressed that its portfolio is "well-shielded" from short-term power price fluctuations, with a significant proportion of revenues having already been being secured through fixed or contracted agreements.
Also weighing on NAV was a £2.4m reduction in the valuation of ORIT's development stage assets, a £8.4m negative impact from the payment of a dividend in the third quarter, along with the negative impact from operating costs and net adjustments.
On the other hand, inflation, foreign exchange, share buybacks and expected portfolio returns all had positive impacts on NAV.
ORIT declared a 1.51p-per-share dividend payment in respect of the fourth quarter, meaning that it will have paid out 6.02p per share in total for the 2024 financial year, up from 5.79p in 2023, which is fully covered by cash flows.
In line with its policy, the board said it was increasing its target dividend for 2025 to 6.17p, up 2.5% in line with inflation.
"We are [...] pleased to announce, for the fourth consecutive year in a row, an increase in dividend guidance in line with inflation. This is expected to be fully covered by operating cash flows and demonstrates our commitment to a progressive dividend policy," said ORIT's chair Phil Austin.
The stock was down 1% at 66.91p per share in early deals on Friday.
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