Greencoat UK Wind announces net asset value of 133.5 pence per share, electricity price pressure emerges

Investing.com – Greencoat UK Wind PLC (LON:UKW) announced on Thursday that as of December 31, 2025, its net asset value per share is 133.5 pence, with an annual total return of -4.9%.

This net asset value includes the impact of subsidy RPI/CPI re-benchmarking adjustments, which is lower than the previously reported 136.1 pence that did not include this adjustment. The company’s share price is currently 93.45 pence, trading at a 29.8% discount to NAV.

Since the share price has traded at a discount of over 10% during the reporting year, the company will hold a vote on its continued existence at the upcoming annual general meeting.

The negative performance in the fourth quarter was mainly driven by electricity prices, which caused NAV to decline by 2.4%. This was followed by a 0.9% decrease due to SPV budget updates, a 0.4% decline from recent lower inflation, and a 0.3% reduction from decreased capital allowances in the autumn budget.

Annual generation was 8.5% below budget, primarily due to insufficient wind resources in the first half of the year. The realized average electricity price was £70 per MWh, a 13% discount to the N2EX index average price of £80.7 per MWh. Portfolio availability met expectations.

The company recently reached an agreement to lock in electricity prices for approximately 150 GWh of offshore wind annual output for two years. More fixed-price arrangements are expected to be completed throughout 2026, but the fund will still maintain significant market price exposure.

Full-year net cash generation was £291 million, with a dividend cover of 1.3 times, unchanged from 2024. Guidance for 2026 indicates a dividend cover of 1.7 times, although the forecasted dividend cover from 2026 to 2028 is about 0.1 times lower than mid-term disclosures, likely reflecting lower electricity prices and the RPI/CPI re-benchmarking adjustments of subsidies.

This earnings announcement did not include any new asset disposals, but further asset divestments remain a priority for capital allocation in 2026. Proceeds from asset sales and excess cash generation are expected to be used to reduce leverage, continue share buybacks, and support disciplined reinvestment.

As of December 31, 2025, the company held £171 million in cash (including cash at the SPV level), with total debt of £2.126 billion, representing 42.5% of total asset value, of which £230 million is drawn on revolving credit facilities.

By year-end, the company had completed £199 million in share buybacks, and after the year-end, an additional £2 million worth of shares were repurchased, exceeding the overall commitment of £200 million.

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