Investment firm The Renewables Infrastructure Group (TRIG) reported pre-tax profits of £100m in 2020, down from £162m the previous year.
Earnings per share also fell to 5.9p, compared to 11.9p in 2019: 11.4p.
TRIG said that, while the Covid-19 pandemic has affected all markets, it has had differing impacts on each European country where it has an investment.
For example, average power demand since 1 April 2020 compared to “business as usual” has ranged from 2% less in Sweden to 6% less in the UK, with even greater short-term variability, according to the board.
Cash received from the portfolio by way of distributions rose to £148m (2019: £129m).
Cash receipts were affected by lower power prices, caused by the Covid-19-related restrictions reducing energy demand.
However, the potential impact was largely mitigated as the majority of asset-level revenues in the year were linked to fixed electricity pricing or subsidies.
TRIG’s he portfolio was valued at £2,213m as at 31 December 2020 (2019: £1,745m), with significant growth in the portfolio following investment activities and fundraising in the year.
Valuation gains were buoyed by on-going demand for the asset class resulting in a reduction in valuation discount rates, as well as the managers’ portfolio and asset-level initiatives.
However, gains were dampened by the reduction in power price forecasts across the geographies in which TRIG invests.
TRIG continued to be acquisitive and the portfolio continued to grow with investments totalling £588m made and disposals of £118m in 2020.
Investments were funded by a combination of the proceeds of equity fundraisings and cash reserves including the reinvestment of surplus cash generated from the Company’s portfolio.
At 31 December 2020, the Company was drawn £40m under its renewed, three-year ESG-linked £500m revolving credit facility.
TRIG has current investment commitments of £392m, of which £313m are expected to fall due by the end of H1 2021, including the completion of the Beatrice offshore wind farm (pictured) acquisition and investments into construction projects (Blary Hill and Grönhult onshore wind farms).
Chairman Helen Mahy said: “I am pleased that in light of the Covid-19 backdrop, TRIG’s financial performance has been resilient, including an increase in the Company’s NAV per share, underpinned by a diversified portfolio and robust operational performance.
“The Board and I appreciate the performance of InfraRed, RES and our supply chain in what has been a challenging year.
“My fellow directors and I remain grateful for the support of TRIG’s shareholders as demonstrated through two oversubscribed fundraisings in which the Company raised £320m, providing further economies of scale.
“2021 is a pivotal year for the climate change agenda.
“We expect to see significant development of public policy in respect of decarbonisation of energy supply, renewables-supporting grid infrastructure and electrification of energy systems across TRIG’s target markets in the run up to COP26.”