TRIG Navigates Wind Shortfall, Reaffirms Dividend

The Renewables Infrastructure Group (TRIG) released its interim H1 results today, revealing a mixed performance amidst challenging conditions.

While the company generated a robust £199 million in operational cash, headwinds from lower-than-expected wind resources in key European markets and reduced power price forecasts have impacted its net asset value (NAV).

Despite these challenges, TRIG reaffirmed its commitment to its dividend guidance, signaling confidence in its underlying portfolio and strategic initiatives.

TRIG shares are trading flat on the day at 81.70p, with a 9%+ pullback from recent highs at the end of July leaving the price 5.7% down YTD.

The company's generation during the first half of the year was 10% below budget, attributed to poor wind conditions across the UK, France, and Germany.

This shortfall impacted dividend cover, which stood at 1.0x for the period, compared to 1.1x in the same period last year. The Board has reaffirmed its dividend guidance of 7.55p per share for the full year 2025, providing reassurance to income-focused investors.

TRIG's balance sheet remains robust, supported by amortizing and fixed-interest-rate debt, minimizing exposure to interest rate fluctuations and refinancing risks. A significant 81% of forecast revenues for the next 12 months are secured at fixed prices per unit of electricity generated, providing revenue visibility and shielding the company from short-term power price volatility.

Recognizing the undervaluation implied by the share price discount to NAV, TRIG continued its share buyback program, repurchasing 80 million shares for £67 million. This initiative has added 0.6p to the Company's NAV per share in the period to 30 June 2025, demonstrating management's commitment to enhancing shareholder value.

Strategic Initiatives and Growth

TRIG's diversified portfolio generated 2.7 TWh of clean electricity during the period, equivalent to displacing 0.9 million tonnes of carbon emissions. The company is actively expanding its portfolio with strategic investments in battery storage projects. The construction of the 78MW two-hour Ryton battery storage project in the UK remains on track and within budget, with energisation expected by the end of the year.

Furthermore, the 100MW two-hour Spennymoor battery storage project is being prepared for a final investment decision in the third quarter of 2025. These projects are expected to enhance TRIG's revenue streams and contribute to grid stability.

The Renewables Infrastructure Group's H1 2025 results reflect a resilient business model capable of generating substantial cash flows even under challenging operational conditions. The reaffirmation of the dividend guidance provides income investors with continued confidence in TRIG's ability to deliver sustainable returns, with the focus now shifting to the successful completion of the Ryton battery storage project and the final investment decision on Spennymoor, both of which could serve as positive catalysts for the stock.