6 February 2024
Aquila European Renewables
plc
Net Asset Value and Factsheet - December
2023
Aquila European Renewables plc (the
Company), a Euro income fund, announces its unaudited net asset
value ("NAV") as at 31 December 2023, on a
cum-income basis, was EUR 372,540,976 or 98.52 cents per ordinary share. This
represents a NAV total return of -2.6% per Ordinary Share over the
quarter.
Key drivers of the NAV movement in
Q4 2023:
·
Impact of changes to Norway's taxation of onshore
wind farms, which impacted both Tesla and The Rock (-4.4 cents per
Ordinary Share);
·
Medium to long-term increase in power prices in
the Nordics due to higher winter demand, lower renewable output,
lower hydrologic conditions and delayed offshore wind build-out in
northern Europe, offset by a decrease in power prices in Iberia due
to lower demand resulting from milder than expected weather and
lower projected commodity prices (-0.5 cents per Ordinary
Share);
·
Following completion of external due diligence, an
asset life extension was applied to the Company's Finnish wind farm
Olhava (+2.5 years to a total of 30 years, +0.5 cents per Ordinary
Share);
·
Decrease in portfolio discount rate from 7.4% to
7.2% (excludes the impact of the RCF), largely due to a decrease in
the risk-free rate which was partially offset by an increase in the
market risk premium.
A sensitivity of NAV against
discount rates, inflation and power prices can be found
below.
|
Assumption
|
Impact on
NAV per
Ordinary Share
|
|
Discount rate
|
+0.5%
|
-5
cents
|
|
-0.5%
|
+6
cents
|
|
Inflation
|
+0.5%
|
+5
cents
|
|
-0.5%
|
-5
cents
|
|
Power price
|
+10.0%
|
+11
cents
|
|
-10.0%
|
-11
cents
|
Further details will shortly be
available in the quarterly factsheet on the Company's website
at: https://www.aquila-european-renewables.com.
For further details
contact:
Media contacts
Edelman Smithfield
Ged Brumby 07540-412301
Hamza Ali 07976 308914
Sponsor, Broker and Placing Agent
Numis Securities 020 7260 1000
Tod Davis
David Benda
George Shiel
NOTES
The objective of Aquila European
Renewables plc is to provide investors with an attractive
long-term, income-based return in EUR through a diversified
portfolio of wind, solar PV and hydropower investments across
continental Europe and Ireland. Through the diversification of
generation technologies, the seasonal production patterns of these
asset types complement each other to balance the cash flow, while
the geographic diversification serves to reduce exposure to one
single energy market. In addition, a balance is maintained between
government supported revenues, fixed price power purchase
agreements and market power price risk.
www.aquila-european-renewables.com
LEI: 213800UKH1TZIC9ZRP41