Greencoat UK Wind PLC reported a net asset value per share of 133.5 pence as at December 31, 2025, the company said on Thursday. That NAV incorporates the impact of RPI/CPI rebasing of subsidies and is lower than the 136.1 pence figure the company had earlier pre-announced - which did not include the rebasing adjustment.
The result equates to a total return of -4.9% for the year. The company’s shares are trading at 93.45 pence, which represents a 29.8% discount to the stated NAV. Because the shares traded at a discount greater than 10% during the reporting year, shareholders will be asked to vote on continuation at the fund’s upcoming annual general meeting.
Management attributed the negative performance in the fourth quarter primarily to power price movements, which reduced NAV by 2.4%. Other negative contributors in the quarter included SPV budget updates that detracted 0.9%, lower near-term inflation expectations which subtracted 0.4%, and a 0.3% hit from reduced capital allowances announced at the Autumn Budget.
Operationally, full-year generation was 8.5% below budget, with the shortfall mainly resulting from low wind resource in the first half of the year. The portfolio’s average power price achieved across the year was £70 per MWh, a 13% discount to the average N2EX index price of £80.7 per MWh. The company reported that portfolio availability met expectations.
To manage merchant price risk, Greencoat UK Wind has put in place arrangements to fix power prices for two years for approximately 150 gigawatt-hours per annum of its offshore wind production. The company said it expects to finalize additional fixed price arrangements during 2026. Despite these agreements, the fund will continue to retain material exposure to merchant power prices.
On the cash and returns front, net cash generation for the year totalled £291 million, producing dividend cover of 1.3 times, the same level as in 2024. Guidance for 2026 indicates expected dividend cover of 1.7 times. However, base case dividend cover projections for the 2026-2028 period are about 0.1 times lower than the figures disclosed at the interim stage, a change the company said likely reflects the combined effects of lower power prices and the RPI/CPI rebasing of subsidies.
No new asset disposals were announced alongside the results. Management reiterated that further divestments remain a priority for the company’s capital allocation in 2026. Proceeds from disposals, together with excess cash generation, are intended to be used to reduce gearing, continue the share buyback programme, and underpin a disciplined return to reinvestment.
Balance sheet and liquidity figures as at December 31, 2025 include £171 million of cash (including SPV-level cash) and aggregate gross debt of £2.126 billion, representing 42.5% of gross asset value. Of the gross debt, £230 million related to the drawn revolving credit facility.
On buybacks, the company completed £199 million of share repurchases by year-end and carried out an additional £2 million of repurchases after the period end, taking total buybacks above the stated £200 million commitment.
Key points
- NAV per share: 133.5 pence as of December 31, 2025, after RPI/CPI rebasing of subsidies. Shares trade at 93.45 pence, a 29.8% discount to NAV.
- Performance drivers: power prices reduced NAV by 2.4% in Q4; full-year generation was 8.5% below budget due to low wind resource in H1.
- Liquidity and capital allocation: £171 million cash, £2.126 billion gross debt (42.5% of gross asset value); company finished buybacks in excess of the £200 million target and plans further divestments.
Risks and uncertainties
- Power price volatility - continued exposure to merchant prices creates earnings and NAV sensitivity, impacting renewable energy and utility-sector investors.
- Resource variability - wind shortfalls can materially reduce generation versus budget and affect dividend cover and cash generation.
- Subsidy rebasing and policy impacts - adjustments to RPI/CPI-indexed subsidies and changes to capital allowances can lower NAV and projected dividend cover.