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John Laing Environmental Assets Driven Up By Portfolio Enhancements

(Alliance News) - John Laing Environmental Assets Group Ltd on Thursday reported a sharp rise in ...

Alliance News 13 June, 2019 | 11:17AM
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(Alliance News) - John Laing Environmental Assets Group Ltd on Thursday reported a sharp rise in net assets in financial 2019, driven by the performance of its Solar and Anaerobic Digestion portfolios.

At March 31, the environmental infrastructure investor's NAV per share stood at 104.7 pence, compared to 99.6p a year before, a 5.1% increase.

The NAV rise was attributed to "value enhancements", which included the investment company refinancing its portfolio of wind and solar assets.

John Laing Environmental's net assets jumped 33% in the twelve month period, ending the year at GBP520.3 million after opening the period at GBP392.4 million. The investment company issued about 102.9 million shares in the period.

The company's portfolio value at the end of the period was GBP523.6 million, 22% higher than the GBP429.5 million value reported a year prior.

"Operating performance of the environmental infrastructure portfolio during the year was generally satisfactory, with some exceptions," the company said.

In a statement, John Laing Environmental explained: "The renewables segment of the portfolio produced 746GWh of green energy, compared to 514GWh the year before. Wind was the biggest detractor from budget, with generation 9.2% below budget, compared to 0% variance from budget last year, primarily due to unusually low average wind speeds, particularly during the summer months.

"Solar generation was 1.6% above budget, from 9% below budget last year, driven by high solar irradiation throughout the year and particularly over the summer months. The Anaerobic Digestion portfolio continued to outperform, with gas generation 4% above budget. In 2018 the portfolio was 8% above budget."

Anaerobic digestion is the process of producing biogas, a methane-rich gas that can be used as fuel or fertiliser.

John Laing Environmental declared a total dividend of 6.51p per share, 3.2% ahead of the 6.31p distributed the prior year.

The hike in payout is in line with the company's target but has increased its target dividend for financial 2020 to 6.66p.

"JLEN passed the milestones of GBP500 million portfolio value and market capitalisation during the year and has consolidated its position as an attractive, low-risk, diversified environmental infrastructure investor, paying a consistent and growing dividend," said Chair Richard Morse.

Morse continued: "We continue to see attractive opportunities across environmental infrastructure sectors and we look forward to working with Foresight Group in the year ahead as the company's investment advisory team transfers there from July 1."

Shares in John Laing Environmental were down 1.1% Thursday at 116.68 pence each.

By Paul McGowan; paulmcgowan@alliancenews.com

Copyright 2019 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
John Laing Environmental Assets Ord 121.00 GBX 2.98 -

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