JLEN Environmental profit rises on increase in energy prices

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

Alliance News 25 November, 2021 | 10:55AM
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(Alliance News) - JLEN Environmental Assets Group Ltd on Thursday reported a sharp rise in profit due to a significant increase in energy prices and inflation.

The environmental infrastructure investment fund's pretax profit in the six months to September 30, more than tripled to GBP51.8 million from GBP10.7 million a year before.

The company's portfolio value was GBP678.8 million as at September 30, up 19% from the GBP571.4 million quoted at March 31.

JLEN attributed this growth to the strong "rebound" of wholesale electricity and gas prices, after being down during lockdown periods as well as above-forecast inflation.

Net asset value per share rose 6.7% to 98.4 pence as at September 30 from the 92.2p at March 31.

JLEN's declared an interim dividend of 3.40 pence per share, slightly increased from the 3.38 pence a year before.

Total shareholder return increased 63.6% between the company's initial public offering on March 31 to September 30.

JLEN remarked that it experienced challenges with its wind portfolio that was below its target during the period, due to low wind resource. Furthermore, the company noted headwinds through supply chain issues and the potential negative effect of further lockdowns on energy prices.

Nonetheless, the investment fund stated its portfolio compromising a mix of environmental infrastructure assets is well-positioned for growth.

"The portfolio has performed well, in both operational and financial terms, bolstered by significant increases in projected power prices and despite some challenges due to exceptionally low wind speeds during the period," Chair Richard Morse said.

He added: "Our portfolio is well-positioned to support the UK's decarbonisation strategy on the back of COP26 while providing attractive returns to shareholders."

Shares in JLEN Environmental were up 0.2% at 102.98 pence each on Thursday morning in London.

By Abby Amoakuh; abbyamoakuh@alliancenews.com

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
JLEN Environmental Assets Group Ord 86.92 GBX -0.78 -

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