JLEN sees no long-term material impact from COVID-19 crisis
10.7-MW Monksham Solar in Frome, Somerset. Source: JLEN (http://jlen.com). License: All Rights Reserved.
March 26 (Renewables Now) - JLEN Environmental Assets Group Ltd (LON:JLEN) today reaffirmed its fully-year dividend guidance and said it does not expect the coronavirus crisis to have a long-term material impact on its ability to achieve its investment goals.
The London-listed renewable infrastructure investment trust said in a statement it reiterates its forecast for a dividend of GBP 0.0666 (USD 0.079/EUR 0.073) per share for the current fiscal year through March 2020, including a quarterly dividend of GBP 0.01665 apiece for the period January-March 2020.
JLEN noted that its portfolio started the year with generation that is about 15% over budget, with wind farms demonstrating a very strong performance because of a good wind resource. The trust anticipates a further short-term reduction in power prices due to an expected fall in demand, but added that an improvement is projected for the medium-term.
According to JLEN, only a third of its underlying revenues come from the sale of wholesale power. The company has fixed price or floor arrangements that cover 49% of electricity production for the upcoming summer season and 48% for the winter of 2020-2021.
JLEN’s wind, solar, anaerobic digestion (AD) and hydropower plants are performing as expected, without any material interruption. Its food waste project has experienced a reduction to its commercial food waste collections, but that asset represents less than 5% of the portfolio and is ungeared, it noted.
The trust added that all project debt is on a long-term, fully amortising basis with no need for refinancing, while its revolving credit line is not due to be refinanced until June 2022.