12 May 2023

11% Dividend Target Increase

The Board of NESF has approved a dividend target of 8.35p per ordinary share, representing an 11% increase from the previous year’s dividend of 7.52p per ordinary share. 


The Company has declared total dividends since IPO of £305.8m or 55.72p per share. This announcement represents NESF’s tenth consecutive dividend target increase, in line with the Company’s progressive annual dividend policy. The Company has achieved all of its dividend targets whilst maintaining a covered dividend throughout the nine years since IPO and continues to target a covered dividend beyond the current financial year.


The dividend target is forecasted to be 1.3x-1.5x covered, supported by a high degree of visibility of the Company’s revenues. The Company’s RPI-linked subsidised revenues represent approximately 50% of total revenues. Remaining revenues are derived from budgeted electricity generation, prices for 88% of which have been fixed through to 31 March 2024 through the Company’s active power hedging strategy.


The dividend target increase is not dependent on the completion of the Company’s recently announced Capital Recycling Programme and dividend cover forecasts do not assume revenues from, or sale proceeds connected with, the Capital Recycling Programme.


In deciding the target dividend, the Board considers projected future power prices and associated price hedges, inflation in renewable markets, historic and budgeted technical, financial, and operational performance of NESF’s portfolio, and the ratio of cash cover to proposed dividend payments.


The Company continues to offer ordinary shareholders a scrip dividend alternative. 


Full RNS here: https://tools.eurolandir.com/tools/Pressreleases/GetPressRelease/?ID=4294514&lang=en-GB&companycode=gg-nesf&v=