Investing.com -- Foresight Environmental Infrastructure on Friday delivered stable returns amid sector headwinds
Investing.com -- Foresight Environmental Infrastructure Limited (LON:FGEN) reported a positive NAV total return of 2.0% for the six months ended September 30, despite persistent sector challenges.
The company maintained its dividend target of 7.96 pence per share for the full year, representing a 12% yield based on current share price. FGEN’s diversified portfolio generated strong cash flows with dividend cover of 1.22x during the period.
NAV per share stood at 104.7 pence, down slightly from 106.5 pence at March 31, after payment of interim dividends totaling 3.94 pence per share. The company’s renewable energy assets generated 556GWh, performing 0.5% above budget after accounting for recovery of downtime.
FGEN’s growth assets showed positive momentum, with CNG Fuels increasing truck numbers and maintaining profitability, while Rjukan aquaculture delivered its first trout harvest. The Glasshouse continues onboarding new customers and targets cash flow breakeven later this year.
Chair Ed Warner noted: "Our diverse portfolio continues to generate strong cash flows, providing a dependable foundation for dividend growth and long-term value creation."
The company recently implemented a £30 million share buyback program to address its approximately 38% discount to NAV. FGEN also revised its investment manager fee structure, now calculated 50% based on NAV and 50% on market capitalization.
Regarding the UK government’s consultation on potential changes to renewable subsidies, FGEN estimates a relatively modest NAV impact of 0.5 pence per share under the preferred option, highlighting the benefits of its diversified portfolio structure.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
