Greencoat Renewables have purchased another poor performing wind farm in Tipperary, Cnoc Wind Farm, which made a loss of €897,000 in 2019. Its debts exceeded its assets by €1.1 million which is an indicator of insolvency although the accounts state that up front losses are a facet of wind farm development during the operational stage. The wind farm did trade during the year however with turnover of €1.4 million. Included in the loss is depreciation of € 872,000.
Irish Energy Blog previously showed that many wind farms in Ireland are making losses.
Brookfield Renewables have today indicated that they intend to sell the remainder of their Irish wind platform.
Fortunately the taxpayer is less exposed since the October sell-off. ISIF was Greencoat Renewable’s main backer when it floated in 2017, stumping up €76 million for a then 28% stake, since diluted to a 12% stake by additional equity issues.
ReplyDeleteNTMA flogged 57 million Greencoat Renewable shares (9% of issued equity) last month for €65 million (less €3.5 million placing fee), retaining a 3% stake (€22 million at current valuation). The capital gain to ISIF over the 3 years equates to 2.8% compound.
Looks like ISIF is getting out while it can.
Interesting. Who bought the stake?
DeleteBrookfield Renewables might have difficulties locating a bunch of idiots dumb enough to buy the remaining pieces of their Irish Platform.
DeleteIt sounds strange that an Irish Government would divest of a green loss making venture. They simply love green and love loss making. If its true its good news. Perhaps the Covid - 19 virus will drain the surplus cash from the big spenders.
ReplyDelete