StockMarketWire.com - Infrastructure group John Laing has reported a decline in group net asset value (NAV) driven by challenges in its renewable energy projects, as its PPP portfolio delivered a solid financial and operational performance in the first half of 2020.

The group said NAV was 309p per share at 30 June 2020, a decline of 6% in the period before dividends paid, despite a positive 3% contribution to NAV growth from the PPP portfolio, representing 74% of total portfolio value.

John Laing said 87% of PPP portfolio value comprised availability-based revenue projects, which performed well in the period and provided a 'resilient underpin' to the portfolio, even during the market volatility brought on by COVID-19, while 13% of PPP portfolio value comprised volume-based revenue projects, with only a modest impact from COVID-19.

It saw a negative 7% contribution to NAV from its renewable energy portfolio in the six months ended 30 June 2020, with renewable energy projects facing challenges from the impact of declining power price forecasts and changes in macro-economic assumptions.

The group reported that 26% of total portfolio value comprised renewable energy projects which will be realised over time.

John Laing announced there was £2m of new investment commitments during the period but warned that the target of £1bn of investments by the end of 2021 is 'unlikely to be achieved'.

Chief executive Ben Loomes said: 'The resilient performance of the PPP portfolio and continued good project delivery have been more than offset by challenges in the renewable energy portfolio as well as macro-economic factors.

'New investments in the period were minimal, with COVID-19 delaying public procurement processes, as well as the decision taken earlier this year to cease new investment in wind and solar generation.'

The group declared an interim dividend of 1.88p per share, an increase of 2.2% on the prior year, above inflation.


At 8:20am: [LON:JLG] John Laing Group PLC share price was -13.3p at 290.9p



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