Octopus Renewables Infrastructure Trust shares rose 0.9% to 114.1p in late morning trading on Friday after the group announced an unaudited NAV rise of £40 million to £627.5 at 30 June 2022, representing a growth of 7.1p to 111.1p per share.
Octopus Renewables attributed the rise to increases in short-term wholesale energy price forecasts, especially across the UK, Sweden, Poland and Finland.
The valuation reportedly includes an increased discount to baseload forward prices on revenue not fixed in each market of 30% for 2022 and 2023, and 20% for 2024 and 2025.
The company confirmed a 20% discount for 2022 and 2023 for Nordic markets only at 31 March 2022.
Octopus Renewables commented the impact of updating wholesale energy price forecasts was over £17.2 million.
The group said it had a fixed pricing on a substantial portion of output for the rest of 2022 and 2023 at the Saunamaa and Suolakangas wind farms in Sweden and Finland, and the Penhale solar farm in the UK.
The company added its fixed power price agreements were secured at prices over forecast, resulting in a valuation climb of £1.8 million.
Meanwhile, 60% of ORIT’s forecast revenue at 30 June 2022 to 30 June 2024 was fixed, with approximately 51% of Octopus Renewable’s forecast revenues to be received by its current asset portfolio was confirmed to be explicitly inflation linked.
The firm noted a gain of £3.9 million recognised on the completed construction at the Kuslin wind farm in Poland, along with the completion of civil works and the installation of seven out of eight turbines at the Cerisou French wind farm.
Octopus Renewables announced all its assets under construction were scheduled to achieve operational status by the end of Q2 2023.
The group said it continued to see strong appetite for renewable energy assets in its target regions and no alterations to market discount rates made over Q2.