Infrastructure investment company Gaia Infrastructure Capital has reported a 205% year-on-year increase in earnings a share to 65.59c for the year ended February 28.
The company delivered an enhanced tangible net asset value per share of R10.63 during the period, compared with R9.97 in 2016.
“The completion of the Dorper Wind Farm acquisition, in the Eastern Cape, during the year was an important milestone towards the delivery of our investment mandate,” CEO Prudence Lebina said on Wednesday.
Dorper achieved commercial operation in 2014, is fully operational and is delivering electricity into the South African grid. It has a 20-year power purchase agreement at a set price that escalates yearly with inflation and is derisked through a government-backed guarantee.
As part of the Dorper acquisition, Gaia earned an option to acquire minority interests in three additional renewable-energy projects.
The company received its first dividend income of R15.6-million at the end of the financial year.
“A further highlight for the period is the payment of our maiden dividend of 63.5c, representing a dividend cover of 1.03 times and 6% of Gaia’s tangible net asset value per share,” she stated.
Gaia earned interest income of R33-million for the 2017 financial year with operating expenses amounting to R8.8-million.
Profit before interest and taxes amounted to R44.9-million, with net comprehensive income for the period of R36.2-million.
“Looking forward, our manager, Gaia Infrastructure Partners, has secured a qualified pipeline of investment opportunities, including many high-quality assets in the energy, transport and water and sanitation sectors for which it will require funding from the capital markets,” she noted.