The Tilt Renewables Ltd (ASX: TLT) share price has opened flat this morning after reporting strong quarterly and full-year production results.
What did Tilt announce this morning?
Tilt reported that energy production for the 12 months to 31 March 2019 was 2,054-gigawatt hours (GWh) from its portfolio of 8 operational wind farms, which was 14% higher year-on-year (YoY).
The strong FY19 result is the second time in 3 years that the portfolio has produced over 2 million GWh of emissions-free electricity, which is the equivalent of 260,000 averaged-sized Australian/New Zealand homes for the year.
Full-year FY19 production from the portfolio came in 1% ahead of long-term expectations, with very soft wind conditions, particularly in Australia, to close out the most recent quarter.
Management said these soft conditions almost completely offset the strong production achieved during the first half of FY19, with quarterly results coming in 10% below long-term expectations.
Tilt's full-year FY19 earnings before interest, tax, depreciation, amortisation and other financial items (EBITDAF) is expected to be at the bottom of its updated $134 million to $138 million guidance range provided in October 2018.
While management noted the soft finish to the year, FY19 EBITDAF is expected to be at least 5% above the top of its original $120 million to $127 million guidance range and significantly above its FY18 result.
Should you buy Tilt Renewables?
For Tilt it's not so much a matter of should you buy as much as if you can buy the stock.
Tilt currently has a market cap of over $1 billion but is tightly controlled by Mercury NZ Ltd (ASX: MCY) and Infratil Limited (ASX: IFT), with a combined ownership of over 85%.
The company is extraordinarily illiquid for such a large company and regularly goes long periods with zero trading volume on the ASX.
In the meantime, Fools should consider this buy-rated stock that could soar higher in 2019 as it tries to capture a piece of this $22 billion industry.
