Tilt Renewables share price on watch after updated guidance

The Tilt Renewables Ltd (ASX: TLT) share price is one to watch after a bumper first-half result from the New Zealand renewables company.

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Tilt Renewables Ltd (ASX: TLT) share price is one to watch this morning after a strong half-year earnings update.

What did Tilt Renewables announce?

Tilt posted a strong financial result for the first half of the year, with earnings following an upward trajectory.

It reported revenue up 7% on the prior corresponding period (pcp) to $103.4 million for the period ended 30 September 2019.

Tilt's underlying earnings after tax rocketed 399% to $18.8 million excluding net fair value gains/losses on financial instruments.

The New Zealand-based renewables group's net profit after tax also soared 40% higher on pcp to $71.4 million in a strong start to the financial year. Net cash flow from operations sits at $50.8 million. 

Tilt's pipeline has grown to over 3.4 gigawatts (GW) including 1 GW of late-stage projects. This includes projects in 5 states across Australia and both islands of New Zealand with battery storage and firming options available to the company.

The group also continues to develop its wind energy capabilities with 636 megawatts (MW) and 322 turbines now operational. Tilt reported 111 turbines are now under construction with 469 MW of energy generation on the way.

The company's Dundonnell Wind Farm involves $260 million of shareholder equity invested with 74 of 124 transmission poles completed. Development continues at its Waipipi Wind Farm, with financial close achieved in September 2019.

Aside from the near-400% increase in underlying earnings, Tilt's balance sheet also remains in a good position. 

The Board declined to pay an interim dividend, having paid out 1.6 cents per share in 1H 2019. This came as Tilt expanded its dividend payout range to 0–50% from its previous 25–50% range.

Overall, the Tilt Renewables share price has climbed 21.86% higher in 2019, but remains tightly-held.

Foolish takeaway

The Tilt Renewables share price hasn't budged just yet despite the strong first-half result, as is tradition with the stock

This is largely due to the minimal free-float with the majority of Tilt stock held by Infratil Ltd (ASX: IFT) and Mercury NZ Ltd (ASX: MCY).

Motley Fool contributor Kenneth Hall has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

Two excited woman pointing out a bargain opportunity on a laptop.
Opinions

2 great value ASX shares I want to buy

These stocks are high on my watchlist.

Read more »

Broker looking at the share price.
Share Market News

5 things to watch on the ASX 200 on Tuesday

Here's what to expect on the local market today.

Read more »

A young woman sits with her hand to her chin staring off to the side thinking about her investments.
Broker Notes

Down 16% in 6 weeks: Is this ASX 200 share a bargain buy?

Bell Potter has given its verdict on this beaten down stock.

Read more »

Ten smiling business people wave to the camera after receiving some winning company news.
Share Gainers

Here are the top 10 ASX 200 shares today

The ASX 200 enjoyed a strong start to the trading week today.

Read more »

Three people in a corporate office pour over a tablet, ready to invest.
Broker Notes

Leading brokers name 3 ASX shares to buy today

Here's why brokers believe that now could be the time to snap up these shares.

Read more »

A young woman sits at her desk in deep contemplation with her hand to her chin while seriously considering information she is reading on her laptop
Opinions

1 ASX 200 dividend stock down 20% to buy right now

This beaten-up ASX share could be a top pick for dividends and stability.

Read more »

Man sitting in a plane looking through a window and working on a laptop.
Opinions

2 cheap ASX 200 shares I'd buy in May

I think these stocks are too cheap to ignore.

Read more »

Smiling couple looking at a phone at a bargain opportunity.
Share Gainers

Why Gentrack, New Hope, Nuix, and Star Entertainment shares are charging higher

These shares are starting the week strongly. But why?

Read more »