Tilt Renewables (ASX:TLT) share price lifts on annual results

The Tilt Renewables Ltd (ASX: TLT) share price is rising following the release of the company’s annual full-year results.

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Tilt Renewables Ltd (ASX: TLT) shares are edging higher this morning following the release of the company’s annual full-year results. At the time of writing, the Tilt Renewable share price is trading 0.67% higher at $7.46. 

The standard financial year for Tilt’s home country, New Zealand, runs from 1 April to 31 March. Hence, we’re seeing annual full-year results from Tilt Renewables at the time ASX watchers might be expecting to see companies report their third-quarter results.

Let’s take a closer look at the year that’s been for the renewable energy company.

How has Tilt been performing?

The Tilt Renewables share price is in the green this morning despite the company delivering a weaker performance than the prior corresponding period (pcp). 

The company reported earnings before interest, tax, depreciation, and amortisation (EBITDA) of $74.9 million – 36% less than the 2020 financial year.

It also brought in 25% less income throughout the 2021 financial year, with $128.3 million in revenue.

That figure brought the company’s earnings per share down from $1.17 in the pcp to 16.7 cents in the 2021 financial year.

Tilt’s after-tax profit was also bleaker than the previous period. It was down 86% to $67 million — a long way from last financial year’s after-tax profit of $478.4 million.

In positive news, Tilt expressed confidence in its debt position, highlighting it has enough cash to run its operations for the foreseeable future.

Tilt had 29% gearing as of the end of March, with no debt refinancing required until 2023. The company stated this leaves it with the debt headroom and flexibility to support its development pipeline.

Tilt’s current assets are valued at around $371.5 million, with approximately $155 million of that being cash in the bank. According to the company, this is more than enough to fund its Rye Park Wind Farm or other growth options if approved by its board.

Other news

The 2021 financial year was far from uneventful for Tilt Renewables. In fact, the company has made some major changes.

Perhaps the most significant is its proposed acquisition by PowAR and Mercury NZ Ltd (ASX: MCY). Under the acquisition, PowAR will take over Tilt’s Australian business and Mercury will assume control of its New Zealand operations. The acquisition is set to be finalised in August 2021 and will see Tilt shareholders receive NZ$8.10 per share.

Tilt completed construction of its Waipipi Wind Farm in March 2021. It now has three ongoing projects in New Zealand.

It’s also on its way to complete commissioning activities at its Dundonnell Wind Farm in Australia by the end of this year. Tilt is working towards an investment decision for its Rye Park Wind Farm, as well as developing another three projects in Australia.

Tilt created 1,840 gigahertz of energy over the year, with Waipipi and Dundonnell contributing 40% that.

Tilt Renewables share price snapshot

The Tilt Renewables share price has been performing well on the ASX lately, rising by around 24% year to date. It’s also gained more than 130% since this time last year.

The renewable energy company has a market capitalisation of around $2.79 billion, with approximately 377 million shares outstanding.

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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