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).
