Citing poor performance in the first half of the year, John Laing Group has put renewable investments in Europe and Australia on pause, according to Renewables Now.
"Our operational performance in the first half was strong; however, we have had a number of challenges with our renewable energy assets in Australia and Europe,” said CEO Olivier Brousse. “We delivered value enhancements across the portfolio, but predominantly in renewable energy, which has helped to mitigate the impact of these challenges.”
Three of its renewable energy plants in Australia experienced transmission issues, resulting in a £66 million ($80 million) write-down, according to Renewables Now. The company also encountered problems with its wind farms in Europe, causing an additional £55 million ($67 million) in write-downs.
As a result, the net asset value only increased by 3 percent, for a value of £1.599 billion ($1.962 billion) in June, compared with £1.586 billion ($1.946 billion) in December 2018.
As part of the shift, John Laing also plans to limit its energy investments in the United States.
“New renewable energy investments have been put on hold in Europe and Australia, and limited to recycling of capital in North America, as we reassess our approach to risk and return in these markets,” said Brousse.
