In This Article:
-
NAV per Share: Declined by about 15% due to lower revenue forecasts.
-
Net Debt Position: GBP110 million, with GBP150 million debt drawn and GBP40 million cash.
-
Operational Capacity: Grew to 845 megawatts by end of 2024, with an additional 100 megawatts added in 2025.
-
Revenue Growth: Year-over-year growth of 20% in the second half of 2024.
-
EBITDA Growth: Slower growth compared to revenue due to operational impacts.
-
Contracted Revenues: Approximately half of revenues contracted for a couple of years, covering 360 megawatts of 568 megawatts.
-
Refinancing: Plans to refinance existing facilities at a lower interest rate, expected to close in Q2 2025.
-
Three-Year Plan: Targeting 1,750 megawatts capacity with augmentations and new projects.
-
EBITDA Target: GBP150 million on a run rate basis by the end of 2027.
Release Date: April 23, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Gresham House Energy Storage Fund PLC (LSE:GRID) experienced a significant recovery in revenues and earnings in the second half of 2024, continuing into the first quarter of 2025.
-
The company has successfully contracted approximately half of its revenues for a couple of years, reducing downside risk.
-
Operational capacity has grown strongly, reaching 1.5 gigawatt hours, with plans to further increase capacity.
-
The refinancing of existing facilities is expected to close at a lower interest rate, allowing for new project financing and augmentations.
-
The company plans to reinstate dividends and potentially initiate share buybacks following the completion of refinancing.
Negative Points
-
The NAV per share declined by about 15% due to lower revenue forecasts and a change to a more conservative forecast provider.
-
The company faced a challenging first half of 2024 with weak revenues, leading to the suspension of dividends.
-
There have been delays in closing out certain projects, such as Shelton Lane, due to administrative issues.
-
The company remains at a significant discount to NAV, impacting management fees and shareholder value.
-
The market environment remains uncertain, with potential impacts from zonal pricing and queue reform on future operations.
Q & A Highlights
Q: Can you explain the impact of the Harmony Energy Income Trust acquisition on Gresham House Energy Storage Fund's valuation? A: Ben Guest, Managing Director - New Energy, explained that the acquisition of Harmony Energy Income Trust at NAV suggests a positive read across for Gresham House Energy Storage Fund. The transaction indicates that NAV is a relevant metric, and the deal was conducted at NAV, which is significantly higher than Gresham House's current share price.