REG - Gore Street Energy - Unaudited NAV and Dividend Declaration

Gore Street Energy Storage FundAnnouncement

11/09/2024 07:00

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RNS Number : 6576D  Gore Street Energy Storage Fund PLC  11 September 2024

11 September 2024

Gore Street Energy Storage Fund plc

(the "Company" or "GSF")

Unaudited NAV and Dividend Declaration

Gore Street Energy Storage Fund plc, the internationally diversified energy
storage fund, is pleased to announce its unaudited Net Asset Value ("NAV") as
at 30 June 2024.

Net Asset Value - June-end 2024

The Company announces an unaudited NAV of 104.4 pence per share as at 30 June
2024, representing a 2.5% decrease during the quarter (31 March 2024: 107.0
pence per share). Accounting for the 2.0 pence dividend paid during the
period, the quarterly NAV total return was -0.7%.

The total NAV return, including dividends paid, amounts to 46.7% since the IPO
in May 2018. DCF changes include a prudent update to assumed asset
availability within the GB market, which the Investment Manager believes could
be affected for a period by certain external factors such as curtailment.
Other key macro assumptions and merchant revenue forecasts remain unchanged
from the Company's March-end 2024 NAV.

Unaudited movement in NAV between 31 March 2024 and 30 June 2024

                                                        £ million   Pence per Ordinary Share
 NAV as at 31 March 2024                                540.7       107.0
 Fund and Subsid. Holding Companies Operating Expenses  (2.7)       (0.5)
 Dividends                                              (9.9)       (2.0)
 Cash Generation                                        5.0         1.0
 DCF changes and Rollover                               (5.9)       (1.1)
 NAV as at 30 June 2024                                 527.2       104.4

 

Strong Balance Sheet:

·    As at 30 June 2024, the Group remained well-capitalised, with £66.1m
in cash or cash equivalents.

·    As at the same date, the Group had drawn £56.4m from its borrowing
facilities, with additional debt headroom of £39.8m.

·    As previously disclosed in the Company's FY24 Annual Report, the
Investment Manager expects a cash inflow in the range of $60 million to $80
million for next year under the Investment Tax Credit regime available to its
US construction assets.

Construction Updates

·    The Company's construction portfolio is now significantly de-risked,
with only three assets left to come online.

o Enderby (57 MW / 57 MWh), based in GB, is in its final stages of completion,
and the Company expects to update the market shortly via the Monthly
Factsheet.

o Big Rock (200 MW / 400 MWh) has completed various construction milestones,
including all battery and inverter enclosures on site post-period.

o  Dogfish (75 MW / 75 MWh) construction is progressing to plan; site works
are well advanced, with the first delivery of batteries expected in
mid-September.  The US assets are on track for their respective energisation
dates (Big Rock: December 2024, Dogfish: February 2025), resulting in
energised capacity reaching c.750 MW in the next five months.

Dividend Declaration

As per the Company's dividend policy, the Board of Directors has approved a
dividend of 1.0 pence per share for the June-end quarter. The ex-dividend date
will be 26 September 2024, followed by a record date of 27 September 2024. The
dividend will be paid on or around 18 October 2024.

Any such dividend payment to Shareholders may take the form of either dividend
income or "qualifying interest income", which may be designated as an interest
distribution for UK tax purposes and, therefore, subject to the interest
streaming regime applicable to investment trusts. Of this dividend declared of
1.0 pence per share, 1.0 pence is treated as qualifying interest income.

The Board would like to take the opportunity to reaffirm to investors that it
remains committed to the Company's 7.0 pence dividend target per Ordinary
Share for the financial year.

Annual General Meeting (AGM)

The AGM will be held on Wednesday, 18 September 2024, at 10.00 a.m. More
information can be found on page 88 of the 2024 Annual Report and Financial
Statement here.
(https://www.gsenergystoragefund.com/docs/librariesprovider22/archive/reports/annual-report-2024.pdf)
Investors are encouraged to vote.

Factsheets

The Company produces a monthly factsheet, in addition to quarterly updates, to
communicate developments from across its portfolio and markets in which it
operates. The publications, including the quarterly factsheet, are available
on the Company's website here
(https://www.gsenergystoragefund.com/content/investors/factsheet) .

CEO of Gore Street Capital, the Investment Manager of the Company, Alex
O'Cinneide, commented:

"The portfolio is now materially derisked with just three assets left in
construction. Once the three assets are completed, we expect the portfolio to
reach a steady state, able to meet its dividend targets from cash generation.
Furthermore, we expect a material increase in contracted revenue contribution
to portfolio cashflow through the Resource Adequacy contract, for which the
200 MW Big Rock asset is eligible once operational. Additionally, we expect a
cash inflow of between $60-80 million under the Investment Tax Credit Regime
for the 275 MW of US construction assets. This influx of cash adds optionality
to de-lever the portfolio, build further assets, or reward shareholders
through dividends or buybacks.

We remain committed to providing strong returns through the unique exposure
across multiple uncorrelated markets and delivering value for all
stakeholders."

For further information:  

Gore Street Capital Limited
 

Alex O'Cinneide / Paula Travesso / Ben Paulden
 

Email: ir@gorestreetcap.com (mailto:ir@gorestreetcap.com)
 
Tel: +44 (0) 20 3826 0290

 

Shore Capital (Joint Corporate Broker)

Anita Ghanekar / Fiona Conroy/ Sophie Collins
 
                Tel: +44 (0) 20 7408 4090

(Corporate Broking)

 

J.P. Morgan Cazenove (Joint Corporate Broker)

William Simmonds / Jérémie Birnbaum (Corporate Finance)
                Tel: +44 (0) 20 3493 8000

 

Burson Buchanan (Media Enquiries) 

Charles Ryland / Henry Wilson / George Beale
 
Tel: +44 (0) 20 7466 5000

Email: gorestreet@buchanan.uk.com

 

Notes to Editors  

About Gore Street Energy Storage Fund plc  

Gore Street is London's first listed and internationally diversified energy
storage fund dedicated to the low-carbon transition. It seeks to provide
Shareholders with sustainable returns from their investment in a diversified
portfolio of utility-scale energy storage projects. In addition to growth
through increasing operational capacity and a considerable pipeline, the
Company aims to deliver consistent and robust dividend yield as income
distributions to its Shareholders.  

 

https://www.gsenergystoragefund.com (https://www.gsenergystoragefund.com)

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