TIDMGSEO
RNS Number : 9353R
VH Global Sustainable Energy Oppt.
01 November 2023
VH Global Sustainable Energy Opportunities plc
01 November 2023
Financial & Operational Highlights
Share buyback programme
Noting the discount at which the GSEO share price traded
compared to its NAV per share and the impact on shareholders'
returns, the Board of the Company announced on 15 September 2023 a
Share Buyback Programme for up to GBP10 million.
Interim dividend
The Board announced an interim dividend of 1.38p per share in
respect to the period 1 July 2023 to 30 September 2023, in line
with the annual dividend target for 2023.
Leverage
Total leverage of the Company is 2.2% of NAV, which still only
includes asset-level leverage at its US asset. The Company does not
currently employ leverage at the fund level and continues to target
a total NAV return of 10% net of the Company's costs and
expenses.
30 September 2023 NAV
The Company's NAV as at 30 September 2023 was 105.72p per share,
compared to the NAV of 110.21p per share as at 30 June 2023. The
movements in the NAV during the quarter include:
Pence per
share
----------
Net Asset Value per share as at 30
June 2023 110.21
Dividend paid during the quarter -1.38
Fund expenses -0.37
Share buyback 0.07
Movement in Fair Value of Assets -3.55
Movement in foreign exchange 0.74
----------
Net Asset Value per share as at 30
September 2023 105.72
----------
Movement in fair value of assets
The negative NAV movement this quarter was driven primarily by
the increase in the 20-year US Treasury rate from 4.07% as at 30
June 2023 to 4.90% as at 30 September 2023. This increase resulted
in a direct rise in the discount rates used in the valuation of
assets for the period, and a resulting downward move in net asset
value per share as at 30 September 2023. The remaining inputs to
the valuation model remained broadly flat. Discount rates for
operational assets as at 30 September 2023 are 8.03% in the US,
9.07% in Australia, 9.77% for the Brazilian hydro facility and
12.06% for the Brazilian solar PV assets. The UK asset is in
construction and therefore currently held at cost.
Portfolio update
-- Brazilian solar PV assets:
- Construction has commenced on three of the remaining six solar
sites as announced in Q2 2023, with a projected completion in Q1
2024.
- Energy production of the ten operating sites is in line with expectations.
-- Brazilian hydro facility:
- The Brazilian hydro facility has continued to perform ahead of budget.
-- US terminal storage assets:
- The US terminal storage assets continue to perform well.
-- Australian solar PV with battery storage assets:
- The construction of the solar farm component for the three
remaining hybrid systems in New South Wales has reached mechanical
completion and is awaiting grid testing prior to full commissioning
in Q4 2023.
-- UK flexible power with carbon capture and reuse (CCR) assets:
- The construction of the 10MW site is progressing. First power
is expected within the next three months and commissioning of the
integrated plant with CCR is expected to be reached in Q1 2024.
Foreign exchange
During the quarter, GBP weakened versus the USD by 3.9% and AUD
0.5% but strengthened against the BRL by 0.9%. A net weakening of
GBP against the portfolio currencies resulted in FX gains. The
Company has a mandate to hedge the short-term distributions from
investments from local currency to GBP.
Investment objective & strategy summary
The Company's investment objective is to generate stable
returns, principally in the form of income distributions, by
investing in a diversified portfolio of global sustainable energy
infrastructure assets, predominantly in countries that are members
of the EU, OECD, OECD Key Partner countries or OECD Accession
Countries.
The Company continues to support the global energy transition
while offering its shareholders both a progressive income stream
and capital growth. The Company can confirm that there is no change
to its 2023 income target. The Company targets a total NAV return
of 10%, net of costs and expenses, and a progressive annual
dividend per share, paid quarterly (currently targeting 5.52p for
the year ending 31 December 2023). Total leverage of the Company
continues to be minimal, at 2.2% of NAV as at 30 September 2023,
which includes asset-level leverage at the US asset. The Company's
operational assets also continue to benefit from over 90% of
contracted revenues.
The factsheet will be available on the Company's website.
www.vh-gseo.com
The Company's LEI is 213800RFHAOF372UU580.
For further information, please contact:
Edelman Smithfield (PR Adviser)
Ged Brumby + 44 (0)7540 412 301
Hamza Ali + 44 (0)7976 308 914
Victory Hill Capital Advisors LLP (Investment Adviser)
Navin Chauhan info@victory-hill.com
Deutsche Numis (Corporate Broker)
David Benda +44 (0)20 7260 1000
Matt Goss
Apex Fund and Corporate Services (UK) Limited (Company
Secretary)
ukfundcosec@apexgroup.com
About Victory Hill Capital Partners LLP
Victory Hill Capital Partners LLP ("Victory Hill") is authorised
and regulated by the Financial Conduct Authority (FRN 961570).
Victory Hill is based in London and was founded in May 2020 by
an experienced team of energy financiers that spun-out of a large
established global project finance banking group. The team has
participated in more than $200bn in transaction values across 91
conventional and renewable energy-related transactions in over 30
jurisdictions worldwide. Victory Hill is the investment manager of
the Company.
The Victory Hill team deploys its experience across different
financial disciplines in order to assess investments holistically
from multiple points of view. The firm pursues operational
stability and well-designed corporate governance to generate
sustainable positive returns for investors. It focuses on
supporting and accelerating the energy transition and the
attainment of the UN sustainable development goals.
Victory Hill is a signatory of the United Nations Principles for
Responsible Investing (UN PRI), the United Nations Global Compact
(UN GC), Net Zero Asset Managers Initiative (NZAMI), a member of
the Global Impact Investing Network (GIIN) and is a formal
supporter of the Financial Stability Board's Task-Force on
Climate-related Disclosures (TCFD).
END
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