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Gore Street Energy Storage Fund PLC (GSF)

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idpickering
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Gore Street Energy Storage Fund PLC (GSF)

#602633

Postby idpickering » July 17th, 2023, 7:17 am

Final Results.

Performance highlights for the year ended 31 March 2023:

· NAV increased 47.8% to £556.3m (FY 2022: £376.5m).

· NAV per share increased 5.9% to 115.6 pence (FY 2022: 109.1 pence).

· Total NAV return of 12.3% and 48% since 31 March 2022 and IPO, respectively (FY22: 13.1% and 34.2%).

· £39.3m in revenue was generated during the reporting period (FY 2022 £29.3m), averaging £135,000 per MW/yr. Over the 2022 calendar year, the Company achieved a consistently high average revenue of £157,000 per MW/yr.

· EBITDA of the operational portfolio increased 19% to £27.8 million (FY 2022: £23.3 million), with 63.5% secured outside Great Britain.

· Dividends paid during the 12-month period of 7 pence per share, with an operational dividend cover of 0.90x. This was achieved with c.25% of the Company's portfolio operational at the period end.

· Dividends declared for the period of 7.5 pence per share.

· Weighted average discount rate increased to 10.1% (FY 2022: 8.3%).

· Portfolio revenue curves increased during the period, largely driven by the Company's geographically diverse portfolio.


https://www.investegate.co.uk/announcem ... ts/7635539

Ian (No holding).

idpickering
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Re: Gore Street Energy Storage Fund PLC (GSF)

#620158

Postby idpickering » October 12th, 2023, 7:41 am

Statement re Portfolio Update and Share Price.

Gore Street Energy Storage Fund plc, the internationally diversified energy storage fund, is pleased to share an update for FY Q2 ending 30 September 2023. This quarter again highlights the benefits of the Company's early diversification strategy, with the consolidated portfolio outperforming the Company's GB fleet by c.3x, based on average revenue per MW during the period. The portfolio build-out continues to progress following September's energisation of 79.9 MW of additional capacity.

The Board continues to monitor the current GSF share price volatility. The Board and the Investment Manager confirm that they are not aware of any portfolio-specific factors that have led to the recent sharp decline in the share price. The Board believes that the discount to Net Asset Value at which the Company's share price currently trades materially undervalues the Company and its portfolio. The Board maintains confidence in the quality of the assets across the five international energy markets, which continue to perform strongly, underpinning the dividend.


https://www.investegate.co.uk/announcem ... e-/7811441

Ian (No holding).

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Re: Gore Street Energy Storage Fund PLC (GSF)

#620173

Postby daveh » October 12th, 2023, 9:18 am

idpickering wrote:Statement re Portfolio Update and Share Price.

Gore Street Energy Storage Fund plc, the internationally diversified energy storage fund, is pleased to share an update for FY Q2 ending 30 September 2023. This quarter again highlights the benefits of the Company's early diversification strategy, with the consolidated portfolio outperforming the Company's GB fleet by c.3x, based on average revenue per MW during the period. The portfolio build-out continues to progress following September's energisation of 79.9 MW of additional capacity.

The Board continues to monitor the current GSF share price volatility. The Board and the Investment Manager confirm that they are not aware of any portfolio-specific factors that have led to the recent sharp decline in the share price. The Board believes that the discount to Net Asset Value at which the Company's share price currently trades materially undervalues the Company and its portfolio. The Board maintains confidence in the quality of the assets across the five international energy markets, which continue to perform strongly, underpinning the dividend.


https://www.investegate.co.uk/announcem ... e-/7811441

Ian (No holding).


I do hold and the share price performance has been atrocious, but almost entirely accounted for by the increase in the discount as NAV has been pretty stable. I like them because of the geographical spread of their assets and the fact that the storage capacity should be increasing over the next year as new projects start to come on stream which should lead to increasing revenues. They have no debt at the moment, which is good considering the interest rate environment. They are now profitable though the dividend is not covered by EPS, hopefully that will change as more projects come onstream this year. Looking at charts GRID seems to have performed in a similar manner, so its not company specific. The question is should I be topping up when the discount is so high, good chance of price appreciation and a very good dividend whilst I wait, or is the high discount a warning that the market knows something I'm not taking into account?

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Re: Gore Street Energy Storage Fund PLC (GSF)

#622628

Postby idpickering » October 24th, 2023, 7:18 am

$60m Finance Facility for California Project.

Gore Street Energy Storage Fund plc, the internationally diversified energy storage fund, is pleased to announce that Big Rock ESS Assets, LLC, GSF's 100% subsidiary and owner of the 200MW / 400MWh Big Rock project in California, has secured an initial $60m loan financing from First Citizens Bank. The loan will be used to fund the remaining capital costs of the Big Rock project, which, to date, has been funded with GSF equity. The loan allows GSF to allocate capital to other portfolio projects and to maintain its portfolio diversification standards. The loan is for an initial 3-year term and is expected to be refinanced with longer-term project finance once the project becomes operational.


https://www.investegate.co.uk/announcem ... ct/7834503

Ian (No holding).

idpickering
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Re: Gore Street Energy Storage Fund PLC (GSF)

#633869

Postby idpickering » December 14th, 2023, 7:13 am


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Re: Gore Street Energy Storage Fund PLC (GSF)

#633876

Postby daveh » December 14th, 2023, 8:22 am

Some detail:

Strong performance and positive revenue trends continue



Operational highlights:

· The portfolio generated £19.3m of revenue during the period, amounting to £12.2m in operational EBITDA.

· During the September-end quarter, the Company generated operational EBITDA of £8.3m, resulting in an operational dividend cover of 1.15x.

· For the six month period, total portfolio revenue per MW per hour was £15.10, with non-GB assets achieving 2.6x more revenue than the GB portfolio, underscoring the benefits of the diversification strategy:

§ GB revenue: £7.54/MW/hr

§ Non-GB revenue: £19.66/MW/hr

· The 79.9 MW Stony asset was energised during the reporting period.

· Energisation and commencement of commissioning for the 49.9 MW Ferrymuir asset is awaiting completion of grid connection works.

· The Company's cash balance as of 30 September was £75.0m with a further £13.9m held across its subsidiaries, sufficient to meet all outstanding contractual commitments.

· As at 30 September, Fund level gearing remained at 0%.

· Additional project-level debt funding of $60m secured post-period through a First Citizens loan to support the build-out of the Company's 200MW / 400MWh Big Rock asset in California. Between the Santander and First Citizens facilities, GSF has available debt financing of c.£99.0m. If fully drawn, total debt would represent c. 15% of GAV.



Net Asset Value (NAV):

The Company continued to demonstrate strong operational performance. However, adjustments to short-term inflation and discount rates (+25bps) reflecting the macroeconomic landscape drove a decrease in NAV:



· NAV as of 30 September 2023 was £543.3m or 112.9 pence per share, bringing NAV total return since IPO to 48.8%.

· Despite the NAV per ordinary share decrease of 2.3% to 112.9p (115.6p as at 31 March 2023), NAV total return for the period, including the 3.5p in dividend payments, remained positive at 0.7%.

· Portfolio valuation increased by 8%.



and a 2.0p dividend:


Dividend Declaration

The Company's Board of Directors has approved a dividend of 2.0 pence per share for the September end quarter. The ex-dividend date will be 28 December 2023, and the record date of 29 December 2023. The dividend will be paid on or around 12 January 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 2.0 pence per share, 1.15 pence is treated as qualifying interest income.


Though 1.15p is treated as interest. First time I've noticed this for GSF, but it also appeared for GRID I think. Can anyone explain why? Not a problem for me as GSF are held in my ISA, but I'd be unhappy if they were in my GIA account as my interest allowance is full plus interest is taxed higher than dividends.

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Re: Gore Street Energy Storage Fund PLC (GSF)

#634936

Postby daveh » December 19th, 2023, 8:39 am

Issue of lots of shares to an EPC contractor at the NAV and signing of an EPC contract:
https://www.investegate.co.uk/announcem ... ed/7949926

Gore Street Energy Storage Fund plc, the internationally diversified energy storage fund, is pleased to confirm the selection of Nidec Motor Corporation ("Nidec") as the Engineering, Procurement, and Construction (EPC) contractor for its Texas-based energy storage asset "Dogfish". The 75 MW asset will initially be built with a one-hour duration, while the design allows for future retrofitting to extend the duration should it be determined in the future that the additional potential revenue from a two-hour system justifies the related additional cost.

The contracts include the EPC agreements and Operations and Maintenance (O&M) contracts. The contract is fully wrapped, including warranties for availability and energy capacity.



Nidec Strategic Partnership and Subscription for Ordinary Shares

The Company is pleased to announce that, as part of the long-term strategic partnership with Nidec, Nidec will be subscribing for 14,000,000 new ordinary shares in the capital of the Company (the "Ordinary Shares") at 112.9 pence per Ordinary Share, being the 30 September 2023 NAV announced on 14 December 2023, resulting in gross proceeds of £15,806,000 to the Company. Nidec's Ordinary Shares will be subject to a lock-up arrangement which prevents it, save in certain specified circumstances, from disposing of any of its Ordinary Shares for the six-month period after Admission (defined below). After the end of this period, Nidec is able to dispose of up to 50% of its Ordinary Shares. After twelve months from Admission, Nidec would then be able to dispose of any remaining amount of its Ordinary Shares held at such time.



So NIDEC are investing at a premium to todays price of 85p. Seems a good way to raise some extra cash.

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Re: Gore Street Energy Storage Fund PLC (GSF)

#639324

Postby idpickering » January 10th, 2024, 7:42 am

Portfolio and Trading Update

Gore Street Energy Storage Fund plc, the internationally diversified energy storage fund, is pleased to share an update for the FY Q3 ending 31 December 2023. The quarter continued to highlight the stability of the Company's revenue, with the consolidated portfolio generating an estimated £15.1/MW/hr, consistent with the £15.1/MW/hr generated during the prior six months to 30 September 2023. In addition, operational capacity increased by 27% and a new strategic partnership with Nidec was established with 14,000,000 new Ordinary Shares issued at NAV. The Company closed the quarter with continued strong performance and a positive outlook from the Investment Manager.


https://www.investegate.co.uk/announcem ... e-/7982216

Ian (No holding).

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Re: Gore Street Energy Storage Fund PLC (GSF)

#642336

Postby PrefInvestor » January 24th, 2024, 11:59 am

Things are not going so well for the 3 BESS trusts (GSF, HEIT & GRID). All are suffering from problems with the Balancing Mechanism in the UK which is limiting their revenues and hence profitability. None are doing well from a share price perspective and haven’t been for a good while now.

GSF at least benefits from international diversification with operations in Ireland, Texas & Germany as well as the UK. And they recent had an influx of cash via a deal with Nidec Motor Corp, who bought 14M shares at full NAV of 112.9p, though this seems to have done little to help the share price.

And dividend cover for their 7p dividend seems in question at this time, certainly the September 23 results presentation would seem to indicate that there might be a problem.

Build out of the GSF portfolio continues but in 2024 the most immediate enhancement looks to be Enderby in the UK which should come into operation in June 2024 – but the effect of this might be limited if problems with the UK Balancing Mechanism continue ?.

I have held all 3 of these BESS trusts in better times but progressively exited as they fell to preserve my capital. Put my toe back in the water to a small degree with GSF back in December 23 but its fallen significantly again since then so I’ve just sold out again today 24/1/24. Really not sure where the bottom is for these trusts and do not want to re-visit last years low of ~61p.

They will probably all soar now !.

ATB

Pref (no holding now)

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Re: Gore Street Energy Storage Fund PLC (GSF)

#642350

Postby daveh » January 24th, 2024, 1:09 pm

PrefInvestor wrote:Things are not going so well for the 3 BESS trusts (GSF, HEIT & GRID). All are suffering from problems with the Balancing Mechanism in the UK which is limiting their revenues and hence profitability. None are doing well from a share price perspective and haven’t been for a good while now.

GSF at least benefits from international diversification with operations in Ireland, Texas & Germany as well as the UK. And they recent had an influx of cash via a deal with Nidec Motor Corp, who bought 14M shares at full NAV of 112.9p, though this seems to have done little to help the share price.

And dividend cover for their 7p dividend seems in question at this time, certainly the September 23 results presentation would seem to indicate that there might be a problem.

Build out of the GSF portfolio continues but in 2024 the most immediate enhancement looks to be Enderby in the UK which should come into operation in June 2024 – but the effect of this might be limited if problems with the UK Balancing Mechanism continue ?.

I have held all 3 of these BESS trusts in better times but progressively exited as they fell to preserve my capital. Put my toe back in the water to a small degree with GSF back in December 23 but its fallen significantly again since then so I’ve just sold out again today 24/1/24. Really not sure where the bottom is for these trusts and do not want to re-visit last years low of ~61p.

They will probably all soar now !.

ATB

Pref (no holding now)


I still have a large (for me) holding down about 30% capital wise, or 19% if you include dividends received. Most of the capital loss seems to be from the trust moving to a significantly large discount to NAV. I like that they are internationally diversified as the non UK assets seem to be making significantly more money than the UK assets and there should be significantly more assets coming on stream this year which will hopefully bump up the income required to pay the dividend. If the discount starts to decrease that would help (which may happen as interest rates fall). We need the storage if we are going to move to net zero, but we need it to be paid for fairly.

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Re: Gore Street Energy Storage Fund PLC (GSF)

#642463

Postby PrefInvestor » January 25th, 2024, 7:17 am

daveh wrote:I still have a large (for me) holding down about 30% capital wise, or 19% if you include dividends received. Most of the capital loss seems to be from the trust moving to a significantly large discount to NAV. I like that they are internationally diversified as the non UK assets seem to be making significantly more money than the UK assets and there should be significantly more assets coming on stream this year which will hopefully bump up the income required to pay the dividend. If the discount starts to decrease that would help (which may happen as interest rates fall). We need the storage if we are going to move to net zero, but we need it to be paid for fairly.

Well daveh personally I wouldn’t be happy with your achieved performance if it were on a large holding in my portfolio. Personally I manage my portfolio to try and preserve my capital, I deliberately avoid having any really large holdings and if any deliver worse than a 10% total return at any point then I sell and invest elsewhere. My small GSF buy in December passed that rubicon a while back so I was just following my strategy.

I like GSF and feel it is the best of the 3 BESS trusts, I had a larger holding (for me) when they were on the up. Sadly the interest rate rises appear to have scuppered their financial performance, for the moment anyway. As for revenue improvements in 2024 looking at Table 7 of their 2023 Final Report in the short term things look like they might get worse before they get better looking at Mar-end figure, which I assume is for 2024. Table 9 shows two new sites coming on stream in June 2024 (57Mw and 60Mw) but the biggest improvement (200Mw in Texas) doesn’t come on stream until December 2024.

I wish you ATB with your investment and hope things improve from here, though I note that all 3 trusts were down again yesterday (24/1) GRID by over 6% (gulp).

ATB

Pref

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Re: Gore Street Energy Storage Fund PLC (GSF)

#642895

Postby PrefInvestor » January 27th, 2024, 6:57 am

Just received this Citywire article by email which probably explains the dire performance of the BESS trusts:-

https://citywire.com/investment-trust-i ... er%20Daily

See page 3 of 5 within this article. You may need a citywire account to read this but they are free.

ATB

Pref

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Re: Gore Street Energy Storage Fund PLC (GSF)

#643016

Postby Coobster » January 27th, 2024, 3:24 pm

I've held GSF since October 2022. The SP has fell away since then, impeccable timing! The current dividend yield is 10.5% so that's unsustainable.
If the dividend pay out is halved, at the very least, I wouldn't be surprised if the SP goes lower than this year's low of 60.5p

I'll just hang on and see what happens, all being well the SP will pick up gradually from 2025 once they get an increase in their revenue streams.

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Re: Gore Street Energy Storage Fund PLC (GSF)

#643083

Postby PrefInvestor » January 27th, 2024, 6:26 pm

Coobster wrote:I've held GSF since October 2022. The SP has fell away since then, impeccable timing! The current dividend yield is 10.5% so that's unsustainable.
If the dividend pay out is halved, at the very least, I wouldn't be surprised if the SP goes lower than this year's low of 60.5p

I'll just hang on and see what happens, all being well the SP will pick up gradually from 2025 once they get an increase in their revenue streams.

Well you are very patient Coobster, a lot more patient than I am with poor performance !.

ATB

Pref

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Re: Gore Street Energy Storage Fund PLC (GSF)

#643111

Postby clissold345 » January 27th, 2024, 8:32 pm

GB revenue fell last year. It was £15.188M, compared to £16.43M the previous financial year. Are GB prices falling, and will they fall further? (I realise that GSF operates in Ireland, Western Europe, and the United States, as well as GB.)

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Re: Gore Street Energy Storage Fund PLC (GSF)

#643421

Postby PrefInvestor » January 29th, 2024, 2:40 pm

GRID, GSF & HEIT all down again today 29/1/24. HEIT getting really pummeled, down about 19% (!) as I write this. No RNSs issued that I can see ATM. These trusts just cant catch a break ATM it seems....?

ATB

Pref

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Re: Gore Street Energy Storage Fund PLC (GSF)

#643540

Postby PrefInvestor » January 30th, 2024, 4:30 am

This website provides an interesting summary of recent developments in the UK battery storage sector:-

https://modoenergy.com/research/q4-upda ... y-services

To me the story looks to me to be one of soaring battery capacity and falling revenues in part due National Grid ESO introducing more efficiency into the Balancing Mechinism which seems to have resulted in lower prices.

Several websites now produce detailed performance and pricing related data for UK BESS systems, though I confess I have as yet been unable to correlate the performance of GSFs BESS systems provided here with information contained in their published financial results.

https://www.bessanalytics.com/performance

https://forecastdocs.modoenergy.com/doc ... orecasting

While the increase in UK battery storage looks to be incredible (which is good in many ways) it doesn’t appear to be working to the advantage of the BESS trusts and personally it looks to me as if the huge ramp up in capacity is in fact damaging their revenues ????

ATB

Pref

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Re: Gore Street Energy Storage Fund PLC (GSF)

#643542

Postby PrefInvestor » January 30th, 2024, 6:52 am

Oh and the Bess analytics site linked in my previous post seems to show that there are many more players in the market now than just the three BESS trusts. Check out the Assets tab for a list of the assets and operators. Guessing that thus is negative for BESS trust revenues also.

ATB

Pref

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Re: Gore Street Energy Storage Fund PLC (GSF)

#643564

Postby clissold345 » January 30th, 2024, 8:40 am

The recent hooha (I mean the fall in the sp) seems to have been caused in part by a Jefferies analyst Note published on 25th Jan 2024. I don't have access to the Note but someone posted it on Advfn.

Regarding the Balancing Mechanism, it's supposed to lead to improved GB revenue in time. The Jefferies Note says:

"We also recognise that the positive impact to revenues from the balancing mechanism reforms will be gradual, meaning investors may need to wait until next winter to see a meaningful improvement in trading performance."

I hold (though detailed analysis of GSF's business seems to require technical knowledge that I do not have).

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Re: Gore Street Energy Storage Fund PLC (GSF)

#643708

Postby Coobster » January 30th, 2024, 4:41 pm

PrefInvestor wrote:
Coobster wrote:I've held GSF since October 2022. The SP has fell away since then, impeccable timing! The current dividend yield is 10.5% so that's unsustainable.
If the dividend pay out is halved, at the very least, I wouldn't be surprised if the SP goes lower than this year's low of 60.5p

I'll just hang on and see what happens, all being well the SP will pick up gradually from 2025 once they get an increase in their revenue streams.

Well you are very patient Coobster, a lot more patient than I am with poor performance !.

ATB

Pref

Well Pref,
after some more thought, I've reluctantly bailed out of GSF. The SP is continuing to go down. Whilst I would like to have continued to hold, after a 30% loss it was certainly time to sell. Probably should have sold when the SP rebounded a bit a few weeks ago. I hope to buy again one day.
Sale proceedings used to top up HG Capital Trust (HGT - Private Equity Trust), Segro (SGRO) and Scottish American (SAIN).

Best regards
Coobster


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