Triple Point Energy Effi... Share Discussion Threads

[jonwig] 02/9/2022 07:44

New thread:



A quick re-rating? I suppose that's part of their plan.

[jonwig] 01/9/2022 09:24

Will start a new thread tomorrow - I hope.

[davebowler] 01/9/2022 09:20

The Board of Directors is pleased to announce that, following approval by shareholders at the AGM on 25 August 2022, the Company has changed its name to Triple Point Energy Transition plc

[cc2014] 31/8/2022 14:43

New Ticker from today TENT.

L2 still picking up date from TEEC. Trades is not.

[jonwig] 02/8/2022 20:12

Change of name to Triple Point Energy Transition Plc. EPIC is TENT.

Probably means old EPIC won't pick up data. Hence new thread needed.

Will be voted on at AGM on 25/08.

[cc2014] 21/7/2022 13:58

I read the annual report today.

Not much to comment on really.

The average discount rate is 6.11%

Trade debtors are very small and suggest APS are paying all their bills in a timely manner, which gives me some comfort.

I like the new battery storage investments.

[cc2014] 24/6/2022 12:10

Thanks for your post Dave.

I hadn't really thought about the liquidity affecting the share price but it makes sense. As the fund becomes more mature this will improve.

I think it's a sign of how much the markets are struggling that the share price hasn't ticked up slightly to close the NAV gap on these results. The results are unexciting, predicable and offer some minor assurance over APS Salads.

[davebowler] 24/6/2022 10:24

Liberum;
5% FY2022 NAV TR and investment policy amendments

Mkt Cap £90m | Share price 90.0p | Prem/(disc) -6.4% | Div yield 6.1%

Event

Triple Point Energy Efficiency Infrastructure's NAV per share at 31 March 2022 was 96.1p, reflecting a 4.9% NAV total return in the 12-month period. NAV performance was driven by a c.9% revaluation gain on the hydro assets acquired during the year. The uplift was due to increased inflation and power price forecasts.

£100m was committed across new investments in the period:

Battery storage - £46m debt facility commitment to Virmati Energy to build out a 110MW portfolio of four battery storage assets
Hydro - £46m deployed in the acquisition of nine hydro electric power projects in Scotland
CHP - £8m debt investment in Spark Steam (owner of combined heat and power asset)
In addition, TEEC had an existing investment of £21m in a senior debt position secured on two CHP assets on the Isle of Wight. The portfolio value at the period end was £78.8m. Adjusting for the £45.6m commitment to Virmati Energy, the portfolio value would be £124m.


The weighted average contract length of the operational assets in the portfolio is 31.6 years. 96% of the revenue from the hydro portfolio comes from Feed in Tariffs and PPAs. Revenues from the hydro portfolio were 10% above budget in the six months to 31 March 2022. The profitability of the CHP assets in the Isle of Wight was ahead of budget due to higher power prices. Due to the relatively slow pace of deployment, dividend cover from operational cash flow was 0.14x in the year to March 2022.

The company has reported a wider pipeline of £500m across a range of sub-sectors (energy storage, solar, combined heat and power, EV charging, lighting, heat networks).

Separately, The company has announced a proposed amendment to its investment policy to broaden the mandate to focus on the energy transition sector. The amendments would also allow the company to invest in Europe, but the UK will remain the core focus of the strategy. A consultation process has been initiated with some of the larger shareholders. Under the proposals, the company would also change its name to Triple Point Energy Transition. The proposals will be subject to a shareholder vote at the AGM in August.

Liberum view

The key driver of the company's 4.9% NAV total return in the year was an upward adjustment to inflation assumptions on the hydro assets. This added 5.1p to NAV in the period. The current discount to NAV reflects concerns over the relatively slow pace of deployment and liquidity in our view. Deployment should not be an issue in future following recent commitments. The proposed amendments to the investment policy seem reasonable and it is likely to be more appropriate given the assets that have been acquired to date and the investment pipeline.

[cc2014] 24/6/2022 08:24

Results out. NAV up a small amount to 96.12p and the 6% discount to NAV seems a little harsh.

A good day for me. I have been concerned that TEEC might have got themselves into a difficult contract with APS Salads for the CHP plant but it turns out to be the best performing part of the portfolio, as although gas prices are high, the revenue is even higer.

[davebowler] 14/4/2022 12:59

Hear from Jonathan Parr on Triple Point Energy Efficiency Infrastructure Company plc (TEEC), available now on the Doceo Group platform -

[jonwig] 05/4/2022 07:22

The renewables assets (mostly hydro) provide FIT income which is RPI-linked. Some of their other CHP assets are in the form of fixed-income loans. So they don't claim perfect linking by any means, and in fact cite inflation as a risk in their last (H1) results.

Cap and collar is pretty normal with property rental, as you don't want to force your tenant into bankruptcy.

I'm a bit concerned about the Spark Steam loan, which is linked to the UK's largest glasshouse tomato grower. There is no doubt dependence on gas prices, and a small glasshouse tomato grower in Suffolk went bust in January. The loan is secured on assets, but what are these worth if it's uneconomic to grow tomatoes, etc. indoors?

[apollocreed1] 05/4/2022 02:35

Does anyone know about the income that TEEC receives, if it is inflation-linked and if that link is subject to a cap and collar (in which case it's not that much of an inflation link)?

[cc2014] 07/2/2022 11:02

Decent buy by the investment manager recently.

[cc2014] 01/2/2022 13:35

AEET needs winding up.

Or I'd settle for a new fund manager

Or a takeover at NAV by SEIT or JLEN

[jonwig] 01/2/2022 11:18

Aquila could be interesting if the BoD gets proactive and calls a vote to dissolve.

[pob69] 01/2/2022 10:31

Reference to TEEC here

[cc2014] 01/2/2022 08:38

I agree. The RNS surely leads to a increase in the NAV at the next update.

I added to my position this morning.

[jonwig] 01/2/2022 07:20

Operations update:



Clearly designed to allay fears. Judging by the RCF, they'll be keen for the share price to reach a premium to set up a fundraise.

[cc2014] 14/1/2022 16:37

Seller did not appear today so I'll run with some cautious optimism

[cc2014] 14/1/2022 10:09

I would hazard a guess that the share price trading inline with NAV is a natural place for the share price to rest. Certainly a pricing point which would draw some in to take a closer look and for me somewhere to put in an opening position.

The share price has been under pressure recently and it's kind of hard to work out with any confidence what's going on. I would say the first pullback from 110+p to 105p was justified. The share price was getting ahead of itself. The drift down from there to around 100p one could see as just noise in the system. Some of it was dividends being paid out of uncovered income.

In the last trading update we reached the point where the income equalled the dividends which seemed pretty good to me considering all the assets weren't deployed, so from this point on all other things being equal the NAV should have gently risen provided the dividend wasn't hiked. One could of course consider rising interest rate as a negative but as far as I can tell this would be small.

The hydro assets should be doing great. I can't see any downside there, only upside. So, we come to CHP and that may or may not be an issue. I've read the accounts for Spark and APS and I found them acceptable. As a business though APS could be struggling. Increased energy and labour prices. I'm sure with raging inflation they have passed some of the costs on but there always tends to be a drag. Both have enough capital that I cannot see any immediate issues.

So, did the share price fall yesterday due to a fundamental reason or was it just the vagueries of the stock market. Was it stop runnning? Did someone just want the cash for something else? I note the price of UK gas spike up yesterday, maybe it was that? I also note for the conspiracy theorists the timing of the drop matches exactly with the spike down in Bitcoin of $1000 in just a few minutes yesterday afternoon.

Right now the share price has gone stable. 2 hours in and there's no sign of a seller, which is different as they arrived on Wednesday on L2 in the last 10 minutes and were back early doors on Thursday.

Who knows? Yesterday I can see a 55k at 95.75, then another 45k at 96.0p and then finally 68k at 94p. It was the 68k that did the damage and I hopeful since it isn't a round number that's the end of it. My 20k at 95p and the 31413 at 95.5p absorb most of it, so the MM have a bit left. I would think they won't be eager to lift the bid until some time has passed and they are sure the seller has finished.

[getscenic] 13/1/2022 21:04

The APS business worried me, I was in at the IPO and sold out when the NAV was starting to feel built on sand, good luck all

[jonwig] 13/1/2022 17:23

The hydro assets are fully-owned (ie. equity) and they paid an average of £699m per Mw. Another hydro owner (in Sweden) is DORE, which recently bought at £3.8m per Mw. I don't know how comparable the two geographies are. Maybe the payments per MwH are quite different. However, the assets look stable and predictable.

The Spark Steam loan "provided £8m of senior debt finance secured against Spark Steam, the underlying assets, equipment, and contracts. The interest rate is 7.375% per annum, and carries a term of 10.5 years, amortising over the term."

That might be a bit more problematic, as Spark had a decent balance sheet (at 31/03/21) but only £6m of equity, mostly PPE. So the loan might not be fully covered. (Companies House info.) The rate of 7.375% and 10yr-amortising might be tough, but CH don't give a PL account.

The key company for Spark is APS Salads, the largest glasshouse tomato grower in the UK. It decided to cut production last October owing to high gas prices. Maybe it's under even more stress now?

I haven't looked at the other two debt investments.

Another thing maybe needs explanation: why haven't they given the discount rates used in valuing the assets? (Most similar companies do.)

So, being cautious, I'd like to have more information from TEEC, though it is trading in line with NAV now, so maybe has fallen enough for the present?

[cc2014] 13/1/2022 16:11

It's a bit odd. Either someone just wants the cash to invest in something else or someone knows something. The volume going through is small.

The trades are deceving. Some of the reported sells are buys. The 20k at 95p is my buy for example.

But yes the fall appears to be excessive fast. 110p was too high given the NAV, but I'm surprised at how fast it has fallen once 100p went.

All in the mysteries of the stock market.