Gore Street Energy Storage Share Discussion Threads

[pretax2] 15/11/2024 09:41

Companies need debt to grow. With the shareprice below NAV they can’t print shares, so debt is the only way to go for now. We now have the ‘facility̵7; in place as and when needed. The decline in rates will help. In addition we are on the cusp of a marked increase in revenue. Hopefully this will enable GSF to grow organically by the end of 2025.
Time to go for Japan.

[scruff1] 15/11/2024 09:06

Sounds like a case of 'thats us sorted, we are all right Jack'. Gets me when they say they are pleased to announce more debt - I bet they are. Was expecting to hear more about revenue rather than twice as much debt FFS. If they fund our divi through debt then that would be a new low !! Only positive is that they have found someone willing to lend em more than a peppercorn - they are getting no more off me. Is discount upto 100% yet? Ive given up looking at yield - its pointless - if investors arent attracted to it at this level its because they think its the classic total duffer. They have certainly taken any shine off the expected soon to be announced revenue from Big Rock. Depressing

[spectoacc] 15/11/2024 07:34

Jam tomorrow as always with GSF, but RNS reads well:


"GSF has maintained by far the lowest debt-to-GAV ratio compared to peers..."

"The Company has continued to execute against the targets set out to investors. With the Resource Adequacy contract secured earlier in the month, providing over $165.0 million of contracted revenue over the life of the contract, and the securing of these facilities, we are well-positioned for the future. I look forward to updating the market regularly over the coming months with news of the energisation of the three remaining construction projects, followed by the ITC cash inflow shortly thereafter."

[waterloo01] 15/11/2024 07:29

Well banks are willing to lend on the assets, so hardly valueless as some have suggested.

[george stobbart] 15/11/2024 07:20

They added more debt

GSF is now the most indebted fund in the history of capitalism

[pretax2] 14/11/2024 17:16

If the alternative is zero mW or backup; I guess they could hold to ransom.

[kernelthread] 14/11/2024 15:18

That's when you'll find out what the NAV really is - if it gets wound down. How much cash is someone actually willing to hand over for the assets?

[kev0856153] 14/11/2024 15:18

is anyone still holding this pish?

[pretax2] 14/11/2024 15:14

A wind down with the NAV at double the share price
Interesting. 🤔

[george stobart] 14/11/2024 13:23

23p is the new fair value based on an inverse hot wedge

[spectoacc] 14/11/2024 13:17

Grim tho GSF (& many others) are atm, have avg'd a few - the assets have value, it's streets ahead of eg GRID/GRIO, & if it keeps falling it'll be in play eventually.

[pretax2] 13/11/2024 23:51

Well the mood music is definately positive on the IRA so far:

hxxps://www.akingump.com/en/insights/alerts/energy-policy-priorities-for-the-119th-congress-and-trump-administration

[From para 2 if you know what the IRA is]

The IRA expanded and extended federal tax credits for the deployment of clean energy technologies and manufacturing. The federal tax credits are available for solar, wind and other renewable generation projects. The IRA expanded available tax credits to include energy storage, carbon capture, the production of hydrogen, clean fuels and manufacturing of qualifying solar, wind and battery components, inverters and critical minerals. The IRA also established for the first time a right to transfer or sell the tax credit for cash, which has resulted in numerous transactions involving buyers across numerous industries. It has been estimated that $9 to 11 billion in tax credit sales occurred in the first half of 2024 which is expected to increase to $25 billion by the end of the year. The risk of material changes to the tax credits may chill investment in new projects pending resolution of these policy matters.

There are five key take-aways for investors. First, the Trump administration will need strong support in Congress to repeal or materially amend the IRA and such support is not necessarily assured. Although repeal of the IRA aligns with broader Republican priorities, some party members, especially those from red districts where the IRA has spurred job growth and attracted multibillion-dollar investments, may resist its complete repeal. In August, Representative Andrew Garbarino and 17 other Republican lawmakers sent a letter to speaker Mike Johnson urging that lawmakers “prioritize business and market certainty” in considering a repeal. The letter continues: “[p]rematurely repealing energy tax credits, particularly those which were used to justify investments that already broke ground, would undermine private investments and stop development that is already ongoing.” Speaker of the House Mike Johnson (R-LA) stated in a September interview that it would be impossible to “blow up” all of the IRA and referenced the need to use a “scalpel rather than a sledgehammer.” Elements of the IRA that may garner broader Republican support include tax credits for established clean energy technologies like solar, onshore wind and energy storage as well as the advanced manufacturing production tax credits under Section 45X with respect to the manufacturing of qualifying solar, wind and battery components, inverters, critical minerals and carbon capture, utilization and storage (CCUS).

Second, any repeal is unlikely to be retroactive. According to the Energy Information Administration, in 2023, more than 40 gigawatts (GW) of new electricity generation was from non-carbon emission sources or battery technologies, exceeding deployment in all previous years. Projects that achieve key milestones before any repeal are unlikely to lose benefits under the IRA. We expect investors to accelerate development efforts necessary to “earn” benefits under the IRA before any repeal.

Third, sponsors will continue to make substantial investments in renewable energy, particularly solar and battery energy storage systems, during the next Trump administration. While debate over the IRA will continue, state-based renewable procurement requirements and other state-based incentives will continue to support development. In addition, as was the case in the last Trump administration, strong interest in the procurement and use of renewables by U.S. tech companies and other large corporates in the U.S. will continue to drive growth in renewables. Climate advocacy will not cease but will instead shift in focus from advocating for congressional action and Executive Orders, to shareholder activism, voluntary programs and ensuring companies uphold their existing commitments. Corporations are not expected to abandon their climate commitments as a result of the change in administration, despite likely changes in the way they publicly talk about those commitments.

[scruff1] 13/11/2024 22:08

Doesnt seem long ago 60p was seeming a tad too pessimistic. Now its looking like next stop on the never ending downward journey is the 40's. Gordon Bennett. What a miserable one way trip this has been. Not quite the one I had in mind when I bought in a few years back. Which is first <10p, >100p or bust?

[cocopah] 13/11/2024 20:34

#pretax2 contrasting opinions is what these boards are for, otherwise they become a ramper’s paradise. Suggesting someone sells up because they hold a different view to yours is puerile and a 50% decline in the share price is not a “bit of turbulence”. 🤷‍a94;️🙄

[pretax2] 13/11/2024 15:29

You’re not wrong Cellular.
COP 29 is encouraging governments to increase energy storage six-fold. Let’s hope they reach agreement on this.
GSF’s global first-mover advantage could pay dividends beyond the 7pps currently on offer.

hxxps://www.climatechangenews.com/2024/09/19/cop29-aims-to-boost-battery-storage-and-grids-for-renewables-as-pledges-proliferate/

[cellular3] 13/11/2024 14:03

More like a snowflake. Happily sold up. Baku sells us our energy.

[pretax2] 13/11/2024 11:45

“Wind hasn’t blown sun hasn’t shone”.
Oh dear! No more wind and sun! Lol
8-)
To be honest, GSF revenues are like a small snowball. As projects complete (and we have some big ones coming up) the snowball grows.
If you can’t be patient and take a bit of turbulence, maybe sell up?

[cocopah] 13/11/2024 10:45

All the talk on here about USA and tax credits in Q1 2025 .. meanwhile a more pressing issue is the latest revenue numbers due … as I understand it, the wind hasn’t blown and the sun hasn’t shone for our U.K. Irish and German assets for much of this quarter AND the Texas assets have witnessed declining income per hour. I dread to think what will be reported in December!

[pretax2] 13/11/2024 10:12

US is a big place, scope for lots of players in the battery space. If Musk promotes battery storage, it’ll be good for the sector generally.
If the ITC gets revoked (and it may not), I imagine Gore Street will pivot to Japan with new projects since they already have a footprint there. They’ve been very quiet about Japan, but I believe investors are in place.

[stargazerspark] 13/11/2024 08:04

Given Tesla make battery storage at massive scale and EVs, it is going to be interesting to see how Musk plays Trump.

[pretax2] 12/11/2024 17:23

Agree, the US tax credit situation which may not be resolved for a while. I'm somewhat heartened by the following comments from Grant Thornton (Management Consultancy) though; especially the final sentence.
--------------------------
hxxps://www.grantthornton.com/insights/alerts/tax/2024/legislative-updates/trump-victory-expands-tax-policy-possibilities

Trump has discussed raising revenue from only a few changes, including repealing the energy incentives from the Inflation Reduction Act (IRA), allowing the enhanced ACA premium tax credit to expire, and imposing a 10-20% tariff on all imported goods and 60% or more rate on Chinese goods. He has not specifically mentioned repealing the new corporate alternative minimum tax or stock buyback tax, though he has been critical of the IRA as whole and these provisions could be targeted. Repealing them would be expensive, however, and could be difficult to prioritize above tax cuts he has more vocally endorsed. He has also been very critical of IRS funding, but reductions in this funding would typically be scored as a net revenue loss by government scorekeepers.

Grant Thornton Insight:

Trump has repeatedly criticized the IRA’s energy incentives, particularly the electric vehicle credit. Repealing these incentives could be a source of revenue for other priorities, but could also prove difficult. Republicans typically have been reluctant to rescind tax cuts, and there is a group of House Republicans who openly support many of the energy measures for the investment it has brought to their districts. Eighteen House Republicans wrote to House Speaker Mike Johnson, R-La., earlier this year asking for the tax incentives to be preserved. In response, Johnson pledged to use a “scalpel”; and not a “sledgehammer&#8221; to address the changes. It would also be unusual for lawmakers to rescind tax cuts for projects that have already begun construction.

[waterloo01] 12/11/2024 13:34

Can't call that, just pointing out that the share price already takes on board a huge amount of the downgrade.

The uncertainty on US tax credits going forward doesn't help.

[stemis] 12/11/2024 13:27

waterloo01,

You think the published 48% discount to 'NAV' makes GSF a 'value stock'?

[cellular3] 11/11/2024 17:37

Think there’s plenty of single share choices that would have been better than gsf or grid. Punished for trying to be sensible but burnt by wokeness unfortunately.