Gore Street Energy Storage Share Discussion Threads

[waterloo01] 10/12/2024 08:38

Gore Street Energy Storage Fund plc responsible investment
Gore Street Energy Storage Fund plc (GSF) is London’s first listed energy storage fund, with a diversified portfolio across five electrical grids. Energy storage is a facilitator of renewable growth worldwide, and plays a crucial role in the UK reaching its net zero target by 2050.

Launched in 2018, GSF is listed on the London Stock Exchange and included in the FTSE All-Share Index. It is one of the leading owners and operators of battery storage facilities in Great Britain and Ireland, and also owns and operates facilities in mainland Europe and the US.

One of the benefits of battery energy storage systems is the ability to balance demand and supply of power. Storing excess electricity when supply from renewables exceeds demand avoids curtailment and allows these clean energy sources to contribute a greater proportion of electricity. This reduces the need for fossil fuel-based power and can help to bring down CO₂ emissions from the energy sector.

GSF’s investment in battery energy storage systems, therefore, plays an important role in green energy transition.

[craigso] 04/12/2024 21:07

Total Energies sold 50% of its 2 GW Texas solar and BESS portfolio for $800m. It probably won't be possible to strip out the value of BESS from that, but it still should support US solar + BESS valuations...

hxxps://www.businesswire.com/news/home/20241204525619/en/Integrated-Power-Renewables-TotalEnergies-Implements-its-Strategy-of-Capital-Recycling-with-an-Acquisition-in-Germany-and-a-Farm-Down-in-the-US

[cruelladeville] 03/12/2024 16:01

Thank you, a sensible post. I'm still hurting from experience of HEIT so I'm not sure I want any more BESS. But I'm maybe only 50% convinced. I could see me buying GSF if it felt right. I looked at the numbers here and I need ~88p to break even on HEIT. I expect a loss but much less than I might have expected few months ago.

[craigso] 03/12/2024 14:14

CdV

Once the HEIT winning bid is announced, its share price should jump up to be a bit below the agreed price. You'd have the choice of selling out then, instead of waiting for the deal to actually complete.

I hope that GSF will rally as well. But since the UK is only part of the GSF portfolio, the % jump probably won't be as large.

In my opinion you'd make more money waiting for the HEIT sale then reinvesting the proceeds here. (assuming you want to stay invested in BESS)

[cruelladeville] 03/12/2024 10:05

I have been mulling over swapping my miserable HEIT holding for a holding of GSF. But I guess if Harmony gets a good price for it's assets that will reflect both at GSF and GRID. So by the time a deal at Harmony is done and dusted it'll be sometime before HEIT shareholders have cash in their pocket to spend.

[craigso] 03/12/2024 09:44

The share price is a bit frisky today. Perhaps the market is slowly waking up to the fact that GSF is undervalued relative to what HEIT and GRID are trading at - not to mention that HEIT might totally reset the market for UK BESS valuations.

Oak also helpfully pointed out that ENGIE are going after BESS like crazy. There's enough geographical overlap for them to consider having a go at buying GSF whole, especially if they are one of the losing participants in the HEIT process...

[mirandaj] 03/12/2024 06:44

Definitely worth reading.

[cruelladeville] 02/12/2024 19:34

Update today from Oak Bloke, worth a read.

[uzes] 02/12/2024 10:00

Oh yes....although there was I recall a small reduction after we voted to wind it up (but only small). I know the various parties here quite well (as you probably know they were previously Hazel capital). To be balanced....I have invested in both their VCTs and several EIS solar vehicles (when EIS was allowed) and they did very well (EIS only has a 3 year life...so they built them and flogged them straight away - mostly to the listed ITs) and thankfully the assets were sold as demand was very robust. Of course ITs aren't raising money so this buyer has fallen away. However with this VCT it's a different story...and has been disastrous in last few years. Demand for these older assets (poor quality compared with new and tend to be of smaller size....hence no economies of sale) is poor and hence the prices are poor....and thus the pain. I will be glad when its gone and I get some £ back.

[solarno lopez] 02/12/2024 09:48

But the Manager will have been paid his fees UZES ?

[uzes] 02/12/2024 09:37

This RNS is referring to GV10 and GV20 - 2 long standing VCTS that they have been trying to wind up for 2 or 3 years. Been difficult to sell the assets (to say the least). This is the remaining lump of ground solar..... You cannot infer anything from this RNS for GSF - chalk and cheese. I have had these VCTs for years...first 5 years good...second 5 years pretty bad. This final write down is a slap in the face after the write offs in last 2 years. Not great.

[spectoacc] 02/12/2024 08:19

Can't see a single storage asset in GH20 - ground & roof mounted solar, and wind.

[sleveen] 02/12/2024 08:04

and also the same with the GSF VCT 1

[waterloo01] 02/12/2024 07:53

Does this suggest a 25% discount, not 50%?


GRESHAM HOUSE RENEWABLE ENERGY VCT 2 PLC

(the "Company")

Company Update including Sale of Remaining Assets and Dividend

Following the Company's announcement dated 27 September 2024, the Board continues to progress the sale of the Company's remaining assets.

The net sales proceeds for these assets are expected to be 20% to 25% lower than the net asset value reported as at 31 March 2024. A further detailed announcement will be made at the time of sale or when the Annual Report for the year ended 30 September 2024 is published at the end of January 2025, whichever is earlier.

[craigso] 01/12/2024 08:51

@Alan,

Thanks for sharing that analyst quote. Indeed the eventual HEIT sale price puts pressure on GRID either way. A "full" price and GRID can't really argue that asset sales aren't a better option than whatever it's doing at the moment. A "low" price and it can't defend its NAV any longer.

If GSF is clever enough to approach one of the losing HEIT bidders to sell a UK asset or two near NAV, they would earn enough credibility to narrow the discount quickly, IMO. Reducing exposure to the UK isn't existential for GSF.

[waterloo01] 30/11/2024 10:33

Good point.

[alan pt] 30/11/2024 10:18

Interesting to read the Citywire GRID update today alongside the analysis by @craigso in #2075

@craigso "...£333k / MW is ridiculously low. We'll see what HEIT sells itself for, but it's likely to be at least double that number (per MW)."



"‘Frankly, what happens with Harmony is more important to GRID. A sale of a 2hr asset at £750k per MW or less will heap pressure on the board and manager given their defence of valuations,’ he (Stifel’s Sachin Saggar) said."

If <£750k/MW is a potential "bad price" then that would seem to confirm that the market valuation of GSF is way too low.

[pretax2] 29/11/2024 14:05

Thanks for your insight.
The company has good prospects and, like you say, the shareprice is for the birds.
A good time to buy, so I added this morning. Happy to take a bit of volitility moving forwards (along with dividends of course).

[cellular3] 28/11/2024 10:37

Gsf graph reminds me of when Unicron said to Galvatron “proceed on your way to oblivion”

Could have made more money buying and selling transformers than with this stock

[waterloo01] 27/11/2024 15:16

scruff, see wskil post above

It is intended the amount of the final quarterly dividend (announced in June and paid in July) will make up the balance of the annual dividend target subject to cash flows at the time. As with the current dividend policy, all dividends remain at the discretion of the Board.

[cruelladeville] 27/11/2024 15:13

Yes, at HEIT I think a sale price of >70p a share should be realistically obtainable. I am a bit surprised the shares are languishing at ~50p actually. There's no news leaking out from HEIT which might suggest there isn't anything worth leaking about.

[scruff1] 27/11/2024 14:54

I thought it was going to be announced in the results on the 12th whether the divi was to be 6p or 7p. Am I wrong?

[craigso] 27/11/2024 13:03

@stargazer

Indeed NAV is just a number until realised. And I own a couple of ITs where even cash realisations haven't fully flowed through to the share price, even with major buybacks announced.

There's enough M&A activity in the power sector for possible realisations to remain an important factor in placing a floor on value. Unfortunately our next continuation vote is in 2028, so the investment manager doesn't really have to consider selling assets for a couple of years. But an asset sale to fund growth might end up on the table - once the upsized RCF is spent.

But I still reckon that a hedge fund or similar could buy GSF for 80p and sell the component parts for 100p+. HEIT should soon show what UK BESS can be sold for...

[skinny] 27/11/2024 12:55

Thanks both of you.

[wskill] 27/11/2024 12:48

New dividend policy as below.

Dividend Policy

We remain committed to regular capital allocation reviews and comprehensive analytical assessments, while remaining receptive to shareholder feedback, to ensure the Company continues to be managed effectively for investors. Following this year's review, the Board has decided to adjust the Company's dividend policy to better align it with the construction schedule of the portfolio.

It is the Directors' intention to continue to pay, in the absence of unforeseen circumstances, a dividend of 7.0 pence per ordinary share for the financial year subject to market conditions and performance, financial position and outlook, and fiscal environment. This is consistent with investors' expectations based on the current NAV but, from the 2024/25 financial year, the profile and quantum of dividend distributions will be more closely aligned with operational and other cashflows rather than NAV.

Moving from roughly equal payments across all quarters, the Board has determined to target a dividend of 1.0 pence per Ordinary Share for each of the first three quarters of the financial year. It is intended the amount of the final quarterly dividend (announced in June and paid in July) will make up the balance of the annual dividend target subject to cash flows at the time. As with the current dividend policy, all dividends remain at the discretion of the Board.

This is a prudent adjustment to the dividend policy reflecting the maturing nature of the Company's portfolio, with a transformative year for increasing operational and revenue-generating capacity.