Gore Street Energy Storage Share Discussion Threads

[spectoacc] 05/2/2024 07:26

OK:


"The GB market's cyclical nature has posed significant hurdles..."

" Based on the build-out schedule, by the end of 2024, the Company's US assets will account for 55% of total operational capacity, while GB will account for less than 30% on a MWh basis."

"...Fully covered its dividend during the last reported quarter (September-end 2023................................................................"
[Hope that was enough dots]

"The Board and Investment Manager of the Company share the concerns expressed regarding the current challenges posed by low revenue generation in the GB market."


GSF undoubtedly the quality play. The question is more whether anyone should be playing. Possibly, at these prices.

[scruff1] 05/2/2024 07:20

I assume thats an RNS. Not come through to me from HL yet but for those that have complained about the lack of communication from the board this is exactly whats needed after last week. Agree totally with you nick.

[nickelmer] 05/2/2024 07:11

solid and positive statement from the board, exactly what was needed. Dividend maintained and highlighting the doubling in size due this year, dividend already covered before this year's planned growth and an excellent geographically diversified portfolio. This is why GORE is THE vehicle for BESS investors

[spectoacc] 05/2/2024 07:11

Personally I'd have picked out the bad parts. I'll summarise as:

"Yeah it's bad, but we're currently OK".

[smidge21] 05/2/2024 07:06

GSF reaffirms its dividend target of 7% of NAV for the fiscal year. It has met its dividend target since listing.· The Company's dividend cover has been trending upward and was fully covered in the last reported quarter (September-end 2023).Revenue generation· Further to the Company's update on 10 January (link here), the reported portfolio average revenue across all assets for the fiscal year-to-date stands at £15.1 per MW/hr (H1 & Q3), given its effective diversification strategy.Liquidity· The Company maintains a healthy balance sheet with low debt. As previously disclosed, the Company had £66 million in cash or cash equivalents as of 31 December 2023. Of the available $60 million in the Big Rock Facility, approximately $15.8 million had been drawn down as of 31 December 2023, and there were no draws on the Company's £50 million RCF with Santander.Portfolio· The Company's construction program is progressing per the schedule outlined on page 11 of its Interim Report (link here). · The Company's operational fleet is on track to more than double by the end of 2024.· Based on the build-out schedule, by the end of 2024, the Company's US assets will account for 55% of total operational capacity, while GB will account for less than 30% on a

[yump] 04/2/2024 20:14

I’ve just noticed that you’re mainly on advfn to make political points and to “score” points, so I’m not carrying on. You believe what you want about climate, immigrants etc. Fine.

Perhaps you could go and do something useful for your community. You certainly seem to “know” about what all the politicians are doing wrong.

Go and implement your answers to it all.

Of course you won’t - less threatening on the sidelines waving a banner and shouting isn’t it.

[yump] 04/2/2024 17:48

.duplicate post

[lord gnome] 04/2/2024 15:32

Greg Smith is just another BANANA.
Build Absolutely Nothing Anywhere Near Anyone.

[daveoz1] 04/2/2024 14:45

This is the attitude to battery energy storage of my marvellous Tory MP, Greg Smith: "I have formally objected to the Statera battery storage installation in Granborough which would devastate the landscape, take away food producing land and bring yet more construction misery to local communities." 'construction misery' eh, ... can't have anyone helping the planet and actually BUILDING anything, can we?!!
If you want to really spoil your day, you can read his 5-page letter to the Bucks planners:
hxxps://www.gregsmith.co.uk/sites/www.gregsmith.co.uk/files/2024-02/Greg%20Smith%20MP%20Statera%20Objection.pdf

[scruff1] 04/2/2024 14:26

Just spotted this in the local press


Plans to build an electricity storage plant on former football pitches in Westhoughton have been put forward.

[scruff1] 04/2/2024 14:16

George
There's next to no chance of following GRID and HEIT who really had no choice

[fordtin] 04/2/2024 12:49

Only three weeks ago;

“10 January 2024
Gore Street Energy Storage Fund plc “

“ the Company aims to deliver consistent and robust dividend yield as income distributions to its Shareholders.”



Alex O'Cinneide, CEO of Gore Street Capital, the Investment Manager of the Company, commented :
".... Looking ahead, we anticipate the Company's most pivotal year yet with operational capacity scheduled to expand to over 800 MW, including 200 MW coming online in the Company's fifth market to date; potential capital recycling; and a strengthening dividend cover from a diverse source of revenue streams. The Company is poised for significant growth and we look forward to updating the market regularly as these plans progress."

[george stobbart] 04/2/2024 12:18

Probably RNS tomorrow morning by GSF on dividend policy.

If they reaffirm we should expect a relief rally.

If they follow the herd GRID/HEIT and cut or postpone, say goodbye to the 60p and will dip in the 50s

[waterloo01] 04/2/2024 09:51

Liberum analyst Alex O’Hanlon recognised that danger but thought it was all priced in. ‘While the revenues in GB remain weak, and we preferred GSF due to its geographic diversification given the expected short term issues in the GB market, we think the market has now overreacted to the weak revenues which presents a buying opportunity.

‘We think the entire sector remains overly discounted (at a c.56% discount to NAV) due to the ongoing problems with the ESO and we expect these discounts to narrow as the revenue environment improves and helped by anticipated interest rate cuts in 2024.’

[rogerrail] 03/2/2024 16:08

Oops, I meant GORE not GRID.

[waterloo01] 03/2/2024 12:22

Luckily GSF has already raised the capital to fund the build out and doubling capacity this year.

Energy storage also attracts very different valuations, esp in the US where much of the capacity build is this year.

[spectoacc] 03/2/2024 11:36

Capacity is partly why there's this current (no pun intended) mess tho, and as much as I think GSF is far and away the best player, they've still got what, 18% in the UK?

The cost of capital is surely going to go up from here for the battery co's.

[waterloo01] 03/2/2024 11:29

Depends. If they reach full divi cover this year and it increases year on year as they bring on more capacity, then it could well move back to a premium to NAV.

[spectoacc] 03/2/2024 11:26

Ultimately, is it cyclical (temporary BESS bump), or is it structural.

Most of us would say it's a temporary bump, but how large a bump, and what happens to the weaker players.

Reminds me a lot of 20+ years ago and fibre optic cable co's. Was as cheap to lay 3 on the seabed as 1, and what should have been a licence to print money quickly became a licence to lose it, with most of the major players going into restructuring.

Years later, as the internet hoovered up capacity, they became valuable assets. But the original capital providers/shareholders weren't the winners.

Not sure that applies to battery storage really, but what is clear is that it isn't the safe investment punters thought, and now needs a decent discount even if it's sunny days from here.