Gore Street Energy Storage Share Discussion Threads

[fordtin] 15/7/2024 09:58

It's not just 0.5p per annum. At current interest rates, knocking a penny off each of the first three quarters has a significant compound effect. They've also left considerable doubt about the Q4 dividend.




Dividend




 
per share


For the 3 month period ended 31 December 2021
2 pence


For the 3 month period ended 31 March 2022
1 pence


For the 3 month period ended 30 June 2022
2 pence


For the 3 month period ended 30 September 2022
2 pence


For the 3 month period ended 31 December 2022
2 Pence


For the 3 month period ended 31 March 2023
1.5 pence


For the 3 month period ended 30 June 2023
2 pence


For the 3 month period ended 30 September 2023
2 pence


For the 3 month period ended 30 June 2022
2 pence


For the 3 month period ended 30 September 2022
2 pence


For the 3 month period ended 31 December 2022
2 pence


For the 3 month period ended 31 March 2023
1.5 pence


For the 3 month period ended 30 June 2023
2 pence


For the 3 month period ended 30 September 2023
2 pence


For the 3 month period ended 31 December 2023
2 pence


For the 3 month period ended 31 March 2024
1.5 pence


For the 3 month period ended 30 June 2024
1 pence


For the 3 month period ended 30 September 2024
1 pence


For the 3 month period ended 31 December 2024
1 pence


For the 3 month period ended 31 March 2025
?

[bountyhunter] 15/7/2024 09:36

7/65 *100 = 10.8% yield so not much change to the yield. I can take the 0.5p reduction from 7.5p so long as they deliver as in the outlook above.

[bountyhunter] 15/7/2024 09:34

Outlook

· Of the 332 MW of assets in construction due to become energised over the next seven months, 275 MW / 475 MWh is eligible to benefit from an investment tax credit (ITC) of between 30-40% of qualifying capital expenditure through the Inflation Reduction Act, which was passed in late 2022.

· The Investment Manager expects the Company to benefit from a cash inflow in the range of $60 million to $80 million.

· This includes the 200 MW Big Rock asset, which, when completed, will play a material role in supporting the CAISO grid (California)-the Company's fifth market to date-to integrate rising levels of renewable generation.

Updated Dividend Policy:

The Company will target a dividend for the financial year ending 31 March 2025 of 7.0 pence per ordinary share, which is consistent with investors' expectations based on the current NAV. This will be subject to cash generation from the underlying portfolio, reflecting prevailing market conditions and performance, financial position and outlook, and the fiscal environment in which the Company operates. From the 2024/25 financial year, the profile and quantum of dividend distributions will be more closely aligned with operational and other cashflows.

[bountyhunter] 15/7/2024 09:31

Quarterly div due to be paid today (1.5p).

[fordtin] 15/7/2024 09:11

I hope you're right about the conservative base line, but all I can see at the moment is a dirty great big red flag

[886370] 15/7/2024 09:08

Hi
I’m thinking when the projects in the USA and Ireland start to produce revenue this surely will dramatically increase our cash reserve.
We now have the revenue now from Ferrymuir
When USA comes online that will nearly double our existing capacity. Hopefully without any further dilution.
I’m hoping that we are coming though a pinch point in terms of revenue and thus will now increase.
I think the 1p per quarter is a conservative base line

[scruff1] 15/7/2024 08:45

Im in agreement with you fordtin. Uncertainty is not welcome in any market and this is around 60% uncertain until the Board make up its mind and let us all know at the last minute. As of now we have to hope its at least 4p. Doesnt get my week off to a good start. Maybe find out more later

[fordtin] 15/7/2024 08:34

A penny a quarter dividend plus a maybe, maybe not, special dividend in Q4 doesn’t do it for me.
Hopefully there will be a general market rally which floats all boats and provides a half decent exit price.

[waterloo01] 15/7/2024 08:24

Eminently sensible and if the PF grows as expected, they should get much closer to being able to pay earnings, but they do eventually need to be covered, so seems a sensible approach

[fordtin] 15/7/2024 08:14

Not impressed with this;

"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."

We won't know if there are further dividend cuts to come until the Q4 div is announced next year.

[melody9999] 15/7/2024 07:56

One assumes you have finally sold out then Coco? Surely would be foolish to contune holding?

[cocopah] 15/7/2024 07:27

Final results out and next year‘s dividend cut to 7p (with provisos) and link to NAV ended. Investors really need to ask questions of why this is happening when the investment manager Gore Street Capital is filling its boots with fees and charges (the CEO is treating investors as fools!).

More worryingly the additional $60m to $80m of revenue is obviously only maybe enough to service the debt and service a dividend of 7p. We could be left holding three 1p dividends and wringing our hands in the fourth quarter!

[spectoacc] 15/7/2024 06:17

"The Company will target a dividend for the financial year ending 31 March 2025 of 7.0 pence per ordinary share, which is consistent with investors' expectations based on the current NAV. This will be subject to cash generation from the underlying portfolio, reflecting prevailing market conditions and performance, financial position and outlook, and the fiscal environment in which the Company operates. From the 2024/25 financial year, the profile and quantum of dividend distributions will be more closely aligned with operational and other cashflows."


Not before time really.

[rik shaw] 15/7/2024 06:11

Final results including reduced target dividend of 7.0p for the coming year.

[waterloo01] 15/7/2024 05:47

Was going to suggest you'd be in trouble for posting made up rubbish, but then realised, no one takes anything you say seriously, so you're probably safe.

[george stobbart] 14/7/2024 18:15

*BRITISH ENERGY FIRM SSE PLC CONSIDERS SUBMITTING A TAKEOVER BID FOR GORE STRET ENERGY STORAGE FUND.

*DISCUSSIONS ARE ONGOING AND THERE IS NO CERTAINTY OR ASSURANCE AN AGREEMENT WILL BE REACHED ACCORDING TO UNNAMED SOURCES WITH KNOWLEDGE OF INTERNAL DELIBERATIONS. KKR, ARDIAN INFRASTRUCTURE, OTHERS MONITORING THE SITUATION.

*GORE STREET WAS NOT READILY AVAILABLE FOR A COMMENT. SSE DECLINED TO PROVIDE A COMMENT.

*SOURCE BLOOMBERG PROFESSIONAL SERVICE

[williamcooper104] 14/7/2024 17:42

If they finance each asset/spv with non-recourse debt then its flows to equity that matters and not consolidated EBITDA Eg if one project is underwater and can't distribute then that has no impact other than on that projectEbitda is of even more questionable value than it usually is when dealing with fixed life/projects/assets

[stemis] 14/7/2024 11:54

I agree. GSF is no worse than others. The area is replete with companies using their investment trust status to not consolidate their subsidiaries and not disclose full group profitability, thus giving them the appearance of covering their dividends. Indeed in some respects GSF is better than others, like SEIT (which doesn't even disclose Group ebitda).

[yump] 14/7/2024 10:20

I don’t get why someone would brag about being in profit, when you can’t actually figure out what the business is really doing.

Its also ridiculous to comment on someone buying too high, when the previous share price is only “high” in retrospect.

Its not like it was a trendy overblown crock of, when it floated.

You could possibly accuse those in charge of arranging a structure where they are in a no-lose position regardless of fund performance or business profits. Also floating at an opportunistic time.

But I’m not sure that is exactly unusual in the market.

[stemis] 13/7/2024 15:11

I don't know what the share price is going to do here, but what I do know is that

1. the dividend isn't remotely covered by the profits being made in the Group. The way the directors are allowed to account for and disclose information about the Group's performance obfuscates this
2. the NAV is just what the investment manager thinks the subsidiaries of the company should be worth, based on future cashflow assumptions of which we have no visibility. Since part of the remuneration of the manager, Gore Street Capital, is based on NAV, they have every incentive to inflate it
3. Gore Street Capital are getting extremely well (indeed over) paid for what they are doing here. They ar the only one's really making any money out of this.

[cocopah] 13/7/2024 14:39

Cc2014 … absolute rubbish, the share price hasn’t been that low to be sat on substantial paper profits. If you took a good look at the company instead of trolling me then you would know that the points I make are both relevant and real. Some of us have been invested here for five years.🙄€580;

[george stobbart] 13/7/2024 11:42

Blue Horseshoe loves GSF

RNS drafted as we speak for 7am Monday 15/7 release

[cc2014] 13/7/2024 11:24

I get it now Cocopah. You blame the CEO for crating the share price rather than yourself for buying at too high a price.

Some of us are sitting on decent enough paper profits!

[llef] 13/7/2024 08:29

Article below on falling battery prices, and knock-on effect for BESS installations.

relevant snippet.
"The Battery Energy Storage System (BESS) industry could benefit the most from plummeting battery prices. Turnkey deployments already cost 43% less compared to 2023. BNEF estimates a 61% increase in stationary storage installations globally this year, amounting to 155 GWh."



hxxps://www.electrive.com/2024/07/12/plummeting-battery-prices-in-china-may-normalise-evs-globally/

[george stobart] 12/7/2024 15:45

Sir Kier will save all these green stocks.

I entrusted him with my vote.

We will all make big money over here because Labour loves renewables and battery storage, and they hate oily stocks