Gresham House Energy Sto... Dividends - GRID

Gresham House Energy Sto... Dividends - GRID

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Stock Name Stock Symbol Market Stock Type
Gresham House Energy Storage Fund Plc GRID London Ordinary Share
  Price Change Price Change % Stock Price Last Trade
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0.00 0.0% 161.50 00:00:00
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EQUITY INVESTMENT INSTRUMENTS

Gresham House Energy Sto... GRID Dividends History

Announcement Date Type Currency Dividend Amount Period Start Period End Ex Date Record Date Payment Date Total Dividend Amount
04/05/2022InterimGBX1.7501/12/202131/03/202212/05/202213/05/202227/05/20220
14/02/2022InterimGBX1.7531/12/202031/12/202103/03/202204/03/202225/03/20227
15/11/2021InterimGBX1.7530/05/202130/09/202125/11/202126/11/202117/12/20210
01/07/2021InterimGBX1.7530/12/202030/06/202108/07/202109/07/202130/07/20210
28/04/2021InterimGBX1.7501/12/202031/03/202113/05/202114/05/202104/06/20210
22/02/2021InterimGBX1.7531/12/201931/12/202004/03/202105/03/202126/03/20217
27/10/2020InterimGBX1.7530/05/202030/09/202005/11/202006/11/202011/12/20200
01/09/2020InterimGBX1.7530/12/201930/06/202010/09/202011/09/202025/09/20200
11/05/2020InterimGBX1.7501/12/201931/03/202021/05/202022/05/202012/06/20200
17/02/2020InterimGBX131/12/201831/12/201927/02/202028/02/202020/03/20204.5
26/11/2019InterimGBX130/05/201930/09/201905/12/201906/12/201920/12/20190
28/08/2019InterimGBX1.130/12/201830/06/201905/09/201906/09/201920/09/20190
26/04/2019InterimGBX1.401/12/201831/03/201916/05/201917/05/201907/06/20190

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Posted at 16/12/2022 15:49 by spangle93
JamTin

The RNS on 31 Oct states "GRID is pleased to announce a dividend of 1.75p per Ordinary Share for the period from 1 July 2022 to 30 September 2022. The dividend will be paid on 16 December 2022 to Shareholders on the register as at the close of business on 25 November 2022. Of this dividend declared of 1.75 pence per Ordinary Share 0.65 pence is declared as dividend income with 1.1 pence treated as qualifying interest income."

I have a payment from HL titled "STDIV" equivalent to 0.65p/share. So, one would suspect the cash equivalent to 1.1p/share would show as a separate transaction

However,
The RNS on 27 Sept also stated "GRID is pleased to announce a dividend of 1.75p per Ordinary Share for the period from 1 April 2022 to 30 June 2022. The dividend will be paid on 28 October 2022 to Shareholders on the register as at the close of business on 7 October 2022. Of this dividend declared of 1.75 pence per Ordinary Share, 0.65 pence is declared as dividend income with 1.1 pence treated as qualifying interest income."

In my HL account for 28 Oct it just has a single transaction called STDIV of 1.75p

So, having looked at it for myself, I don't know what they are playing at either.
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Posted at 05/12/2022 10:12 by jonwig
marktime - how long can a Li-ion battery store power for? I read once it was 6 hours maximum. That's more than enough to smooth out peak demand over a day's cycle.

Another company has just commissioned three sites, for 1 hour and 2 hours. Presumably they believe that will come in useful?

This is a useful introduction, but it doesn't give numbers of hours:

https://www.nationalgrideso.com/electricity-explained/how-do-we-balance-grid/how-does-storage-help-us-balance-grid
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Posted at 29/10/2022 19:23 by jonwig
From The Times, 24/10 (pinched from the GSF thread, the poster thanked):

In a field in Leicestershire neat lines of identical green shipping containers stretch into the distance. Each container is stuffed full of black plastic boxes a bit like car batteries. A forest of electrical apparatus and switchgear sits close by in its own fenced compound. Workmen and engineers bustle by, putting the finishing touches to the project.

“From this one site we can boil one million kettles,” Ben Guest declared, gesturing around himself. Guest is the driving force behind a growing new industry, battery storage, that might just play a significant part in the battle to slow global warming while making attractive returns for investors.

This site in Enderby, just across the road from the Next head office, is the eighteenth of what Guest hopes will be a fleet of 28 battery sites scattered across the UK by the end of next year.

He is the manager of Gresham House Energy Storage (GHES), a listed company valued at more than £800 million. It is by far the biggest player in UK battery storage, claiming about 29 per cent of the market.

It is an industry (known as Bess: battery energy storage systems) that has sucked in hundreds of millions of pounds from investors intrigued by the modern-day alchemy of buying power from National Grid in the middle of the night when it is cheap, storing it for a few hours and selling it back at breakfast time for a profit.

The wholesale price of energy can oscillate between minus £100 per megawatt hour and £4,000 per megawatt hour in the space of a few hours. It is an arbitrageur’s dream. The minus price occurs when battery operators are paid to take excess power from the system in a process known as curtailment. Batteries help to solve the problem at the heart of renewable energy: its intermittency. Wind and solar farms could provide even more of the nation’s power but only if it could be cheaply and reliably stored.

Guest, an employee of the investment manager Gresham House, an engineer by education and hedge fund manager by background, has raised more than £620 million from investors, most recently tapping them for £150 million in May.

It was a bumpy start. At the launch of the company in 2018 he raised only half the £200 million he had hoped for in his first capital-raising. Investors were hesitant about the untested business model. Everything from planning consent (the sites are not beautiful and the batteries hum slightly) to doubts about battery life worried potential investors.

GHES has so far, however, largely done what it promised, opening sites from Byers Brae in West Lothian to Littlebrook in Kent and all the while paying a 7p dividend in a world where investors have been starved of yield. The shares, first priced at 100p, are now trading at 156p. Total return since flotation is a very respectable 87 per cent.

Enderby is a few months behind schedule and has not yet supplied a watt of electricity. Just getting the equipment has taken longer than expected because of supply chain interruptions. Then there are delays in connecting to the wider electricity system. Local grid companies can be “twitchy”; about this new source of power, Guest said. They are overstretched and not always very familiar with this new form of technology. Plumbing in the sites, which involves a huge safety-critical step-up in voltage, is a serious matter. Guest pointed across to the massive £1 million transformer at the heart of this process, which is needed to connect his batteries to the high-voltage pylons visible across the fields.

So far Guest and GHES’s third-party contractors have built and opened 429 megawatts of installed capacity. Confusingly the industry measures capacity in terms of power (megawatts), not energy (megawatt hours), because power determines the speed of charging and discharging the batteries, which is the most important factor in operational success.

Indeed, this nimbleness has proved to be such a competitive advantage that it has for now entirely changed the business model: GHES has increasingly switched from trading its power to selling a service called “frequency response” to National Grid. To avoid blackouts the Grid needs to keep its power frequency stable and to do that it needs batteries, which can feed in with a notice period of less than one tenth of a second. Coal-fired stations, which used to do the job, are mostly shut down. About 80 per cent of GHES’s revenues come from frequency response.

The industry is growing quickly, Guest said, but not quickly enough. “Why? Because the rate of deployment of renewables is far in excess of the rate of deployment of batteries.” Existing renewables capacity plus projects in the pipeline amount to 51 gigawatts in the UK, he said. Batteries, by contrast, are for now a tiny 1.5 gigawatts. This is an industry that needs to grow at least tenfold, he said.

He is relatively relaxed about the recent turmoil in the prices of raw materials: lithium carbonate has gone up fivefold in the past 12 months, pushing up the price of batteries. “It’s going to be deeply cyclical,” Guest said, confident that at these prices more lithium mining capacity will be opened up. He competes with the car industry for the batteries, which come from China.

Another common concern is how long the batteries will last. They tend to degrade relatively slowly and then suddenly fail completely. Manufacturers provide ten-year warranties but the speed of degradation very much depends on how aggressively they are used. Guest is confident that his batteries will last 15 to 20 years. “What I can say anecdotally is that the degradation of our batteries has been far less than the warrantied case.”

GHES’s scale gives it an advantage here, he added. The company is building a huge database that helps it to run its batteries in the most efficient way while designing new projects as optimally as possible. This is partly about the business of coaxing the longest life out of his batteries.

Another potential threat is the recent widening of the energy windfall tax. So far the assumption has been that this will only be imposed on renewable energy generators, not batteries, but with the coming post-Truss administration desperate for tax revenues, no one can be sure that it might not be extended.

Meanwhile, rising interest rates are posing a risk because of the way battery sites are valued by calculating all future cash streams discounted back to the present day. Guest uses a discount rate of 10.8 per cent, which he describes as conservative compared with the competition. If that had to be raised it would hit the company’s net asset value, which is 145p per share.

There is undeniable nervousness in the industry. Earlier this month a rival battery operator, Harmony Energy, received only £15 million in a fundraising in which it had hoped to raise up to £130 million. It called it “a very challenging market backdrop”.

As a hedge fund manager at Lazard 25 years ago Guest rode both the dotcom technology boom and subsequent bust, profiting on the way up and on the way down because he was able to short-sell. He does not have that same two-way flexibility with this new technology. He is confident, though, that he has the scale, the head start on competitors and the expertise to flourish further even if the headwinds intensify. And, he pointed out, he is well aligned with stockholders: £22 million of his own fortune is invested in GHES shares.
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Posted at 29/9/2022 13:22 by speedsgh
Slightly misleading headline. It is the Stifel analyst (not GRID) who is suggesting that there may be scope for a special dividend IF revenues from the energy trading side of the business are strong over the winter.

... "Stifel analyst Sachin Saggar said the results were good with 89% of revenues coming from frequency response services, although he noted Guest’s comment that pricing here will fall as more supply comes on stream in the second half.

Nevertheless, he was optimistic that energy trading through the winter could provide a boost for dividends where GRID is on track to meet a 7p-per-share target for the year after paying 3.5p in the first half, 1.18 times covered by earnings.

‘Gresham House has the largest portfolio of operational batteries and is best placed to take advantage if we do see a marked shift to trading. If higher revenues are realised there is also scope for a special dividend in 2023,’ said Saggar."...
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Posted at 29/9/2022 12:37 by marktime1231
Unfortunately I can't read that article. Or maybe it is just as well.

What rate fears and when? GRID is effectively debt free at present, agreements and terms in place for £30M of working credit, £150M of investment loan plus a £200M accordion, which is sufficient to see through its committed pipeline.

What hint about what special dividend? Due to the May share issue and project delays the regular dividend is only just covered by income, hardly awash with distributable cash until they complete the commissioning programme through Q1 2023, and then I would hope GRID are thinking of progression to the regular dividend not splashing cash on a special.
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Posted at 15/9/2022 19:20 by marktime1231
Just reminded myself that in January GRID said they had 415MW in construction for completion during 2022. Well if there have been no go-lives so far this year then progress must be backing up. Should we be expecting a flurry of NAV-enhancing news, or some slippage into H1 2023 perhaps?

Yes the UK pipeline looks pretty full and funded, but a move in to new international markets (please be the US) will need major funds especially if the move includes operational assets. If GRID can sell stock at a hefty premium to NAV it would make acquiring operational UK assets viable too.

Are there co-investments where GRID can increase its stake? What about investing in existing sites to increase duration 1hr to 2hrs or 4hrs, maybe coupling LFP with flow batteries? What about joint ventures with solar and wind farm developers who are increasingly incorporating storage in their plans? Easy routes to create value.

GRID is so well funded it is able to accelerate the business while others in the sector might be struggling to keep up because suddenly using debt finance at base + 3% not so attractive . Yes it would be tempting to restrain the pace so that income can progress the dividend, but Gresham House earn their money from expanding assets. Heading in to a European winter energy crisis. Go for it.
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Posted at 15/9/2022 11:38 by marktime1231
GHE are

the excellent asset management parent company responsible for GRID's success

or

the guys raking in fees for not having to do much while GRID appreciates in value. OK maybe that's not fair, they ran a £150M fundraise at 145p in late May and the share price today is nuzzling 180p

and

presumably so thrilled with their own performance they have forgotten we are overdue a dividend and will soon be due a NAV / trading report here.

Notwithstanding those gripes, it was interesting to read in GHE's outlook that they are expecting further incremental progress in GRIDs asset value due to commissioning anticipated in H2. But none in H1. "There are a number of projects which are expected to become operational in H2 2022 and we shall update shareholders as this takes place". My foggy brain can't remember which projects are due to go live imminently.

GHE also heralds GRID international expansion. And says it is developing an exclusive renewable + battery storage portfolio using own funds so presumably small ventures on behalf of a new insitutional client ... eh? No longer feeding GRIDs pipeline then, or also working on major opportunities for GRID?

It would be nice to hear something direct and a bit more specific from GRID in these regards.
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Posted at 14/9/2022 11:17 by marktime1231
Tempus explaining that it is an awareness of the UK's lack of energy security and GRID's part in helping to solve the peak-demand problem which has spurred the share price onwards and upwards. GRID now trading at a 20%+ premium to the forecast 30 June 2022 NAV of 145p per share.

Still a forecast because GRID has failed to update the market or explain why it is silent despite saying to expect a dividend announcement in August, curiously long overdue. GRID could be waiting to see the detail of how the new government intends to put a lid on extreme energy prices to include the emergency half-hour-ahead services where GRID makes super profit.

Frustrating but hard to get too worked up about it while the share price is still gaining, despite or because of the lack of news.

I wonder if we might now get an exciting combined update later in September, no doubt to include a NAV beat, super trading report and who knows even the long awaited progress in dividend, or maybe news of the next expansion phase and funding round.

In theory we ought to be trimming our holdings because the price looks so expensive and the income has not kept up, and yet the feeling is that there is more good news to come and the conviction that this is the place to be and remain invested right now.
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Posted at 08/4/2022 09:28 by speedsgh
Battery fund GRID shoots lights out raising guidance after 20% return in 2021 - HTTPS://citywire.com/investment-trust-insider/news/battery-fund-grid-shoots-lights-out-raising-guidance-after-20-return-in-2021/a2384593

Gresham House Energy Storage (GRID) set out its stall as one of the leading growth opportunities in the renewables sector today with annual results showing increasing momentum from the UK’s largest battery operator.

Net asset value (NAV) of the £490m portfolio, which is backed by many wealth and fund managers, rose 10.2% to 116.86p last year as more of its 24 projects became operational and were revalued at a higher level.

Including quarterly dividends, the investment trust delivered a 20.3% total investment return, extending to 51.5% of the total return shareholders have received since launch over three years ago.

Shares in the closed-end fund managed by Gresham House’s Ben Guest jumped nearly 6% to 148p today as the company raised previous guidance for further growth this year and aimed to take advantage of an acceleration in the rollout of clean energy as the UK and Europe look to cut reliance on Russian oil and gas following the war in Ukraine.

As GRID’s business model shifts towards trading energy – and exploiting volatile power prices – rather than simply being a backup supplier, it anticipates NAV per share will rise to at least 124p on 31 March and to 140-145p by the end of June.

‘This would equate to a 6.1% uplift in the first quarter and a 20-24% increase in the first half,’ said Numis analyst Andrew Rees. This follows a 6% NAV gain in the fourth quarter of 2021, Jefferies, GRID’s broker, said.

Investors were also impressed with a surge in earnings to £36.25m from £14m in 2020. This strengthened cover for GRID’s 7p per share in dividends to 1.3 times, a big improvement on the previous year when the payout was uncovered.

The company is again targeting to pay 7p this year putting the trust on a 4.7% forward yield.

Morningstar data on the Association of Companies website puts GRID shares on a big 25% premium at last night’s share price of 140p. But, as Jefferies analyst Matthew Hose pointed out, this falls to 13% against the 124p 31 March NAV the company has published today.

Although GRID has £114.3m in cash after paying its fourth dividend for 2021 and a £180m debt facility to use, analysts expect it to raise more money from shareholders, having drawn in £100m in an oversubscribed share issue last summer.

‘The company says the remaining cash on the balance sheet of £120m is committed to new investments, and it anticipates using the £180m debt facility. Therefore, we expect an equity issue in the near term and some investors may wish to use this as a way to access the fund,’ said Stifel analyst Anthony Stern, referring to the practice of investment companies to issue new shares at slightly below their market price.

Chair John Leggate said the board was closely following the global response to Russia’s invasion of Ukraine and the impact on the energy market. ‘For the moment, the indications are pointing towards a much faster rollout of renewable energy globally with an associated increasing demand for energy storage projects,’ he said, pointing to the potential easing of planning restrictions for renewables projects in the UK.

Guest added: ‘2021 has been another year of growth focused on value creation. We have eight projects in construction and further projects set to enter construction. This will deploy all existing equity funds as well as the existing debt facility, improving the company’s structure while increasing portfolio cashflow significantly.’

As part of its growth plans, GRID will shortly seek shareholder approval to invest up to 10% in ‘shovel-ready’ construction projects and to expand internationally. Currently, the company can invest up to 10% in Ireland but wants to replace this with a new policy of allocating up to 30% in major OECD markets. This could include some investment in solar generation.
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Posted at 14/2/2022 08:49 by speedsgh
Dividend Declaration - HTTPS://www.investegate.co.uk/gresham-house-energy--grid-/rns/dividend-declaration/202202140700084899B/

Gresham House Energy Storage Fund PLC (LSE: GRID) is pleased to announce a dividend of 1.75p per Ordinary Share for the period from 1 October 2021 to 31 December 2021. The dividend will be paid on 25 March 2022 to Shareholders on the register as at the close of business on 4 March 2022. The ex-dividend date is 3 March 2022.

Any such dividend payment to Shareholders may take the form of either dividend income or "qualifying interest income" which may be designated as an interest distribution for UK tax purposes and therefore subject to the interest streaming regime applicable to investment trusts. Of this dividend declared of 1.75 pence per Ordinary Share, 1.65 pence is declared as dividend income with 0.1 pence treated as qualifying interest income.
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