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
1.50 0.95% 159.50 16:35:07
Open Price Low Price High Price Close Price Previous Close
159.50 158.00 160.50 159.50 158.00
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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

Top Dividend Posts

marktime1231: It was a tough decision for me choosing between the two, I picked GRID because it had pipeline scale, solid financial backing and management credibility, albeit asset focus rather than income operations. I still think GRID had too much focus on gross asset expansion and not enough on maximising income from operations, but that may be improving now. GSF communication style put me off, too much spiel, impenetrable sales patter. But I wasn't really sure which way to go. I wondered whether someone able to unpick the financial fundamentals would be able to explain the differences. Lucky me as it turns out picking GRID seems to have been a winning choice so far. Very much appreciating the shareholder value being created and, provided they don't stray in to making wild investments in future, I expect the way they are going about it will end up yielding a better dividend. I am here for long term income. When they say the cost per MW of additional assets is falling and that they are using intelligent tools to optimise income and contemplating solar+battery farm investments it counters the worry that future prices will not be so frothy. Hindsight is pretty powerful, but at the time I had no idea GRID would leave GSF behind, it wasn't clever analysis by me just lucky judgement.
marktime1231: The scrabble for new GSF shares at 110p is interesting. A £150M raise is about a 40% dilution, and they have permission to raise a further £600M in due course. The contrasting fortunes over 4 years between GRID and GSF is even more interesting, considering they both launched in 2018 at 100p and both pay 7p. I'm sure someone crafty on here could post a comparison of NAV and share price Are they both equally comfortable in covering dividends with net income? The demand for GSF suggests, if it was felt necessary, GRID would be able to tap the market in the 150's to fund an accelerated expansion programme. But GRID doesn't need to tap the market, it has access to all the funds it needs for the next 18-24 months, mostly based on gearing, so why dilute until there is a more immediate call for additional funds it can't borrow? Perhaps the excitment is that people suspect there is as-yet hidden value in GSF shares whereas the value being created by Gresham House is visible? Punters expect GSF to mirror GRIDs performance because they are the same, right? Or do we need to take a more critical look at the portfolios, the pipelines, the management, the strategy, the economics, explore the differences rather than assume they are the same?
speedsgh: Battery fund GRID shoots lights out raising guidance after 20% return in 2021 - HTTPS:// 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.
marktime1231: Tremendous NAV progress and prospect. The guidance to 145p NAV per share by mid 2022 is phenomenal. A rather cautious attitude to the dividend to be held at 7p despite that level already 1.32 x covered by income and despite the expanding operation and despite large sums of cash not yet deployed. I don't mind the caution, but it would be helpful to have an idea of how much better things have to get before they consider dividend progression. There may be headwinds of changing revenue mix and loan interest to pay perhaps. But at the very least let us know what we can look forward to, frame the terms eg a target payout of 75% net income or a 5% y-on-y progression, rather than a vague tease that you have things in mind. As an income investor I am more interested in the latter than the former. The manager (who is paid a fee based on NAV) is still tilted towards asset development, where it is excelling, rather than income (very good) and investor returns (stagnant). A minor quibble, but this news today is rather better for them than us. The strategic shift to earlier stage investment, bypassing the inhouse GHAM which was a bit of a conflict of interests, is welcome since GRID will retain more of the benefit of value creation. The shift to international markets including the US, and to mixed solar+battery to a limited extent, is also welcome. Not enough said in the strategy about longer duration storage which GRID notes is becoming increasingly important. Well done GRID. More focus on income progress please and thank you.
marktime1231: Actually I disagree. Take big players like SSE, BP and National Grid. They are investing in new multi-GW grid scale energy projects over an extended horizon, they are not buying into existing operations. The economics of buying mature assets versus building your own. (There are exceptions ... SSE has taken small stakes in onshore wind, solar and battery storage businesses, but that is peripheral to the big picture). The buffoon said in response to a question yesterday at the NATO meeting about energy security that Britain was pushing expansion in wind power where it is set to regain the world leader crown at "zero marginal cost". I think he means when the wind blows stronger than base-plan you get electricity for nothing. But he still has not worked out that wind power only provides security if: a) you build massive over-capacity, eg 3x what you need as base-load; b) you build the grid connections, long duration and seasonal storage capacity to go with it. Those things come at a cost. He has not worked things through beyond the headline. Or maybe he has, setting us on a path where we build peak capacity offering 2-3 x the base-load generation we need, so 40-60GW wind + 20-30GW solar. We export the surplus and import some when we have a shortfall, although that is not real security. We already import typically up to 5GW and on one occasion recently we were briefly a net exporter. Except you still need a minimum base-load generating capability of 20GW or so like last night when it was dark and still ... but right now other than gas and coal we have a declining 5-7GW contribution from nuclear plus bits and pieces. 1-2hr energy storage to balance the grid from day to day like GRID does not solve this puzzle. (But yes we will need to add several GW of energy storage to do that job.) True energy security needs a way to store huge reserves of energy. In hydrogen perhaps. Or by using surplus power to capture carbon we absolve ourselves and can continue burning fossil fuels to provide base-load security when the wind does not blow and the sun does not shine. Or smart-connect every house-and-car with built in batteries and use them like a massive distributed storage network. That still only gives us cover for a few hours. Not season to season. We have nuclear fission (edit - I mean fusion!) to look forward to, but probably not in my life time.
speedsgh: Dividend Declaration - HTTPS:// 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.
marktime1231: Tit for tat going on between GRID and GSF via rns. Last week GRID said it has extended its deal with Arenko to use their system for optimising revenues across much of the GRID portfolio, something which came about from the acquisition of Bloxwich. The idea of getting the best return from assets obviously a good one, and no shame that GRID is employing an expert third party to do so. Is there? No concerns why it felt the need to announce this in public? A response from GSF this morning to say that, thanks to someone called Modo Energy it can claim that "three of the Company's sites were ranked as one of the highest revenue generating assets per MWh". Unfortunate use of impenetrable language yet again, what do they mean exactly? And we cannot see Modo's report to judge for ourselves. But great that they felt the need to say something. Getting to the truth will probably have to wait for hard financials or a truly independent commentary, but this is healthy competition from the look of it. Asset managers used to focus on the size of their assets and therefore the management fees they are earning, they are now squabbling about who is squeezing the best returns and competing to be the top income generator. Good for investors, the leading managers striving to deliver the best income rather than waving the size of their asset growth at each other. We are income investors, how well income covers the dividend is what we are here for. Not that we had much to worry about, revenues have been super for all sorts of market reasons, both companies trading in a purple patch and share prices at an extreme premium to NAV. Presumably because the (reporting of) NAV growth needs to catch up, and hopefully because revenues are continuing to exceed the base plan. Still waiting to hear GRIDs strategy for long duration storage. Something about the next level and brand new markets would be good too, the prize as always is the USA where individual energy storage projects are bigger than the whole of GRIDs pipeline.
speedsgh: Trading Update - HTTPS:// Gresham House Energy Storage Fund PLC (LSE: GRID), the UK's largest fund investing in utility-scale battery energy storage systems, is pleased to provide shareholders with an update on trading for the full year to 31 December 2021 ahead of the publication of its audited annual results in April 2022. 2021 has been another transformational year for the Company. Key highlights include: - Full year revenues of the asset portfolio comfortably ahead of modelled levels and EBITDA of the asset portfolio expected to be in excess of £40m, more than doubling FY2020 EBITDA (£15.6m[1]); - Full dividend cover[2] for FY 2021 dividend target of 7.0 pence per share; - 415MW of battery energy storage systems ("BESS") under construction as at Q4 2021 (Q32021: 175MW); - 280MW added to the exclusive pipeline during Q4 2021 for connection in 2023 and 2024, increasing the target portfolio, once operational, to over 1.5GW; - Further growth in the Company's capital base in 2021 with £100m raised in equity funds and £180m of debt secured at an interest rate of SONIA + 300bp before hedging costs. Looking ahead to 2022, as projects progressively commission through the year, GRID anticipates achieving the following ambitions: - Full dividend cover for FY 2022 target of 7.0 pence per share, with cover continuing to improve progressively as new projects commission during the year; - Net Asset Value ("NAV") growth towards the upper end of the target range of 8% to 15%[3]; - Continuing to be the leading owner of operational BESS in the UK and Ireland with a market share of c.25% to 30%. These targets are underpinned by the deployment of existing cash and, incrementally, drawing of low cost debt into pipeline projects with Internal Rates of Return (IRRs) which are significantly above the Company's weighted average discount rate. John Leggate CBE, Chair of Gresham House Energy Storage Fund PLC commented: "The outlook remains very exciting for energy storage sector investments, particularly due to the recent Contract for Difference (CfD) auction launch announcement for renewable generation projects. The UK government's Department for Energy and Industrial Strategy (BEIS) expects this will result in a further 12GW in contracts, primarily for offshore wind, far in excess of the 5.5GW achieved in the 2019 round. This substantial growth in renewables will lead to increased generation intermittency and therefore drive the need for significant additional energy storage capacity. GRID remains committed to taking the lead in providing this storage capability in the UK and Ireland." Ben Guest Lead Fund Manager and Managing Director of Gresham House New Energy, added: "We continue to work towards the commissioning of our extensive pipeline, as well as continuing to grow it. We are excited about the impact that achieving these milestones will have on the prospects for earnings growth and NAV progression in 2022." [continues]
speedsgh: Dividend Declaration - HTTPS:// 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 July 2021 to 30 September 2021. The dividend will be paid on 17 December 2021 to Shareholders on the register as at the close of business on 26 November 2021. The ex-dividend date is 25 November 2021. 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, 0.75 pence is declared as dividend income with 1.00 pence treated as qualifying interest income.
marktime1231: From the results and fund raising announcements from Gresham House Plc today ... "We continue to develop utility scale battery storage projects to support the growth of Gresham House Energy Storage Fund plc (GRID) and have £11 million invested in projects at the end of the period and also completed the sale of 30MW to GRID in H1, deploying balance sheet capital to support growth." and "The Group sold one of the battery storage development projects, Byers Brae, in the period to Gresham House Energy Storage Fund plc (GRID), realising a gain of £818,000. The development of these sites is also used to incentivise the team and as such a proportion of the gain is paid to the team as a variable incentive. Other costs associated with battery storage development projects were £219,000 in the period." and "The Company intends to raise gross proceeds of approximately £40 million through a placing ... The intended net proceeds of the Placing will be used to fund the Acquisition as well as to fund development projects such as battery storage and solar projects, which are intended to be acquired by vehicles managed by Gresham House, thereby creating value for shareholders." How nice that GRID provides a ready-made customer for the battery storage developments of its parent Gresham House, creating value for shareholders (of the parent). A net profit for the parent of £599K on the 30MW Byers Brae project and £219K bonus for "the team". As a GRID shareholder I would prefer that GRID invested directly in projects at an earlier stage to get the benefit of creating value. I very much hope the stewardship of GRID includes transparent procedures to ensure assets are acquired at best price and are not influenced by bonus incentives for "the team". The opportunity for skewed insider dealing is obvious, and where people have an opportunity to make quick easy money they susually do. We might be comforted that GRID is acquiring operational assets which enhance its value, and that value might be expected to continue to grow a little, but there is a nagging disquiet at the back of my mind that the parent and team are making a quick no-risk profit at GRID's expense. It would be reassuring if, for example, GRID rejected a deal with its parent, or was able to secure cheaper battery storage assets from another developer just to demonstrate it was dealing fairly. But why not avoid that scenario all together by allowing GRID to invest directly in development projects at the earlier stage?
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