Harmony Energy Income Share Discussion Threads

[wish i wasnt in rbs] 04/10/2022 15:21

CDV - you need to be on the Primarybid app.

[cruelladeville] 30/9/2022 13:22

Has anyone here managed to find any official documents regarding the C share offer? I have tried London Stock Exchange, Berenberg (mentioned in the RNS) and HEIT's own websites. At none of them can I find anything related to the C share issue. Thanks.

[cruelladeville] 29/9/2022 09:03

Money raised from C shares is buying shovel ready projects that HEIT already have sn option on. Extra capital raised should therefore be NAV return enhancing.

[cruelladeville] 29/9/2022 07:55

I haven't heard of this yet. Is it open to existing shareholders or just institutions? I will go and take a look. Thanks for the heads up.

[cc2014] 29/9/2022 07:06

I've read this more carefully now. They are c shares and will convert as a ratio of the NAV which I think means in the end you'll only get about 82 shares for £1

[nickrl] 28/9/2022 22:44

CC2014 with the BoE intervention and calmness returned im sure they find plenty of willing buyers now happy to get a lookin for 100p

[cc2014] 28/9/2022 22:00

Raise at 100p when it was 118p only a few days ago at a price 16% below NAV???

Someone needs to explain this to me. I sold out on Friday as previously stated but if I was still in I'd be fuming



Harmony Energy

Certain senior Principals of Harmony Energy, the Investment Adviser and their associates have confirmed that they will collectively subscribe for new C Shares in the Placing equating to GBP1 million in aggregate. Those C Shares and, post conversion, the new Ordinary Shares, will be subject to a two year lock-up and orderly market arrangement.

In addition, as consideration for the pipeline projects, it is expected that Harmony Energy will receive a minimum of 15 per cent. of the consideration payable in C Shares with the balance of maximum 85 per cent. payable in cash. This split of shares and cash payable to Harmony Energy requires a variation to the Pipeline Agreement however the calculation mechanism for total consideration payable to Harmony Energy remains unchanged. Cash consideration payable to Harmony Energy is intended to support the continued development of pipeline projects. The C Shares issued as consideration to Harmony Energy and, post their conversion, new Ordinary Shares will be subject to the provisions of the Lock-up and Orderly Market Deed entered into on IPO.

[jt35] 28/9/2022 14:47

It's a 'c' share issue so separate from the already issue shares and will only convert to ords when monies are invested. It is very unfortunate timing though.

[nickrl] 28/9/2022 13:11

HEIT raising 130m via share placing at 100p so not sure how we can get involved if we want. Timing is poor i wouldn't be surprised if they don't get it away.

[pottsypotts] 27/9/2022 12:45

Wise move quite a dramatic drop over two days thought these had missed the falls on everything else

[nickrl] 26/9/2022 18:17

Gas has massively dropped back today and this will reduce the system marginal price and reduce volatility so pare back trading opportunities but bottom line is more renewables are coming and this will need HEITs assets to help maintain the grid.

[yump] 26/9/2022 17:20

All these renewable funds have gone down today.

[cc2014] 26/9/2022 11:45

Sold mine on Friday as I figured stuff was falling and this hadn't.

Support seems to have gone now.

[nickrl] 16/9/2022 22:13

GRID have been able to exploit power market volatility by having operational assets but moves are a foot by government to force prices back to more sensible levels by breaking the system marginal pricing link so this opportunity may not always be around. Anyhow there is no immediate timeline for implementation so HEIT having 2hr batteries will be able to exploit several of the half hour peak prices every day.

[cruelladeville] 16/9/2022 21:11

RNS Number : 8171Z, Schroders increasing holding.

[cruelladeville] 15/9/2022 16:25

Should see a share price moving northwards here but no sign of HEIT following GRID upwards just yet?

[cruelladeville] 08/9/2022 17:41

Looking forward now to HEIT bringing assets on line. It's a great time to be in this business. This will follow a similar share price trajectory to GRID.

[cc2014] 08/9/2022 09:44

Interesting RNS on TRIG today on battery storage investment saying they are building 3 projects

First two for 80MW which will come on line in 2024/25 and third one for 85MW which will be in 2029

This shows just how valuable these assets are given the lead times, given HEIT has 98MW coming on-line in November.

HEIT's pipeline beyond the 6 "under construction" has grid energisation dates from Q3 2023 to Q4 2024 so we can see they are ahead of the game.

[nimbo1] 27/8/2022 09:49

im not against a tax on any super normal profits - asset prices and dividends will still go up a bit. Its a balance as they need these things built desperately and need to encourage investment not penalise it. Getting out of this mess will require 5 years of pain from the consumer and concerted efforts from government to get energy infrastructure built imo.

[cruelladeville] 26/8/2022 20:44

Agreed. That has to be a very real possibility. I was just reading that the electricity price cap in October is 52p per kw/hr. And another rise on the way in January.

[nickrl] 26/8/2022 17:42

Whilst HEIT, GRID are clearly commanding a premium due to escalating power prices there is heightened risk here that whoever becomes PM will have to raid all parts of the energy supply ecosystem with a windfall tax if they are to even cover a small part of neutralising the cost of bailing out consumers.

[cruelladeville] 26/8/2022 13:32

I wouldn't bet against a significant rise in NAV and share price here at HEIT. If there's a discounted share issue in the next year or two, I'll certainly be investing.

[cc2014] 26/8/2022 12:13

I have been trying to think through HEIT this morning.

Within approx a year the Trust will be fully deployed and deliveing the promised 8p dividend and 10% return. Indeed the return is likely to be better that given current the 2-hour energy charts compared with what they looked like at IPO.

Of course I'm sure we will see another fund raise but let's put that aside.

This will give us a dividend of 8p compared with GRID's 7p. I'm sure GRID is having a good time and will raise their dividend in a year. Call it 7.5p or 8p to keep things simple.

So, with GRID at 167p does that mean HEIT should be 167p in a year too given it will be providing the same kind of yield? Um, well I have to think a bit harder on that one, because I'm sure it will depend on the DCF models of future cashflows and sadly these Trusts don't publish those in the accounts.

[cc2014] 25/8/2022 11:39

NAV increased by 6.72% to GBP244.05 million, or 116.21 pence per share, up 7.32 pence per share over the three months from 30 April 2022

Revenue projections have not been revised since 30 April 2022. Next revision due 31 October 2022


It's my view that second statement about revenue projections unchanged since April 2022 is basically saying there's another NAV increase on the way. We know power prices are through the roof and the battery storage arbitrage opportunity has increased.

The chart of the average 2 hour battery revenue is on the factsheet. It seems to have gone up from about 35 to 42 (the scale is a bit difficult to read). That's going to give a nice improvement to the DCF model.

[nerja] 22/8/2022 08:23

Small 2k top up that nav increase today looks good to me