Sdcl Energy Efficiency I... Share Discussion Threads

[hpcg] 25/7/2024 19:22

It is an important distinction in this case*. These infrastructure funds can be opaque so when we get actual data at a subsidiary level it is very helpful. Incidentally the annual report mentions Cleveland Cliffs as sub-investment grade but nothing about Primary Energy in that regard!

As some have commented, any gearing at the holdco level is leveraging already leveraged opco. This isn't ducked in the annual report, all 134 pages of text and numbers, but the consolidated amount only makes an appearance on page 133.

[cc2014] 25/7/2024 15:46

Indeed I do mean Primary Energy and the RNS clearly says it's because they've de-risked the income stream from the end customer.

I can be a little loose with my language sometimes. Thanks

[hpcg] 25/7/2024 14:28

When you say they, you mean Primary Energy. If the loan is at the operating company level then it will be paying junk levels of interest on loans. The important change is not just that payments from that source will increase, but the improvement in credit risk that means Primary Energy is getting healthier.

[cc2014] 25/7/2024 11:22

Renegotiation of one of the loan facilities saving £1.3m a year.

I kind of was shocked to see they were paying 425bp over SOFR. I guess that had passed me by and sort of explains a little why the share price is lower than I think it should be.

Even 350bp still seems high to me, but I do note that it is floating so we will see the benefits of falling interest rates which is the right thing imho

[cc2014] 27/6/2024 11:39

Results today and I listened to the presentation earlier.

We are still left with the same two issues:

A bunch of investments that have the opportunity for further investments resulting in better margins than the original investments
Constrained cash as no further funding available

So, SEIT are balancing the attractive investment opportunities vs available cash vs share buybacks vs dividend.

[hpcg] 15/6/2024 14:12

Yes, rise in anticipation of the dividend, fall back when it is trading ex.

[dickiehh] 15/6/2024 11:00

Another big drop this week, can anyone explain?

[panshanger1] 13/6/2024 08:19

Ex Div today

[doctorbird] 10/6/2024 18:01

Weekly chart. Inverse Head&Shoulders. Resistance and target around 85-90. MACD,RSI,ROC,RRG all bullish. DMI cross buty ADX not yet turned up (it lags anyway)

[panshanger1] 05/6/2024 08:55

6 month high here

[cc2014] 31/5/2024 12:21

I'm feeling quite optimistic. The trade flow pattern has changed and so has L2.

Sellers are no longer driving the price down. Indeed it looks more like instead of having multiple sellers we are down to 1 or 2 and they are happy for the buyers to come to them.

Sadly the buyers have slowed down too, but my sense is their patience will run out eventually.

Fingers crossed.

[panshanger1] 13/5/2024 11:51

Pushing on and decent volume today

[cc2014] 10/5/2024 12:21

I note we have got back to the 66p area where SEIT turned in early March.

It also seems to match with some chart resistance points from November and December last year.

Hopefully we will break through and then it's a clear run to around 72p

[cc2014] 08/5/2024 15:12

It looks to me like this is being very slowly walked up with someone trying to get stock cheap.

Not before time imho but I would say that. I will have to decide what to do when it gets back to 66p where it turned down last time. My inclination is to hold on as I believe SEIT to be worth more than that but that strategy didn't work out for me last time.

[cc2014] 07/5/2024 16:22

SEIT was stuck between a rock and a hard place IMHO.

It got caught with too many capital commitments when the endless issuing more shares came to an abrupt finish (like many others) Or rather imho it could just have about managed it's way through things given the free cash flow but the market wasn't prepared to tolerate that. Indeed another rise of 100bp on interest rates would have caused problems.

Fortunately that didn't happen and fortunately it's got this asset away at a decent enough price, spilt the cash between RCF repayment and investment in assets with better returns and now over the next year keep doing more of that from the free cash flow.

We will see what happens now. The market seems to want another asset sale, but I'm not bothered. More than anything it's time for Red Rochester to step up and start delivering.

[rambutan2] 07/5/2024 15:50

But did cost them £100m to buy less than 2yrs ago.

[williamcooper104] 07/5/2024 09:45

Nice - that and a bit of operational cashflow would pay of the RCF

[cc2014] 07/5/2024 09:08

Always good to see the fund manager doing what they said they were going to do. Price looks decent to me to.

[rik shaw] 07/5/2024 08:32

Yes about 8.5% based on portfolio valuation at Sept 23

[hugepants] 07/5/2024 08:18

Is that about 10% of the portfolio? Good result.

[spectoacc] 07/5/2024 07:10

"SDCL Energy Efficiency Income Trust plc is pleased to announce that it has sold its UK onsite solar portfolio, UU Solar, to UK Power Networks Services Holdings Limited, the private networks business of UK Power Networks Group, for a consideration of £90.8 million. The agreed price represents a 4.5% premium to the Company's 30 September 2023 valuation."

[121spa] 28/4/2024 09:51

Is anyone worried about SEEIT's level of debt?

[cc2014] 17/4/2024 15:59

Why am I not surprised it is M&G

[spectoacc] 17/4/2024 15:30

M&G could still have A LOT still to sell, but I'm reassured by them being arguably the single worst "OPM" investor out there.

[cousinit] 19/3/2024 13:15

Might be 2+2=5 but I think ADIG had a number of these names, so some of the weakness could be abrdn raising cash for the first capital distribution.

Just checked and most of the positions are in larger trusts like UKW, HICL etc but there is a tail of £8m across renewables and infra that they didn't disclose in the annual report and the holdings listing isn't working on the abrdn website...