Sdcl Energy Efficiency I... Share Discussion Threads

[cc2014] 04/10/2023 16:10

The last presentation says all debt is fixed for between 3-10 years.

There is no RCF, so they aren't caught by rising interest rates for a while yet.

No RCF shows really good management imho.

[jonwig] 04/10/2023 15:49

"Higher for longer" and federal shutdown are causing the eebi-jeebies in markets.

The real, as opposed to market, impact on the likes of SEIT is the debt position of investee companies. I've had a look at a big one, RED Rochester.

The equity was acquired in May 2021 for $177m. Its latest equity value is $314m, and constitutes 22% of SEIT's GAV. Project level debt is $75m. As far as it goes, that seems fine. And the SEIT annual report tells us plenty (pp 38 ff).
But how is the debt serviced, is it fixed or variable, when has it to be re-financed? Does it matter?

I haven't looked in detail at more of the portfolio as yet.

[cc2014] 04/10/2023 15:14

I find myself adding to this again

[gateside] 04/10/2023 09:33

Even though it's in the FTSE 250, ii don't do automatic dividend reinvestment for SEIT

[skyship] 04/10/2023 08:37

Herewith the link to that interview I mentioned in 174 above:

[bbd2] 04/10/2023 08:22

So annoying. Will have to take it off my watch list as my Isa is also with iWeb.

[kaffee] 04/10/2023 07:18

bbd23 Oct '23 - 15:51 - 177 of 178

Why won’t they?

===============================

Something about not deemed suitable for retail investors (too sophisticated?) so not offered.

[williamcooper104] 03/10/2023 17:21

Balance sheet is sound They've got 17 percent of assets in construction and 6 percent in development Both of these, particularly assets not yet under construction have cost risks and while the balance sheet can likely fund them the cost of doing so will eat into returns Not sure how much cash they require so hard to access the impact They assume long term RPI of 3 percent whereas most assume 2.5

[bbd2] 03/10/2023 15:51

Why won’t they?

[kaffee] 03/10/2023 15:36

If only IWeb would let me deal in these !! Grrrrrr!

[boystown] 03/10/2023 15:33

So what do the experts think now at 64p with a massive discount and c.10% yield?

Just three weeks ago, the Mail on Sunday said:

Share price performance has been disappointing, however. Midas recommended SEEIT on flotation at £1 and, by last summer, the stock had risen to £1.23. The price has fallen to just 75p since then, hit by rising interest rates, economic uncertainty and a general disaffection for renewable energy stocks.

Just a return to the "disappointing" 75p level would be a 17% return.

[skyship] 03/10/2023 15:06

EDISON just released an interview; tho' the link throws up the RGL interview, so will need to search...:

[jonwig] 03/10/2023 15:05

D G I 9 not D G 19 ?

[skyship] 03/10/2023 15:04

jonwig - DG19? unable to find!

Ahh - have done so. That's the problem with some of the infrastructure plays - transparency!

[williamcooper104] 03/10/2023 15:02

It's DGI9 as in letter I not number 1

[skyship] 03/10/2023 14:59

jonwig - DG19? unable to find!

[digger18] 02/10/2023 15:00

Surely with current $ strength and substantial earnings in same currency, this has to be a good investment at this price and yield.

[williamcooper104] 30/9/2023 12:25

The problem with DGI is that they funded their growth with short term revolving credit facilities and vendor loans rather than take long tenor project finance credit

[williamcooper104] 30/9/2023 12:22

It's higher for longer now seen as meaning higher for longer (remember rate cuts next year had been priced in) plus NEE (US poster child for renewables) tanked 15% in a week or so on announcing lower growth/higher cost AY and BEP (the latter being another poster child of the sector) down c5-10 percent tooUsed to be that development exposure was a one way bet in that you had guaranteed revenue and cost inflation wasn't a problem so absent something unexpected it was a higher return (and getting that return when the project is built and de-risked) for little extra risk - but with inflation back that's clearly no longer the case

[jonwig] 30/9/2023 10:09

The last three holdings RNSs were addings by M&G and Investec.

A distantly related company, DGI9 has serious debt issues with one of its investments; I've just been checking the last AR here, and the debt position is well-explained and I think manageable. (It's project borrowing with fixed or hedged interest and looks reasonable on a LtV basis.)

All I can think of is the Fed's "higher for longer" narrative.

[digger18] 30/9/2023 09:28

I have no idea and asking the same question.

[gateside] 29/9/2023 13:59

Why such a drop last 2 days?

[rik shaw] 10/9/2023 10:12

MOS share tip:

[2wild] 07/9/2023 14:48

That Coverd dividend looks really good. Took initial position this Morning at just under 74P including costs. Probably just a matter of time before discount to NAV narrows.

[williamcooper104] 06/9/2023 15:44

Funny isn't it Inflation - great for cashflows; woeful for values