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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Sdcl Efficiency Income Trust Plc | LSE:SEIT | London | Ordinary Share | GB00BGHVZM47 | ORD GBP0.01 |
| Price Change | % Change | Share Price | Shares Traded | Last Trade
|
|
|---|---|---|---|---|---|
| 1.70 | 3.24% | 54.20 | 2,770,676 | 11:27:30 |
| Bid Price | Offer Price | High Price | Low Price | Open Price | |
|---|---|---|---|---|---|
| 54.10 | 54.30 | 54.70 | 52.00 | 52.50 | |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Trust,ex Ed,religious,charty | -44.5M | -56.3M | -0.0519 | -10.39 | 569.85M |
| Last Trade Time | Trade Type | Trade Size | Trade Price | Currency |
|---|---|---|---|---|
| 11:36:57 | O | 8,551 | 54.2798 | GBX |
| Date | Time | Source | Headline |
|---|---|---|---|
| 23/6/2025 | 09:20 | ALNC |  SDCL Efficiency Income Trust lifts dividend amid flat NAV |
| 23/6/2025 | 07:13 | ALNC | *SDCL Efficiency says board considering strategic options to deliver.. |
| 23/6/2025 | 07:00 | UK RNS | SDCL Efficiency Income Trust PLC Results for the year ended 31 March 2025 |
| 11/6/2025 | 16:55 | UK RNS | SDCL Efficiency Income Trust PLC Holding(s) in Company |
| 11/6/2025 | 11:37 | ALNC | CORRECT: SDCL Efficiency subsidiary enters new USD260 million facility |
| 11/6/2025 | 10:36 | ALNC | SDCL Energy Efficiency subsidiary secures new USD260 million facility |
| 11/6/2025 | 07:00 | UK RNS | SDCL Efficiency Income Trust PLC Onyx Renewables Secures New Financing.. |
| 05/6/2025 | 16:44 | UK RNS | SDCL Efficiency Income Trust PLC Interim Dividend Declaration |
| 30/5/2025 | 11:43 | UK RNS | SDCL Efficiency Income Trust PLC Notice of Annual Results |
| 27/5/2025 | 17:03 | UK RNS | SDCL Energy Efficiency Income Tst Change of Name and website address |
Sdcl Efficiency Income (SEIT) Share Charts1 Year Sdcl Efficiency Income Chart |
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1 Month Sdcl Efficiency Income Chart |
Intraday Sdcl Efficiency Income Chart |
| Date | Time | Title | Posts |
|---|---|---|---|
| 23/6/2025 | 16:35 | SDCL Energy Efficiency Inc Trust | 1,141 |
| Trade Time | Trade Price | Trade Size | Trade Value | Trade Type |
|---|---|---|---|---|
| 10:36:58 | 54.28 | 8,551 | 4,641.47 | O |
| 10:33:57 | 54.10 | 159,400 | 86,235.40 | O |
| 10:32:34 | 54.28 | 27,487 | 14,919.89 | O |
| 10:27:30 | 54.20 | 380 | 205.96 | AT |
| 10:27:30 | 54.20 | 9,155 | 4,962.01 | AT |
| Top Posts |
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Posted at 24/6/2025 09:20 by Sdcl Efficiency Income Daily Update Sdcl Efficiency Income Trust Plc is listed in the Trust,ex Ed,religious,charty sector of the London Stock Exchange with ticker SEIT. The last closing price for Sdcl Efficiency Income was 52.50p.Sdcl Efficiency Income currently has 1,085,420,000 shares in issue. The market capitalisation of Sdcl Efficiency Income is £585,041,380. Sdcl Efficiency Income has a price to earnings ratio (PE ratio) of -10.39. This morning SEIT shares opened at 52.50p |
Posted at 23/6/2025 07:20 by garycook SDCL Efficiency Income Trust plc("SEIT" or the "Company") Announcement of Annual Results for the year ended 31 March 2025 SDCL Efficiency Income Trust plc (LSE: SEIT) ("SEIT" or the "Company") today announces its financial results for the year ended 31 March 2025. There will be a presentation for analysts and investors at 9.30am today. To register, please follow this link: hxxps://sparklive.ls The Company's full Annual Report and Audited Financial Statements for the year ended 31 March 2025 can be found on the Company's website: hxxps://www.seitplc. Highlights · Net Asset Value ("NAV") per shareAPM of 90.6p as at 31 March 2025 (30 September 2024: 90.6p; 31 March 2024: 90.5p) · Investment cash inflow from the portfolioAPM of £97 million on a portfolio basis(APM), up c.5% on the prior year · Aggregate dividendsAPM of 6.32p per share declared, in line with target for year to 31 March 2025 · Dividend cash coverAPM of 1.0x for the year ended 31 March 2025 (31 March 2024: 1.1x) · Target dividend guidance increased to 6.36p per share for the year ending 31 March 2026 (31 March 2025: 6.32p), 1.1 - 1.2x cash cover targeted · Profit before tax of £70 million for the year ended 31 March 2025, reversing a loss of £56 million in the prior year · Portfolio valuationAPM of £1,197 million as at 31 March 2025 (30 September 2024: £1,102 million; 31 March 2024: £1,117 million) · Gross disposal proceeds of c.£90.8 million from disposal of UU Solar in May 2024, which represented a small premium to September 2023 valuation. Alternative Performance Measure (APM): See Annual Report Glossary of Financial Alternative Performance Measures for further details on APMs used throughout the report. Tony Roper, Chair of SEIT, said: "SEIT's operational performance was generally in line with expectations in the year, with the portfolio delivering its targeted distributions to fully cover the dividends for our shareholders. "While dividends have increased and operational performance has improved, we, like many of our peers, remain frustrated that our share price has drifted down and our shares continue to trade at a material discount to NAV per share. The status quo is clearly unsustainable. With this in mind, we have announced today that the Board are considering all strategic options to deliver value for all shareholders in an effective and efficient manner." Jonathan Maxwell, CEO of SDCL, the Investment Manager said: "SEIT's large and diversified portfolio demonstrated resilience amidst global economic and geopolitical uncertainty. The portfolio delivered growing operational performance, in line with expectations, to fully cover dividends, despite significant CapEx during the year. Thanks to recently agreed portfolio-level debt financing facilities, the focus going forward should be less on investing and more on delivering increased operational performance. "Structural trends such as persistently high energy prices and increasingly unstable grids reinforced the value proposition of SEIT's decentralised energy efficiency assets during the year. Expected growth in US industry and data centre construction globally should represent operational tailwinds moving forward. "Current market dynamics continue to significantly impact share prices across the infrastructure and renewable energy investment trust sector, and SEIT has been no exception. We have intensified efforts to position SEIT's assets for NAV growth, and the Company's balance sheet has been optimised. We are also progressing opportunities across the portfolio to release liquidity, reduce gearing and recycle capital, as we to seek to protect and crystallise shareholder value." -ENDS- |
Posted at 12/6/2025 17:30 by value hound Tip of the week in the ICBag a 14% yield with this trust Investors are being paid to wait for a recovery in sentiment towards this energy efficiency trust With every single renewable energy infrastructure trust trading well below its net asset value (NAV), pinpointing the best opportunities is tough. The entire sector looks cheap, but it is also facing significant headwinds, and catalysts for a quick recovery are in short supply. However, some of these trusts stand out for their juicy yields and especially disproportionate discounts – and SDCL Efficiency Income (SEIT) is an obvious example. SDCL Efficiency Income bull points - Outsized discount to NAV - Attractive yield - Diverse portfolio of energy efficiency assets - Potential for corporate action Over the past three years, renewable energy trusts have faced a perfect storm. Until the second half of 2022, investors flocked to the sector because it was hard to find equally attractive yields elsewhere. But the rise of interest rates created competition from other income assets, chiefly bonds and cash, which had previously offered much smaller payouts. Meanwhile, discount rates increased, impacting valuations. Share prices started trading below the trusts’ NAV, and have not recovered since, which also means they can’t raise equity to grow or pay off debt. As at 5 June, the Association of Investment Companies’ renewable energy infrastructure sector was trading on an average discount of 28 per cent, reflecting an imbalance between supply and investors’ demand for this kind of asset. Excluding trusts with less than £200mn in assets, SDCL was the cheapest of the pack by some distance, with a massive discount of 52.1 per cent. The depressed share price means that the trust currently offers a yield of about 14 per cent. In many cases, investors in the renewable energy infrastructure sector are being paid to wait for either a recovery of the share price or some form of corporate action; with SDCL, the pay on offer is especially handsome. SDCL is a little different from the average renewable infrastructure trust investing in, for example, wind or solar farms. Instead, it focuses on the theme of energy efficiency, starting from the idea that about two-thirds of the energy we produce gets lost in the processes of generation, transmission and distribution. SDCL invests either in assets that generate energy at the point of use (where it’s needed, so it doesn’t get wasted in transport) or in those that reduce energy demand. The trust has strong environmental credentials, which ethically minded investors will appreciate in addition to the investment case. It is an ‘article 9’ fund under the European Union’s Sustainable Finance Disclosure Regulation. This is the highest sustainability rating, reserved for the so-called ‘dark green’ funds, and means the trust pursues a specific sustainable investment objective – that of “climate change mitigation through investments in energy efficiency projects”. The portfolio is performing roughly in line with expectations. The trust’s dividend has been gradually growing every year since it launched at the end of 2018, and dividend cover is expected to remain stable at around 1.1 times for the year to 31 March 2025 (results for which are due on 23 June). SDCL Efficiency Income bear points: - Uncertain regulatory and economic backdrop - Inability to raise cash could compromise growth While risks do exist, the discount to NAV appears disproportionate for a portfolio that is generating cash and has potential for further growth. Stifel analysts say that a share price of 44p (where it stood as at 5 June) looks “clearly disconnected from the fundamentals” of the portfolio. To put things in perspective, SDCL is currently a lot cheaper than the battery storage trusts, despite having encountered none of the issues they have faced. As at 5 June, Gresham House Energy Storage (GRID) and Gore Street Energy Storage (GSF) were trading at a discount of 35 per cent and 37.3 per cent, respectively. Last year, the former had to cancel its dividend and the latter had to reduce it, because their batteries were struggling to generate revenue due to issues with the electricity grid. But earlier this year, a bidding war to acquire the third battery storage trust, Harmony Energy Income Trust (HEIT), together with some revenue improvements, boosted share prices across the sector. Over the same period, SDCL’s share price has instead continued to gradually tick downwards, particularly after the re-election of Donald Trump to the White House. A mixed bag SDCL’s discount is not wholly unjustified. For starters, it is not the easiest portfolio to understand or value. It comprises about 50 projects that all do different things, but the top five assets make up the majority of the portfolio. These include Onyx, which provides on-site generated solar power to a range of commercial and industrial buildings. Another major holding, RED Rochester, is “one of North America’s largest district energy systems”, comprising a network of insulated pipes providing heat and energy to various buildings from a centralised location (this is a lot more energy efficient than each building having its own boiler). On one hand, the trust is more diversified than some peers, because the portfolio covers a range of technology and asset types. On the other, it’s harder to get a good grasp of what you are investing in. A major contributing factor to the discount is likely to be the trust’s US exposure, which stood at 67 per cent at 30 September 2024. Evidently, green energy is no longer at the forefront of the agenda across the pond, and SDCL’s portfolio does have some exposure to US green credits and tax credits. But this is quite limited, and overall the portfolio should be relatively insulated from potential regulatory changes. |
Posted at 07/6/2025 07:47 by cc2014 Is the extra Onyx capacity really a game changer?All the new capacity has all been financed with debt at Sonia plus 275bp. Call that 7.25% with some arrangement fees. Add some O&M costs plus SEIT's management fee and that comes to say 8.25%. SEIT have stated that all their new investments are making IRR's of mid to low teens. I'm going to call that 12% for solar as it's not so risky, which means for every pound invested, the return is about 3.75% on a marginal basis. That would be an extra £3.75m cashflow on an additional £100m invested. It's hardly going to change the profitability that much. Yes, lots more lovely EBITDA, but EBTDA would be more helpful. The debt has now been refinanced. To what price we don't know. It should be less than 275bp so we can all make our own judgement on that. I don't see the refinancing as exciting. One could argue it makes Onyx more a standalone business, with it's own term loan and RCF ready to sell. I do like that SEIT have finally done this in dollars not pounds something they should have addressed long ago. (what is the letter of credit for btw. I don't understand that bit) The greatest issue for SEIT remains with me that they are selling off the decent stuff with long term cashflows to support business units that do not have these attributes, because their gearing is out of control. It's classic and not healthy and means you end up with a different set of shareholders. I'm still struggling. So, what they do is sell off UU with a PPA (at a loss) which is solar panels in a field to sort the gearing, to install new solar panels in different locations. I mean, why bother. And now they are selling off the solar entity again to get out of a gearing mess. |
Posted at 06/6/2025 11:02 by cc2014 I have been musing on this one for some time.It is clear from the trades that a couple of parties want out and the bar is currently set at 44p. What is surprising me is the volume going through over the last few weeks. It's really quite significant compared with the volume in issue and we haven't seen any RNS's. I'm not sure what that means. Possibly at some point we will see a massive transaction but the number of parties with sufficient shares to put through a transaction to account for the volume going through is limited. The sellers really are quite determined. It's clear if they slowed down their selling the share price would rise but instead they are incentivising volume by keeping the price attractive. It feels like there are two or three sellers vs the rest of the market. One would think that eventually the rest of the market will win as the sellers cannot have infinite shares but it is unknown whether this will happen before the annual results. Further I don't know why the big sellers are selling and that's worrying me. Sometimes these big institutions know stuff we don't but equally we seen in the past many instances where the sellers are just plain giving away their shares cheap for no reason we ever find out. However, I note there is more than one party selling and that leans me towards in this case it is based on knowledge rather than stupidity. What I do know is this is not good. The FTSE has rallied massively, the whole sector has been and still is moving up and yet SEIT continues to sit at what is more or less an all time low. I fear the price for Onxy will be lousy, but even if it's 80% of NAV is that so bad if you are buying here at 44p. It would help resolve the gearing issue which is what is worrying me most. I also fear a downturn in the US economy due to Trump will be painful for SEIT. That is more difficult to work out as that's going to affect income, expenditure and interest payments. If the downturn is significant this is not the place to be, but you could say that about any share with US exposure. I guess in the end this is either a case of the sellers finish and the cork in the bottle is released and it's easy money or there is a fundamental issue at the operational level and the share price will fall again. I don't think there will be anything of interest in the annual results. Apart from the EBITDA. Surely SEIT will report that? |
Posted at 30/5/2025 13:03 by cc2014 Ok, so I've been trying again to try and establish whether the share price is bargain of the century or whether it's correct.Largely I've given up but I've had another go. It's just so difficult. You will have to excuse my natural cynicism. What I wanted to know about was the investments. What are they actually invested in. So, I tried the website The portfolio page is poor. The biggest aren't first, neither are they alphabetical and it's out of date and doesn't look like it's been updated for over a year. The first one on the list is Turntide. It makes motors. A business SEIT is invested in and exposed to Trump tariffs. The second one is Iceotope. SEIT put £3m in this in 2022 and as far as I can tell from the accounts it looks loss making. Not that it matters as I've no idea how much SEIT value it at. But anyway the good news is that SEIT is negotiating to invest up to another £100m in project financing The third is FES. First refusal rights to fund a £150m pipeline. ! I got bored then but did take a look at Commercial RED as I think I understand that one as there is plenty of detail in the annual report. The third bullet point says "Since 2016, RED has delivered" And it ends there. What has it delivered? Who knows? It's laughable really. |
Posted at 22/5/2025 08:50 by cc2014 I wanted to express my view to maybe help. I have a bunch of friends in this Trust, so I'm reluctant to write anything bad but it might helpFirst I used to be a shareholder in SEIT but now I'm not. It used to be my largest holding. My buys ranged from 50p-70p, average about 61p and I sold out at 51p. I held for a while so had some dividends along the way but a decent sized loss nevertheless. The size of my holding indicated my belief at that time. I sold out of this along with nearly all my other equities a couple of months ago when Trump tariffs appeared. I was already nervous but the impact of Trump tipped me over the edge. In terms of my thoughts now, my gut says keep out. There are too many amber flags. First the easy part. If I stand back and look at management decisions over the last couple of years they have been poor. They bought assets at the top of the market and those they've developed have had constant time over-runs. I suspect cost over-runs too based on the turnover of operational staff. Indeed even recently I discovered that until about a year ago the management of Red Rochester was outsourced and they've had to bring it in-house. So, I don't rate the management and that's always going to affect the share price. Secondly I do not believe the management are financially adept and further I believe the management have sought to be oblique over the numbers. I want to put the next parts in bold but I don't know. The mandate for this trust allows gearing of 65% of NAV. That's just nuts. This isn't a bunch of solar panels in a field with 20 years of government guaranteed subsidies. Mostly this Trust is a bunch of businesses exposed to the ups and downs of the economy . We see that for example with Red Rochester missing it's EBITDA by 20% a year or so ago. They are matching huge gearing with volatile revenues and on top of that the mandate allows much more gearing than any of the other renewables trust which are around 50%. They constantly miss the RCF target. This from page 35 of the annual report. "The RCF could be £110-£130m drawn at Sept 24" wtf does "could be" mean. Anyways the actual outcome was £165m. What happened? did the revenue miss or how did they and extra £40m or so? It's kind of worrying. And as of March 25 the RCF is now £235k drawn out of a facility of £240m. Basically they've hit the limit. So, how much is the gearing do I hear anyone ask. This is what they say in the interims at Sept 24 on page 10. "As of 30 September 2024, the total gearing as a percentage of enterprise value was 35% with structural gearing at 24%. Not too bad I hear you all say. Pretty low compared with most. Conservative really. The same numbers are scattered everywhere over the annual reports But, but, but and you know what's coming now. It's isn't either of those numbers in any traditional sense. There's a tiny note at the bottom of page 10. "The total gearing as a percentage of NAV was 53% with structural gearing at 37%" So, if the gearing was 53% when the RCF was £165m, how much is it now with the RCF at £245m. I could work it out but I cannot be bothered. It's too high. Far too high. But mostly I feel cross that SEIT are being opaque, not really transparent about this. They are using financial engineering to make this all look better than it is. They've been oblique for some time and IIRC took a position at one time that they weren't reporting EBITDA. I accept that there's a bunch of additional revenue coming down the line as the new assets have come on stream and the EBITDA numbers and cash generated are going to get much better. So, is it all in the price? I don't know. This is kind of a long post but I can see why the major institutions are selling out. If for nothing else that gearing number at now well over 55% and approaching 60% is going to mean they want out. Which may mean this is a bargain as they are forced sellers or may mean if Treasuries continue to go up this is a mess. If I could work out the new revenue coming in that would help but SEIT as ever are quiet on that I think. |
Posted at 20/5/2025 07:25 by cc2014 With regard to the price action subsequent to the "large 26m trade".Firstly to put this in context. Back in the old days £11m of stock would have been nothing. It's the sort of lump the institutions would chuck around or could be offloaded in smaller lumps in the market. Not so these days. Finding a buyer for that sort of amount is difficult. That's due to the madness of many people's preference for low cost trackers. The two large sellers have been Rathbones and Investec. I find it highly unlikely it's Rathbones. It's not their usual way of selling and they tend to report each time they drop a percent. It might be M&G. They do definitely want out and I'm sure they would sell at the right price but usually their large sales tend to be with another buyer not dumped on a MM at significantly below the share price. It could be that now they are down below 5% they have less reason to not destroy the share price but nonetheless it doesn't feel like them Which leads me to my guess that it's another party and they only way they could get of their stock given there were two other known sellers in the market was to take 45p below the prevailing 47p at the time. The trade does not appear to be matched with a buyer who is a long term holder or the MM are still working it or the 26m is only part of the seller's holding and there is more to come because the share price is still falling against the flow of the indices. I guess the question is whether the seller knows something or has just taken a decision to sell out. My gut says that if the share price continues to fall at the pace it is, which is around 1% a day, again noting that's in the opposite direction to the indices, then there is likely bad news on the way. HL report the all time low of 43p. If it gets there I would see that as confirmation this is just a portfolio clear out. Finally if Simply Wall Street is to believed nearly every large shareholder is selling down apart from GASC and the only buyers are retail (HL and II through Aberdeen) My guess would be is that someone thinks long term prospects for Onyx are not good due to tariffs on panels or someone thinks Trump's actions will adversely affect Red Rochester. I suspect both are true but the share price is pretty low to compensate. I note that neither GASC or the directors are buying down here. |
Posted at 11/4/2025 12:30 by cc2014 log - since it's been 3 hours without a reply for you I'll try. I think that's saying something about how when markets start falling PI's lose money and disappear.I don't have a position in SEIT but I used to. It used to be my second biggest position and over 10% over my portfolio. I sold out in Feb/Mar when Trump starting kicking off about tariffs on Mexico and Canada. I sold nearly every equity position I had regardless of price. Some have proved to be amazing sales, some less so but on balance it worked out well. I have been through the accounts and every presentation SEIT done multiple times with a fine toothcomb. As far as I can work out the dividend is fully covered after payment of the fund expenses. I've spent hours looking at it and that's my view. However, I'm only 90% sure on this and it's not because I don't trust my own ability to read the accounts, it's because some of the information is just a tiny bit more oblique than it needs to be. It's kind of like there is no red flag but there are too many amber ones. A nagging feeling in my gut. Personally I wouldn't be too bothered about dividend cover though. I'd be more bothered about the impact of a possible recession in the US and the impact on SEIT's customers. I have no way to analyse this in any reasonable detail. Clearly the price reflects something I am missing (or maybe the share price is just wrong. It wouldn't be the first time) |
Posted at 31/3/2025 17:14 by keith95 "SEIT my largest holding and I bought yet more this morning."For good or bad likewise, likewise. "Sale of UU Solar The agreed price represents a 4.5% premium to the Company's 30 September 2023 valuation." As a rough guide: "Net Asset Value ("NAV") per share(APM) of 90.6p as at 30 September 2023" "Net Asset Value ("NAV") per share of 90.6p as at 30 September 2024 (31 March 2024: 90.5p; 30 September 2023: 90.6p)" I agree entirely that NAVs, as illustrated by DGI9, can be taken with a pinch of salt on some occasions - but at the end of the day, DGI9 was a distressed seller, bought what it thought was great value in Arqiva only to find out that it could not squeeze out annual revenues from Arqiva, causing a cash squeeze, that sank the investment trust. In respect of MNG and Rathbones - both had open ended funds in the sector I believe that I suspect have seen forced sellers as people have exited the sector, forcing the liquidation of assets. I asked ChatGPT: SDCL Energy Efficiency Income Trust Plc (SEIT) is an investment trust listed on the London Stock Exchange that focuses on energy efficiency and decentralized energy generation projects. SEEIT +9 Bloomberg +9 Hargreaves Lansdown +9 If you're interested in investment trusts that hold shares in SEIT, several exchange-traded funds (ETFs) include SEIT in their portfolios. For instance: The Vanguard FTSE 250 UCITS ETF (Ticker: VMIG) holds SEIT shares, with SEIT comprising approximately 0.19% of the ETF's portfolio. TipRanks The Global X Superdividend ETF (Ticker: SDIV) also includes SEIT, where it constitutes about 0.31% of the ETF's holdings. TipRanks These ETFs provide indirect exposure to SEIT through their diversified holdings. TipRanks Additionally, major shareholders of SEIT include institutional investors such as Schroders PLC, which held approximately 11.99% of SEIT's shares as of February 2024. |
Posted at 09/12/2024 16:07 by spectoacc Flamboyant rhetoric :)Not convinced much of the sector fall is Trump-related - few of mine have much going on in US, & those that do (GSF; SEIT) aren't much affected. Eg BSIF, FSFL etc. "Kepler View In the weeks before SDCL Energy Efficiency Income's (SEIT) results announcement, the Morningstar Renewable Energy Infrastructure peer group in which it sits experienced significant discount widening, seemingly a result of the US election and investor worries about the different approach the new administration is expected to take to renewable energy. Share prices of other renewable energy companies were similarly hit. While it's quite likely in our view that this is a sector-wide over-reaction, SEIT has some specific differences in its business model compared to the peer group. First, the vast majority of SEIT's revenues do not rely on any form of subsidy or incentive, and its projects are primarily rooted in their commercial attractions. Second, SEIT has very limited merchant exposure, with most of its long-term revenues contracted, and low direct exposure to power prices. SEIT is really an equity investor in platforms that provide corporate customers with efficiency solutions, so it participates not only in the contracted revenues that come from these solutions, but in the growth of the platforms themselves. Third, SEIT's project-level debt is mostly amortising and so is repaid over a period of time, with many of its assets and investments extending well beyond the life of the debt, giving the trust different options in the future to enhance earnings. The team also point out one of the first moves made by the new US administration was the formation of a new Department of Government Efficiency, so 'efficiency' appears to be a positive theme in the US, which SDCL counts as its single largest country exposure at 67%. Without getting into the flamboyant rhetoric, it is fair to say that the incoming US administration has an agenda much less focused on 'energy transition' and whatever the practical realities that unfold over the next few years, this is a negative for investor sentiment right now. We think SEIT's business model, while aligned with energy transition, is relevant to customers with concerns about energy security, either more locally due to extreme weather events, or more widely due to geopolitical instability, as well as more straightforwardly simply helping customers to reduce costs. Thus, in our view, SEIT's business model doesn't really align with the main negatives of investor sentiment, and as the board's plan to address the discount unfolds, the current discount could prove to be a significant opportunity." |
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