Triple Point Energy Tran... Share Discussion Threads

[cc2014] 27/3/2024 15:32

Nice RNS today.

Another £5m turned into cash for redemption.

[cc2014] 25/3/2024 13:14

Wind up resolution passed on Friday.

Share price creeping up a little as a result

[manrobert] 08/3/2024 16:57

I guess that large late trade was actualy a buy.

[cc2014] 08/3/2024 13:21

What do you want me to say? The trust will be in managed wind-down and it will take years to get all the money back. Some assets they will be able to sell off and some they won't. Or at least it doesn't look likely with interest rates at 5.25%. If you see interest rates falling back to 3% it's going to get far easier to sell the loans and assets as the returns are going to look far more attractive.

If you are invested in this you have to accept some of the money is going to come back to you reasonably quick and some make take years. Glasshouse looks like one of those which will take a long while to shift but with gas prices now down to a level that is lower than before COVID the profitability at Glasshouse should no longer be a concern.

[solarno lopez] 08/3/2024 12:47

But CC you make no comment of one of the largest investments namely Glasshouse Tent needs to shed.

[cc2014] 08/3/2024 12:30

TENT's investments are generating returns of around 8%. If you were paying 100p for a return of 8% you might be grumpy but you are only paying around 65p which means we are making 12.5% while we are waiting plus in time we will get some capital uplift.

Also it's good news for us the battery loan is one of the first to be crystallised. The market was nervous about this (see HEIT, GRID and GSF share charts) which caused the recent fall in the share price). Also IIRC the loan was at 7% (although it had some profit sharing attributes which atm look probably worthless) so I'm more than happy for the fund to get the cash back with the appropriate interest

[solarno lopez] 08/3/2024 12:11

When you put it in ‘black n white’ as SteMiS has done it looks like we could be waiting a long time for a payout on this particular investment of Tents

[manrobert] 07/3/2024 09:24

wond/er if we will get an update from simon tomorrow

[spectoacc] 06/3/2024 10:03

Absolutely. Anything trendy, anything ZIRP-era, tho not all are HOME or DGI9.

But how many have proven successful..

Might add to be wary of anything "seeded" with a portfolio from a parent/manager, and anything with related party transactions (SONG another that stinks).

[stemis] 06/3/2024 09:58

I'm pretty sceptical of these small 'enery efficient' investment vehicles like TENT which sought to ride the somewhat trendy 'environmental' wave and now sit on big 'discounts'. Part of TENT's NAV of £95.1m (95.1p/share) comprises loans to CHP producers Harvest and Glasshouse. For anyone who's interested...

Harvest is Harvest Generation Services Limited. Accounts are available on companies house web site. As at 31 March 2023 (last accounts) it owed TENT £9.2m. Harvest had net assets of £3.6m and appears to be loss making.

Glasshouse is Glasshouse Generation Limited. Accounts are available on companies house web site. As at 31 March 2023 (last accounts) it owed TENT £9.2m. Glasshouse had net assets of £4.3m and appears to be profitable in the year but has losses brought forward.

These loans add up to £18.4m (18.4p/share). Loans are due for repayment in 2031. Will be interesting to see how TENT recover this money before then at full value.

[tigerbythetail] 05/3/2024 19:12

Take a closer look at today's RNS. It's phrased opaquely (perhaps deliberately), but TENT admit that there is a problem with their CHP investment.

[manrobert] 05/3/2024 10:50

i cant quite understand why this share is down.is it because people cant wait a year for a guaranteed profit

[apollocreed1] 21/2/2024 15:20

@hpcg - Thanks for your comment.

So I took a look at the last TENT interim report in September 23. They have a £50m RCF of which they have only taken £2.4m. The interest rate on that is 6%. It's only worth borrowing if the money is invested in a much higher yielding asset. It seems that by the time they got going, interest rates were too high for borrowings to add to returns. They have been looking into expanding or renewing the RCF and the rates they were offered were even higher than 6% so they shelved that idea.

£94.5m net assets including £2.4m cash.

Doesn't look like there is much to worry about with regards to the battery storage investment because they have an offer to buy it from them which they expect to complete at the end of March 2024. That was a £37m commitment of which £26.9m is undrawn and they were going to finance that with the RCF facility. Assuming this transaction proceeds, there will be no debt at all.

That only leaves £5m of a loan they made to Innova to invest in battery and solar, so it's just a small proportion of the portfolio.

One negative is that the weighted average discount rate across the portfolio is only 7.3%. That's very much on the low side when compared to other renewable ITs. There would be a hit to NAV if that was increased. But TENT looks to be in pretty good shape otherwise.

[hpcg] 20/2/2024 16:07

apollocreed - gearing can be complicated. There is gearing at the top level and separate gearing at owned investee companies that is non-recourse. Then there is the gearing at unowned debtor companies, which matters if any monies lent are not senior. Mix in partial ownership and it is just muddy. We rely on management commentary and honesty about the state of individual operations. My understanding though is that there genuinely isn't any debt here; they haven't been around long enough for any one to lend them money :-))

[apollocreed1] 20/2/2024 15:19

I wonder how accurate the Morningstar data is, but there is an IT screener on the AJBell website. According to that, TENT has zero net and zero gross gearing.

That's a big plus in its favour.

Comparable peers on similar discounts are between 39% and 86% net gearing - NESF, FSFL, ORIT, USF, DORE, BSIF, AERI, JLEN and Greencoat Renewables.

These ones are also on pretty low net gearing levels:

AEET-0%

GSF-0%

GCP-9%

SEIT-7% (Although the recent Hardman report say they are on a 44% gearing so not sure if the Morningstar figures are accurate)

TRIG - 4%

PINT - 0%

[manrobert] 20/2/2024 07:04

market makers appy to take stock offered as tey know share is going higher.

[spectoacc] 19/2/2024 16:11

Must admit I bought TENT previously with no knowledge of it having any BESS exposure - and was surprised to read the ST IC piece talking up the BESS side. Almost as if he wrote it before HEIT/GRID/GSF issues..

Actually in fairness:

"The company has also announced that it has received an offer in relation to the sale of the group's debt facility provided to a subsidiary of Virmati Energy for the purposes of building out a portfolio of battery storage (BESS) assets in the UK. The offer values the facility at book value and completion would allow the group to deleverage and cancel its revolving credit facility. "

[apollocreed1] 19/2/2024 16:10

That report also mentions low dividend cover for SEIT and debt at 44%. So SEIT has its risks. But then I'm now looking at Cordiant Digital on a 44% discount and I can't see any financial issues with debt or divi cover - it could make sense to switch to that.

[apollocreed1] 19/2/2024 16:07

@SpectoAcc - I just looked through the recent Hardman Research report on TENT. They mention that Battery storage is 30% of the portfolio and the largest asset is Auchterawe in Scotland. I would be OK with offshore BESS but they seem to have all the battery storage in the UK - so you make a good point - those might need to be written down.

[spectoacc] 19/2/2024 12:30

Or NESF? But I can't get with these wasting-asset-pay-back-your-capital ITs.

Fwiw I hold GCP & SEIT, but not TENT. SEIT I have at a much higher average, albeit the divi has been nice.

[hpcg] 19/2/2024 12:18

Put TENT on a comparison chart with GCP and SEIT. Over 3 years they follow each other down. Over 1 year TENT is flat. SEIT took the big dive this year and GCP is flat since November 2023. It is unfair to judge them all equally in some sense, not least because TENT goes no debt at the top level soon. That said I suspect they all have a similar degree of NAV trimming on a cash value basis. So timing is a significant element of comparable returns.

Timing for TENT looks too late relatively speaking. I don't mean in an absolute sense, just relative to alternatives. Looking backwards of course, looking forwards, the important direction, is more difficult. The one to watch maybe is Foresight Solar, which is dropping.

[spectoacc] 19/2/2024 06:46

One quick q for TENT owners - ST talked about their BESS assets, hadn't been aware they had any. Are those likely to have been hit (valuation wise) in the same way GSF/GRID/HEIT's will be hit?

Agree Opportunity Cost continues to be a big thing in this market. Cheap isn't good enough.

[apollocreed1] 19/2/2024 01:18

@hpcg - You make a very good point. There are also lots of established renewable energy companies on 28-32% discount like ORIT, Foresight Solar, Next Energy Solar, GCP etc
I also hold SEIT and think it is very good value.
But TENT has very good quality assets that so far have not been hit by any unexpected bad news.