Triple Point Energy Tran... Share Discussion Threads

[hpcg] 18/2/2024 16:23

With so much opportunity elsewhere on the London market, not least in proper trading companies depressed by liquidating or capital returning funds I don't think the discount here is sufficiently attractive. Depending somewhat on how drawn out the wind up would be, how over time the discount closes until ultimately the percentage of NAV finally realised, and how this compares with funds paying similar dividends with similar discounts.

SEIT is a reasonably good analogue, with greater scale but not winding up, though it is looking to sell some assets. If that were to perform approximately the same as TENT then what would be the point of deploying money here? The Simon Thompson premium / adjustment call it what you will hasn't helped.

[mwj1959] 09/2/2024 15:24

I agree that there is "guilty by association" share price risk even if TENT and DG19 are very different investment propositions. And I'm sure that was one of the reasons behind the recent weakness in the share price However, personally I think it was BESS related risks on the back of divi cuts etc. from the battery storage companies that was probably the main driver.

[stemis] 09/2/2024 08:11

IC - Simon Thompson's Bargain Shares list

[balcony] 09/2/2024 08:10

Tipped in IC.

[cc2014] 09/2/2024 08:07

Tipped somewhere or latest update leaked?

[mwj1959] 05/2/2024 12:22

Dividend risk, concerns over BESS asset sale and 30%+ in BESS assets all a concern, but at 55p that may well be in the price now. Given problems elsewhere Board probably needs to provide some sort of update.

[manrobert] 05/2/2024 10:31

the secure.any comments welcome.r is an amazing amount of selling of this share although the basic facts look

[tigerbythetail] 02/2/2024 11:15

Probably down to the troubles in the BESS market, as reflected by the share prices of HEIT and GRID.
There might also be spillover from the troubles of DGI9, which is also managed (better mismanaged?) by Triple Point.
IMO, it will be a big positive here if and when the proposed BESS asset sale closes.

[manrobert] 29/1/2024 09:43

this share has lost its momendum

[davebowler] 23/12/2023 15:24

Simon Thompson .....I'd be overweight renewable energy. I put readers into a stock called Triple Point Energy Transition (TENT) a couple of months ago; it's currently trading on a 40 per cent discount to net asset value. It's hardly got any debt. It pays a 10 per cent dividend yield, which is fully covered by operational earnings. It invests in hydro plants, battery farms, solar parks. The rule of 72 tells you in seven years' time you'll double your money just by recycling the dividends back into the shares. And you're probably going to double your money far sooner because I can't see it still trading on a 10 per cent yield in seven years'

[misterd1] 13/12/2023 16:16

I wonder if any other trust/PE fund would be interested - assets on the cheap

[cc2014] 13/12/2023 13:41

Thanks for your post Dave.

I think there's a bit of frustration here all around. The fund manager deployed the capital as requested, has set it up with long term revenue streams and now the funds that invested want their money back.

It's just one of many in this situation.

It seems a bit bizarre to me. Just as we are getting to the turning point in the interest rate cycle, with 10 year gilts now down very significantly off the highs, thus at the point when things will start to go TENT's way the institutions want to give up.

Oh well. I'll wait and collect my 90p in the wind up. It doesn't really matter to me how long it takes to do, I'm happy to collect the dividends while I wait.

[davebowler] 13/12/2023 09:38

Liberum-
Orderly realisation of assets and return of capital proposed
Analysts: Alex O’Hanlon and Shonil Chande

Mkt Cap £58m | Share price 57.5p | Prem/(disc) (-39.5%) | Div yield 9.6%

Event

Triple Point Energy Transition’s board has determined that an orderly realisation of assets and return of capital provide the best path to optimising shareholder value. Details of the proposals will be disclosed in Q1 2024.

Sale of Field debt facility

TENT has also received an offer to acquire the company’s debt facility provided to a subsidiary of Virmati Energy (trading name: Field), for the purposes of the construction of a portfolio of UK Battery Energy Storage System assets. The offer would see the TENT receive the full carrying value of the loan should it progress to completion. To date, c.£10.1m (of £37m committed) has been drawn under the facility.

Liberum view
This morning’s announcement doesn’t come as a great surprise, given the persistent discount and inability for TENT to achieve scale since its IPO. We think management has done a decent job and the portfolio was certainly a differentiated option in a crowded peer group, but with a market cap of less than £60m and no visibility over raising capital, the writing was on the wall. We welcome the board’s proactivity in recognising this and hope to see more boards following suit. With 22 investment trusts in the renewable infrastructure sector, further wind-ups and consolidation is required, if the sector is to address the supply/demand imbalance that currently exists in the companies’ shares. TENT looks like an attractive trading opportunity, given the 40% discount on which the shares trade, although transaction activity has dried up over the last 12 months, so a portfolio sale could take some time. That being said, the sale of the debt facility in line with carrying value is positive and we think the rest of the portfolio is also in good shape.

[davebowler] 13/12/2023 09:04

''In the three years since its launch in October 2020 ("IPO"), the Group has worked towards achieving the goals set out at IPO including putting in place predictable, long-term cash flows and targeting total NAV returns of 7-8% per annum following full investment.''

[redhorse2020] 13/12/2023 08:35

Yes, it's a shame, seemed like a well run fund. Guess that explains the delay in updating the market.

[misterd1] 13/12/2023 08:06

I'm saddened with this announcement - an effect imo of the market getting it totally wrong

[redhorse2020] 05/12/2023 08:26

Any idea when the next update / dividend declaration is dude for TENT? Would've thought we'd have heard something by now...

[cc2014] 05/10/2023 11:24

If you mean the share price losses then I refer you back to my post 19.

Since then they have made another loan for battery storage where one may like to carefully consider the counter-party.


In the end it's all about what investment returns they are getting and the credit risk behind the borrowers.

[apollocreed1] 05/10/2023 11:17

Can anyone please answer this question:
Are the losses that TENT are suffering mainly due to bad management or bad macro conditions?

[davebowler] 19/6/2023 16:41

htTPs://uk.citywire.com/partners/redirector.aspx?contentid=2419695&deliverytargetcode=web3__sections__investment_trust_insider&re=110189&ea=252901&utm_source=

[tigerbythetail] 19/6/2023 08:44

Results out.
Stronger than I expected, with no significant red flags as far as I can see.
Much depends, of course, on how UK interest rates move in the short / medium term.

[spectoacc] 09/5/2023 08:52

Citywire on TENT, fwiw:



Think my headline might have been: "Better to be in TENT, p*ssing out".

[davebowler] 27/4/2023 15:55

Edison-Triple Point Energy Transition:Pitching TENT – a diversified energy transition storyTriple Point Energy Transition (TENT) invests in a portfolio of energy transition technologies aimed at reducing CO2 emissions in power Fgeneration, storage and consumption. We view dividends as fully covered by cash flow in FY23 and forecast that dividend cover will reach 1.2x by FY25. NAV return for the 9M to December 2022 was 7.8% and we see scope for growth in NAV/share given TENT is still rolling out its portfolio of cash-generative assets, all else being equal. Its existing investments include run-of-river hydropower assets in Scotland, a debt provider to a rapidly growing portfolio of battery energy storage systems (BESS) and combined heat and power (CHP) plants co-located with food producers. Led by Jonathan Hick, TENT's team focuses on specific high-return/less commoditised niches in the energy transition sphere. In our view, the fund is trading at an unwarranted discount to NAV with an attractive dividend yield of nearly 9%.

[cc2014] 17/4/2023 15:19

I think we can conclude that given the length of time this has now been down here that there's something not right as very many analysts will have looked at this by now.

Also, unless you're the MM's friend it looks like it's 59p to sell for amounts even as litle as around £10k.