Triple Point Energy Tran... Share Discussion Threads

[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.

[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