Vh Global Sustainable En... Share Discussion Threads

[speedsgh] 16/8/2023 06:34

Good spot @rambutan2. Reassuring to have a trust like Witan increasing its stake at current levels.

GSEO is now their 3rd largest holding (behind GMO Climate Change Fund & Apax Global Alpha) representing 2.5% of their entire portfolio.



Last month’s investment activity is highlighted overleaf. The largest transaction was a near-doubling of our investment in the VH Sustainable Energy Opportunities Fund. This was at a discount to the market price, benefiting from an impatient seller during a quiet period in the markets. Its investments in renewable and sustainable energy assets have gained from the long-term tailwind from climate change commitments, as well as the level of energy prices more generally.

[rambutan2] 16/8/2023 03:02

WTAN doubled its stake at 80p on 26/07:

[rambutan2] 13/8/2023 21:09

Noted, from the 2022 prospectus, worth bearing in mind:

8. Discount management
8.1 Share buybacks
The Directors have the authority to purchase in the market Ordinary Shares in the market at prices
which represent a discount to the prevailing NAV per Ordinary Share of that class so as to enhance
the NAV per Ordinary Share for the remaining holders of Ordinary Shares of the same class. The
Company is authorised to make market purchases of up to 46,707,310 Ordinary Shares. The
Directors intend to seek annual renewal of this authority from Shareholders, once their existing
authority has expired or at each AGM. Whether the Company purchases any such Shares, and the
timing and the price paid on any such purchase, will be at the discretion of the Directors, subject to
compliance with the Act, the Listing Rules and the Disclosure Guidance and Transparency Rules.
If, in any rolling 3-month period, the Ordinary Shares have, on average, traded at a discount in
excess of 5 per cent. to the Net Asset Value per Ordinary Share (calculated as at such month end
by comparing the middle market quotation of the Ordinary Shares on the last London Stock
Exchange trading day of each month in the relevant period to the prevailing published Net Asset
Value per Ordinary Share (cum income, but exclusive of any dividend declared once the ex-dividend
date has passed) and averaging this comparative figure over the relevant period), the Company
intends to use 50 per cent. of net cashflows to repurchase Ordinary Shares, subject always to the
impact that such repurchase may have on the ability of the Company to meet its Target Total Return
(which includes the target dividend) or other economic factors that the Board consider it prudent to
take into account at the relevant time.


8.3 Continuation Votes
Shareholders will have the opportunity to vote on the continuation of the Company at the AGM of
the Company to be held in 2026, and every fifth AGM thereafter. If any such ordinary resolution is
not passed, the Directors shall draw up proposals for the voluntary liquidation, unitisation,
reorganisation or reconstruction of the Company for consideration by the Shareholders at a General
Meeting to be convened by the Directors for a date not more than 6 months after the date of the
meeting at which such ordinary resolution was not passed.

[rambutan2] 03/8/2023 01:15

Yes, slightly mixed news, but hey it's choppy out there. And still plenty to like...

[cc2014] 02/8/2023 14:11

There is also this:

As stated in the Annual Report, the Company decided to relocate two sites to seek improved operational performance. After further analysis, the relocation option proved not to be adequate, and the Company has decided to fully provide for the GBP4.5 million of capital previously invested.

So, we decided to move sites, spent a load of money on it and then decided it was a mistake and all the money has been wasted???


I love the "does not currently employ leverage"....

[speedsgh] 02/8/2023 13:44

Net Asset Value and Factsheet -

Financial & Operational Highlights

Interim Dividend

The Board of Directors of the Company announced an interim dividend of 1.38p per share in respect to the period from 1 April 2023 to 30 June 2023, in line with the dividend target for 2023.

Income from the portfolio has remained robust during the quarter and the dividend is 1.3x covered. As more projects become operational, the dividend coverage ratio is expected to strengthen further. The Company's operational assets also continue to benefit from over 90% of contracted revenues.

Leverage

Total leverage of the Company is 2.2% of NAV, which relates to the asset-level leverage on its US asset. The Company does not currently employ leverage at the fund level and continues to target a total NAV return of 10% net of the Company's costs and expenses.

30 June 2023 Net Asset Value (NAV)

The Company's NAV as at 30 June 2023 was 110.21p per share, compared to the NAV of 112.32p per share as at 31 March 2023 [continues]

Dividend Declaration -

[rambutan2] 25/5/2023 03:16

Noting that as yet, no debt at any level, and that only 56% of nav operational. So lots of earnings power yet to kick in:

[gbcol] 24/5/2023 11:18

“The NAV increased from 108.2p per share as at 31 December 2022 to 112.3p per share as at 31 March 2022, a 3.8% increase”

The share price performance has been disappointing - not unique in the current market conditions - but the NAV performance has been solid and it’s a decent enough dividend.

May have to wait until interest rates start to fall before we see share price nearer to or at a premium to NAV, but for those with a medium/long term view like myself I don’t think it’s a bad one to have in the portfolio.

[rambutan2] 29/3/2023 02:49

Onwards and upwards:

[speedsgh] 28/3/2023 08:35

Annual results for the year ended 31 December 2022 -

Company highlights

- Net Asset Value of £457.2m as at 31 December 2022, up from 323.9m as at 31 December 2021
- Net Asset Value ("NAV") per share of 108.2p as at 31 December 2022, up from 104.0p as at 31 December 2021 and a total return on a NAV basis in the year of 7.6%
- Profit before tax of £28.2m as at 31 December 2022, up from £20.4m as at 31 December 2021
- Dividend coverage of 1.4x as at 31 December 2022, up from 1.0x at 31 December 2021
- Aggregate dividends of 5.13p per share declared relating to the year ended 31 December 2022, exceeding the 5p target
- Target dividend of 5.52p per share for the year to December 2023, a 7.6% increase from the previous year
- Capital raised of £122m in July 2022 with proceeds substantially deployed or committed into the Company's Enhanced Pipeline of Assets
- Actual clean energy generated 35,117 MWh and actual tonnes of carbon avoided 14,349t

Bernard Bulkin, Chair of VH Global Sustainable Energy Opportunities plc, commented:
"This has been another very busy year for the fund against a backdrop of significant global economic challenges, in particular a growing energy crisis exacerbated by Russia's invasion of Ukraine, and a sharp increase in the cost of living that is severely affecting families and households. The current environment presents a very compelling rationale for us to continue investing in solutions that facilitate the energy transition, enable renewable energy technologies, improve energy security and affordability, while having a meaningful impact in the economies where we deploy capital.

"As with last year, the Company was able to go back to market in July 2022 to raise additional funds. This has helped to ensure that GSEO has been well-capitalised to deploy into its enhanced pipeline of assets, as it has continued to do since IPO, to work towards its strategic goals. I am delighted to welcome all the new shareholders to the register and would like to thank existing shareholders for their continued support."

Anthony Catachanas Chief Executive Officer Victory Hill Capital Partners LLP commented:
"This has been a year of continued progress for both Victory Hill and the VH GSEO fund. We have continued bringing value to shareholders through the expansion of further joint venture programmes with new developer/operators and uncovering less obvious and lesser-known sources of investment returns to deliver an increasingly compelling investment proposition, well-diversified by both technology and geography.

"I am also extremely pleased at the way that we have been able to grow and deepen the talent pool that we have at Victory Hill. Over the period, our investment team has doubled in human capital terms, which has increased our capacity to execute the investment strategy and monitor the Company's portfolio as it continues to grow. Our commitment to further growth and enhancement of Victory Hill's operation is already serving, and will continue to serve, the Company and its shareholders well."

[nexusltd] 10/3/2023 14:32

@rambutan. Thanks for the QuotedData interview heads up.

[rambutan2] 09/3/2023 21:41

Zoom in tomorrow morning:

QuotedData’s weekly news roundup show – Every Friday at 11am
On 10th March, James Carthew will be joined by Anthony Catachanas from VH Global Sustainable Energy Opportunities.

[rambutan2] 22/2/2023 17:03

GBCol, they say:
"The Company does not hedge the principal value of investments, but does hedge the short term distributions from investments from local currency to GBP and income from operational investments remains robust." Which is a sensible policy imho.

Here's the factsheet, with informative pie charts which illustrate that there should be plenty of both income and nav growth t/c from the current portfolio:

[gbcol] 22/2/2023 07:52

3.2p of that NAV reduction down to foreign currency. They state that they don’t hedge and that they are up 5.2% on it over the financial year but not sure myself if it’s a risk worth taking.

[speedsgh] 22/2/2023 07:32

~ NAV down 3.8% to 108.2p (30/9/22: 112.5p)
~ FY22 Q4 dividend increased to 1.38p (payable 31/3/23), giving FY22 full year dividend of 5.13p, exceeding original 5.00p target
~ FY23 dividend target of at least 5.52p (1.38p per qtr)

Net Asset Value as at 31 December 2022 -

Dividend declaration -

[rambutan2] 16/2/2023 17:10

Having watched since IPO, I've bought a small position. I think it offers something a bit different, with more upside than most of the renewables/infrastrucure. The management are very experienced and pretty tied to the success of GSEO. Currently unlevered. Available to buy at the IPO price but now invested.

A quarterly nav rns is due next week and results should follow next month.

[speedsgh] 04/11/2022 10:27

Net Asset Value as at 30 September 2022 -

VH Global Sustainable Energy Opportunities plc (the "Company" or "GSEO") announces that its unaudited net asset value ("NAV") as at 30 September 2022 was £475.3m, equivalent to a NAV per ordinary share of 112.5p. This represents a 0.5% reduction from 113.1p as at 30 June 2022...

Dividend declaration -

The Board of directors of VH Global Sustainable Energy Opportunities plc (the "Company") announces an interim dividend of 1.25p per Ordinary Share with respect to the period 1 July 2022 to 30 September 2022, as scheduled below:

Ex-Dividend date: 17 November 2022
Record date: 18 November 2022
Payment date: 16 December 2022

[markldn] 12/10/2022 11:10

Has GSEO been thrown out with the bath water? By assets, they are 35% geographically located in the UK with the remainder in US, Brazil and Australia. They focus on more frontier technologies such as battery storage with some 17-25% exposure to solar PV (the caps impact "established" green power such as onshore wind and solar). Trading at -12.43% discount to NAV vs 12m average of 2.74% premium. It has fallen by the same proportion has JLEN, UKW and BSIF (to name a few), which are much more UK based with "established" energy plays.

Any critiques of the above analysis? I'll continue to add to all of the my holdings regardless.

[bathcoup] 13/9/2022 16:41

"the Company is currently 97% committed or deployed." - another raise on the cards?

[gbcol] 13/9/2022 07:50

Solid results. Still trading at a discount to NAV. Not sure why it has fallen back so sharply from recent, albeit short-lived rise to 120p. That was possibly a bit toppy but current share price seems decent value to me with current 5p dividend and a progressive divi policy.


“FINANCIAL PERFORMANCE

The Company's NAV per share was 113.1p at 30 June 2022, an increase of 8.8% from the NAV per share at 31 December 2021 of 104.0p . GSEO's NAV total return from IPO to 30 June 2022 was 18.1% , including dividends paid.

GSEO's profit before tax for the six-month period to 30 June 2022 was GBP32.4m and earnings per share for the period were 10.4p”

[gbcol] 05/8/2022 08:26

NAV as at 30 June 2022 has increased to 113.1p - a 5.1% increase from March 2022.

Plus 1.25p divi announced for that qtr, payable 16 September.

Personally I’m happy enough with how this is ticking along although I’d obviously be happier if the share price can push on to a premium to NAV.

[gbcol] 29/6/2022 08:28

Raised £122m which I think is a decent result considering current market conditions. I upped my holding by about a third.

[speedsgh] 13/6/2022 09:38

Share Issuance Programme prospectus now available on company website...

[speedsgh] 09/6/2022 06:42

New placing/open offer at 110p targeting £150m...



VH Global Sustainable Energy Opportunities plc, the investment company advised by Victory Hill Capital Advisors LLP (the "Investment Adviser") focused on energy infrastructure that is essential for the global transition towards net zero, today announces its intention to raise target gross issue proceeds of £150 million through an Initial Placing, Initial Open Offer, Initial Offer for Subscription and Initial Intermediaries Offer (together, the "Initial Issue") at an issue price (the "Issue Price") of 110 pence per new ordinary share ("New Ordinary Share").

The Issue Price represents a premium of 3.4 per cent. to the NAV per Ordinary Share as at 31 March 2022 adjusted for the interim dividend of 1.25 pence per Ordinary Share declared on 5 May 2022 and a discount of 3.5 per cent. to the closing Ordinary Share price on 8 June 2022 .

Since IPO, the Company has assembled an attractive portfolio of 24 assets, comprising investments which are diversified across a variety of technologies in four jurisdictions (Australia, Brazil, the UK and the USA). The Company's portfolio assets have predominantly long-term contracted inflation-linked cash flows which are based on availability or capacity.

The Investment Adviser has identified a number of potential Sustainable Energy Infrastructure Investments (as defined below) and has (i) secured for the Company the exclusive right to negotiate with the owner to acquire, (ii) issued non-binding offers to acquire, and/or (iii) is at an advanced stage of negotiation with the respective developers in respect of, assets with a total potential value of approximately £280 million (the "Enhanced Pipeline").

The Company targets a Net Asset Value total return of 10 per cent. per annum which includes a progressive dividend policy targeting a cash dividend of 5p per Ordinary Share for the financial year ending 31 December 2022*.

The Company has delivered a Net Asset Value total return of 8.1 per cent. (annualised) as at 7 June 2022 (the "Latest Practicable Date"), including payment of its targeted dividends as set out at IPO.

[continues]