VH Global Sustainable Energy Opportunities reported its annual results for the year ended 31 December 2022. Shares fell -5.61% while NAV increased by 7.6%. The company does not provide a benchmark in its annual report, however, performance was roughly in line with the S&P Global Clean Energy Index. The discount remained relatively steady throughout the second half of the year, although it has begun to narrow slightly over the last few months, now sitting at just over 5%. The company was also able to offer a solid increase in its dividend payment, growing 7.6% from the year prior.
Commenting on the results, chair, Bernard Bulkin noted;
“I am pleased to present the second Annual Report for VH Global Sustainable Energy Opportunities plc (the “Company” or “GSEO”) for the year ended 31 December 2022.
“This year under review has continued to witness global economic challenges, 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 attractive opportunity for the Company 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 it deploys capital.
“The global energy transition is a critical and ongoing process that aims to shift the world’s energy systems away from fossil fuels and towards cleaner, renewable sources. This transition is driven by a need to combat climate change, reduce air pollution, and ensure energy security.
“The use of renewable energy sources such as solar, wind, and hydropower is central to the energy transition. These sources are abundant, sustainable, and produce little or no greenhouse gas emissions. They also offer the potential for significant cost reductions over time, making them increasingly competitive with fossil fuels. However, the transition also involves the use of other clean energy technologies such as natural gas with carbon capture and re use, which can provide reliable and low-carbon energy.
“The energy transition is also about more than just generating energy. It involves a transformation of the entire energy system, including the way energy is distributed, stored, and consumed. This includes the integration of renewable energy into the grid, the development of energy storage solutions, and the implementation of energy efficiency measures.
“A successful capital raise in July 2022 helped to ensure that GSEO had funds available to deploy into its enhanced pipeline of assets, as it has continued to do since IPO, to work towards its strategic goals. We were also delighted to welcome new shareholders to the register on this occasion.
“GSEO represents the first publicly listed investment trust in the UK with a global focus on the energy transition. The Company’s ability to invest in a range of technologies, across a broad geographical scope mitigates the risk of weather patterns and prevents reliance on any single regulatory regime or currency. We believe these characteristics help us with the objective to offer shareholders attractive risk-adjusted returns combined with high impact, through exposure to the global energy transition.”
GSEO : VH Global Sustainable Energy Opportunities off to positive start