Triple Point Energy Transition (TENT) has released its annual report for the financial year ending 31 March 2023.
- Over the 12 month period TENT reported a NAV total return of 9.2%.
- TENT paid a dividend of 5.5 pence per share, in line with its previous pay out, and was fully covered by its revenues. This was equal to a 9% yield as of 31 March 2023.
- TENT’s capital is now fully committed. However it does have £44m in uninvested capital waiting to be committed to an outstanding Battery Energy Storage Systems project.
- The Battery project will be part funded by TENT’s revolving credit facility, and will be the first instance the facility has been utilised.
- TENT’s managers highlighted the excellent portfolio performance, whereby all asset classes were positive contributors. They note that the UK energy levy had no effect on performance.
- The team also highlight several new types of investment within the portfolio, noteworthy for their contribution to improved diversification. Specifically TENT’s investments in the aforementioned Battery Energy Storage Systems, but also LED lighting, and an investment in Innova Renewables, a renewables development company.
TENT’s investment managers commented: “The past year has been significant for the company, marked by fully committing all of the group’s remaining capital, broadening of the company’s investment mandate with the change in company name to reflect this, as well as the migration of the company’s shares to trading on the Premium Segment of the Main Market of the London Stock Exchange. These events reflect our strategic vision and ambition to drive sustainable growth and positive impacts in today’s challenging energy market.
“As we continue to expand our portfolio, during the financial year we have ventured into new asset classes and capital structures, for example receivables financing of LED lighting and solar and BESS project development through a debt structure. These investments not only underscore our commitment to advancing innovative technologies but also allow us to leverage the stability of debt financing to support projects that drive energy transition and sustainability, whilst generating ongoing contractual returns for the group at an attractive risk adjusted rate.
“The company will strengthen its focus on distributed energy generation, specifically on renewable and lower-carbon assets. Emerging technologies such as green hydrogen and carbon capture are recognised for their potential, and the company will actively assess the viability of investing in these areas.
“In a market environment characterised by falling power prices, the company’s diversified mandate offers a significant advantage. This approach provides insulation from single-technology risks and enables income generation from a wide range of sources. The company is confident that its strategic focus will continue to drive shareholder value and contribute positively to the global transition to a low-carbon economy.”
[We’ll be talking to the manager on this week’s weekly show]