In QuotedData’s morning briefing 13 December 2023:
- Triple Point Energy Transition (TENT) announced its interim results for the six months ended 30 September. The company’s NAV fell 4.3% while shares fell 22% as the discount widened to over 40% at last close. In light of the stubborn discount the company has announced that an orderly realisation of assets, and return of associated realised capital, is the most viable option to maximise shareholder value in the short to medium term. You can read more about this here.
- Octopus Renewables Infrastructure Trust (ORIT) announced it has completed the sale of the Krzecin and Kuslin onshore wind farms in Poland to an affiliate of the Polish-based listed multi-energy company, ORLEN. ORIT will receive net proceeds from the transaction of approximately £92 million, at the top end of the company’s expectations upon entering into the sale agreement in October 2023. This represents a 21% premium over the holding value of the Krzecin and Kuslin wind farms of £76 million as at 30 September 2023, and a positive impact on NAV of approximately +2.8 pence per ordinary share. Completion of the transaction will realise an IRR of around 30% over the lifetime of ORIT’s investment. The net proceeds will predominantly be used to repay ORIT’s short-term debt facilities.
- Shires Income (SHRS) announced its annual report for the six months to 30 September. NAV total return was 0.9%, trailing the benchmark total return of 1.4%. Shares fell 3.1%. The discount sat at 9% at the last close. The company did see an increase of its dividend by 7% for a yield of 6.1%. This marks the first result since SHRS combination with abrdn Smaller Companies Income. Commenting on the results, the chairman noted: “UK equities look good value, trading at a material discount to other developed markets which is not justified by the fundamentals of earnings and dividends. Economic growth has been similar to other large economies and while inflation has been higher this is now falling. The yield available on UK equities is ahead of other markets and delivers an attractive rate of return. The preference shares held in the portfolio also offer a high yield and the potential decline in bond yields should provide a tailwind to their valuation. However, the Investment Manager remains cautious on equities globally, as it believes on a medium-term view that markets are pricing in an overly benign outlook for macro-economic outcomes and interest rates.”
- Asia Energy Impact (AEIP) announced that its end September 2023 NAV was 50.4 cents, down 47.5% over the previous 12 months. This was driven by: (i) the negative net present value associated with completing the 200 MW DC solar construction project in Rewa Ultra Mega Solar Park in India; (ii) a reduction in the Philippines wholesale electricity spot market price forecasts; (iii) updated generation, operating cost and tax assumptions; (iv) methodology and modelling updates; (v) removal of carbon credits; and (vi) higher discount rates across the portfolio. [This is shockingly bad and hopefully draws a line under the events of the past year. The big question now is whether investors vote against liquidation.]
- Workspace Group (WKP) has entered into a Corporate Power Purchase Agreement (CPPA) with Statkraft, Europe’s largest generator of renewable energy, to supply around two-thirds of the group’s expected electricity demand for the next 10 years with effect from 1 February 2024. Workspace will take all the electricity generated by a newly constructed solar plant in Devon. This agreement marks the first clean energy CPPA made by a London office provider to date, sourcing electricity directly from a renewable energy generator.