Riverstone Energy reports another strong year

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Riverstone Energy (RSE) has released its annual results for the 12 month period ending 31 December 2023.

  • Over the 12 month period RSE reported a NAV return of 9.9%, with a total NAV of £529m, equal to a NAV per share of £12.53. It also reported a share price return of 18.1%.
  • 8.7m shares were repurchased, at an average price of £5.75. RSE currently trades on a 27.6% discount.
  • Over 2023 RSE invested an aggregate amount of $22.3m in energy transition and decarbonisation investments. This consisted of investments into Infinitum ($10m), FreeWire ($4m), T-REX Group ($3.8m) Enviva ($3.5m) and Our Next Energy ($1m). RSE had 14 active investments as of its financial year end: two exploration and production investments, eleven decarbonisation investments and one power investment.
  • There were $272m in realisations made over the year over six transactions, the largest being $175.6m from the sale of Hammerhead Energy to Crescent Point Energy.
  • 2023 saw the previous chair, Richard Hayden, step down, with RSE now chaired by Richard Horlick.
  • RSE announced on 8 February that it proposes to return $200m (equal to c.£158m) of its excess capital to shareholders by means of a tender offer at a price of £10.50 per ordinary share. RSE had uninvested funds of $285.6m as of its financial year end.

RSE investment manager commented:

“The themes of global macro-economic uncertainty, geopolitical instability and tension are likely to remain. On top of this, elections in 64 countries for around half of the world’s total population this year will add to the sense of uncertainty and the potential for drama. A change in US administration could see a shift in the rhetoric around the environmental and energy debate but it will not impact the science or need for continued investment to address climate change, and to upgrade, modernise and improve the world’s energy infrastructure.

“A stable macro-economic outlook, increasing geopolitical tensions and further disruption to global supply routes could provide a favourable environment for energy prices. A reduction in interest rates is likely to be reflected positively in the valuations of small-cap, high growth companies which could be supportive for our renewables portfolio. The timing, scale and speed of any reduction in interest rates is still unknown but inflationary pressures across the world have been reduced, providing optimism that central banks will be able to cut rates when conditions allow.”

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