Triple Point Energy Transition’s first results after approving wind-down

Triple Point Energy Transition (TENT) has released its annual results for the 12 months ending 31 March 2024, following the decision on 22 March 2024 to implement an orderly wind-down of the trust, given it was trading at a persistent discount to NAV and was unable to grow the trust further.

• Over the 12 months TENT’s NAV declined 12.8% to 86.66p per share, down from the 99.44p it reported for March 2022. This represented a total NAV loss of £7.3m and a NAV total return of -7.3%, compared to the £8.8 profit and 9.2% return it made over its previous financial year.
• The negative returns were primarily driven by fair value reductions in the Hydroelectric Portfolio as a result of increased discount rates and an impairment of the CHP portfolio loans due to deterioration in the credit quality of the heat offtaker.
• With respect to the managed wind-down, TENT has realised £61.6m through asset disposals, representing 52.2% of Gross Asset Value (current gross assets are £87.5m). The disposals have been made at an average 92% of the value of those investments.
• The remaining assets yet to be sold are:
  • Hydroelectric Portfolio: formal sales process commenced in May 2024, with multiple non-binding offers received.
  • Remaining LED receivables finance facility: actively exploring disposal options
• After disposing of its BESS portfolio in April 2024, TENT’s revolving credit facility was repaid and cancelled.
• TENT intends to make an interim return of capital to shareholders in the current financial year, after the disposal of the Hydroelectric Portfolio and before entering voluntary liquidation.
• TENT has declared a total dividend of 5.50p for its 2023 financial year, covered 1.04x by operating cashflow. The board has declared a Q1 dividend of 1.375p. Future dividends will be evaluated quarterly depending on the progress of the asset sales and the ongoing market conditions.

John Roberts, chair, commented:

“FY24 was another year of robust underlying performance from TENT’s diversified portfolio of assets as illustrated by the 1.04x cash dividend cover. Looking ahead, however, our primary goal is to continue the strong progress already made in completing our orderly wind-down in a timely fashion and with diligence. We aim to optimise the value realised from our remaining assets, with the objective of concluding the disposals efficiently and responsibly, and returning value to shareholders.

“On behalf of the Board, I would like to express our appreciation for the continued support of our shareholders through this period of transition. We have taken significant steps to ensure the strategic decisions made during this process are in the best long-term interests of all our stakeholders. As we continue the orderly wind-down, we are committed to clear and consistent communication, ensuring that you remain informed of our progress.”