Riverstone Credit Opportunities Income (RCOI) has announced its full year results for the year end 31 December 2024. On 22 May 2024, the company entered into a managed wind-down. During the the year, the company’s NAV decreased by 13%. This was principally attributable to the reduction in the company’s value for Harland & Wolff. After the period end, the four shipyards owned by Harland & Wolff were successfully sold, resulting in what will amount to a material return of capital to the company in addition to residual ownership in the Islandmagee gas storage asset.
There were two full realisations executed during the period, Epic Propane and Blackbuck Resources. These investments were realised at net IRRs of 12.8% and 13.2% respectively. Dividend distribution of 4.72 cents per share (2023: 8.50 cents per share) were approved with respect to the year ended 31 December 2024. In August the company announced its first return of capital equating to circa 25% of the total issued share capital.
Operationally, the manager noted that it continues to be pleased with the financial performance of the company’s portfolio as well as the beneficial impact its loans are having on the journey towards greater environmental sustainability in global energy infrastructure. During 2024, apart from the unrealised markdown of the position in Harland & Wolff, the company’s performance remained stable from 2023, posting consistent earnings for the period. After the period end, the company has successfully delivered a sale to realise a substantial proportion of the value of the Harland & Wolff position and the portfolio remains well positioned in the current environment. The company has delivered a NAV total return of 32.5% to investors since inception in May 2019 and 38.1 cents of income.
Discussing the results and the outlook for the trust, chair Reuben Jeffery, III commented:
“The company has adopted a wind-down investment policy, and the investment manager is actively seeking exit opportunities to realise the loans comprising the company’s portfolio and return the resulting proceeds to shareholders. The investment manager may dispose of loans in the secondary market where it considers this to be in the best interests of the company.
“The precise mechanism for the return of cash to holders of ordinary shares in a managed wind-down is at the board’s discretion but may include (subject to compliance with all applicable legal requirements) a combination of capital distributions, tender offers, mandatory share redemptions, and share repurchases. The return of proceeds to shareholders may require further shareholder approvals, depending on the methods proposed.
“Although the NAV per share performance over the period is disappointing, we are pleased to note the successful sale of Harland & Wolff after the end of the period under review and the two successful realisations during the course of 2024. We are also pleased that in August, the company carried out its first return of capital, equating to approximately 25% of the total issued share capital—a strong start to delivering on our managed wind-down objectives. We look forward to providing further updates on the progress of the company’s managed wind-down in due course.”
RCOI: Riverstone Credit Opportunities Income makes progress on managed wind down
