VH Global Energy Infrastructure has published results for 2024. The NAV fell by 11.4% to 103.21p. The dividend for the year was up 2.7% to 5.71p and this was covered by cash flow 0.96x. The target for 2025 is 5.80p, up 2.1%. The statement avoids any direct mention of share prices. For reference, it fell from 77.2p to 65.8p, a drop of 14.8%.

At the end of December 2024, the discount was 36.1%. A £10m share buyback programme, initiated in 2023, was increased by £10m in February 2024. By Q4 2024, the full buyback budget had been utilised. Gearing is relatively low, the trust does not need to sell assets to repay debt.

The board has engaged with major shareholders to better understand their perspectives. As anticipated, investor sentiment has been mixed – while some shareholders continue to support the company’s existing strategy, others have raised concerns about the challenges facing the broader sector and expressed a preference for alternative methods of returning capital to shareholders.

As a result of these discussions, the board, in collaboration with the manager and the company’s broker, is carefully evaluating strategic alternatives to reduce the discount and enhance shareholder value.

The board is committed to exploring all options and will keep shareholders informed as these discussions progress. The next continuation vote is in May 2026.

[The discount has widened further since the period end and, as of last night, stood at 45.4%. Clearly shareholders will be frustrated and more dramatic action than a £20m buyback is needed. We are expecting to see attempts at consolidation within the sector. However, there will also be pressure for more substantive returns of capital.]

ENRG : VH Global Energy Infrastructure kicks off strategic review