Gore Street Energy says dividend on track as portfolio grows


Gore Street Energy Storage Fund PLC‘s (LON:GSF) said the capacity of its portfolio of battery assets had risen to 239Mw by the end of its latest half-year.

Alex O’Cinneide, the fund’s manager, noted that the capacity has increased further since to 320Mw, of which 110 Mw was based at operational sites.

The group also recently completed a GBP60mln fundraise to help fund a pipeline of developments that will potentially take capacity up to 1.3Gw out of which 80Mw is expected to executed shortly, said O’Cinneide.

Over the six months to end September 2020, Gore Street’s net asset value (NAV) per share rose to 97.3p (2019: 94.6p) including an earlier GBP23.7mln fundraise.

Net income was GBP2.8mln (March 31m 2020: GBP4.7mln) and the interim dividend for the period was 2p, which was in line with its commitment to pay 7p a year said the fund.

Broker Liberum added that with a GBP24m capital raise during the six month period and a further GBP60m raised earlier this month the company is well-positioned to expand the portfolio further, with the manager reporting a potential pipeline of 1.3GW of assets across the UK, Ireland, Europe and the US.

“Recent acquisitions and the commissioning of 130MW of construction assets (expected in 2021) will support the 7.0p dividend target, which represents a sector high 6.8% dividend yield.”

Separately, Gore Street added that it has also amended its fee arrangements with manager Gore Street Capital, with additional amounts agreed for identifying sites, construction, management and administration costs.

The fund said these should not amount to more than GBP650,000 a year and will be accounted for within the vehicles that run the respective site.

In the half-year report, Pat Cox, Gore Street’s chairman, said: “The board believes after carefully reviewing the proposals that there is a clear and compelling commercial and operational rationale for this decision.

“These changes will provide the company with a complete suite of beneficial services to further enhance the performance of our growing portfolio of assets, a central feature of the company’s focus.”

Shares rose 0.5% to 104p.

— adds share price, broker comment —


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