CEO of Gore Street Capital, the investment manager to the Company, Alex O’Cinneide, commented:
“I’m proud to present a strong set of operational results. The performance highlights ongoing year-on-year growth across the key industry metrics and revenue stability through the clear success of the Company’s strategy. Despite the turbulence seen in the sector, the Company achieved continued growth while demonstrating leadership and resilience.
“Across the sector, it is increasingly apparent that the range of strategies employed by asset owners are yielding increasingly different financial outcomes, with Gore Street producing revenues c.3x of our peers and lowering the volatility of those revenues by 50%. In the GB market, participants largely act as price takers, resulting in similar revenue generation across asset owners. However, it is clear that the impact of capital allocation strategies, whether based on gearing levels, geography concentrations or capital expenditure, is a key component of a company’s long-term viability. Within the sector, we have seen reports of a resurgence in GB revenue based on annualising a very limited data set of revenue over a 15-day period in April. It should be noted that GSF’s estimated average revenue of £15.1 / MW / hr (or £133k / MW / year) for the past 12 months is almost double that of what peers considered as an annualised highlight based on 15 days of trading in GB in April (equating to c.£70k / MW / year). GSF’s consistent outperformance is a testament to our prudent approach to capital allocation and operational excellence. We are the first asset owner to stack revenues in the Irish and German markets, and this control of the optimisation of our portfolio, we believe will continue to produce superior returns.
“The case for energy storage remains strong around the globe, with rising levels of renewable penetration creating an increased system need for flexibility assets. We are also seeing policy drivers emerge to promote the use of assets like those in the Company’s portfolio. The US assets continue to benefit from Investment Tax Credits under the Inflation Reduction Act while new energy storage mandates and potentially even support schemes are expected under new legislation agreed by the European Parliament.
“The combination of positive policy environments, falling technology costs and financial expertise held in-house at the Investment Manager ensures the Company remains well-positioned to deliver sustainable value to our shareholders.”
Dividend Cover:
Due to the Company’s diversified portfolio which has been delivering a consistent average revenue per MW, and the portfolio’s ongoing increase in operational capacity, the Company’s dividend cover has continued to trend upward.
As previously highlighted, the Company reaffirms its dividend target of 7% of NAV for the reported period.
During the Period, the Company achieved an estimated operational dividend cover of 0.78x and an estimated portfolio-level dividend cover of 0.56x. This dividend cover was achieved from an average operational capacity of 311.5MW, achieving an estimated average per MW/hr revenue of £15.1.
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