TIDMGSF
RNS Number : 4024R
Gore Street Energy Storage Fund PLC
08 March 2021
8 March 2021
Gore Street Energy Storage Fund plc
(the "Company" or "Gore Street")
Strong quarterly Valuation Uplift of 2.36%
Dividend Confirmation, Portfolio Update and intention of Equity
Raise
Gore Street, London's first energy storage fund supporting the
transition to low carbon power, is pleased to announce that strong
operational performance has led to further significant growth in
the Company's Net Asset Value ("NAV").
December NAV Update
As at 31 December 2020, the estimated unaudited NAV increased to
99.6 pence per share, representing an uplift of 2.3 pence per share
(+2.36%) over the previous quarter. During the quarter, the Company
also paid a dividend of 2.0 pence per share.
The increase in the latest quarterly NAV in respect of the
period from 30 September 2020 to 31 December 2020, is attributable
to both the strong performance of the Company's GB assets and the
increasing participation of the Company's assets in the UK's new
Dynamic Containment service introduced by the National Grid in
September 2020.
As previously disclosed on the 3 March, the Company expects to
have over 90MW portfolio of operational assets benefiting from
Dynamic Containment from April 2021. This new revenue stream is
expected to lead to a strong uplift in anticipated revenue [1]
.
Dividend Declaration
The Board of Directors (the "Board") of Gore Street is today
pleased to declare an interim dividend of 2.0 pence per share for
the period 1 October 2020 to 31 December 2020. The dividend will be
paid on or around 9 April 2021 to shareholders on the register on
18 March 2021.
Since the last audited NAV as at 31 March 2020, the Company's
NAV appreciated from 94.6 pence per share to 99.6 pence per share,
an increase of 5.0 pence per share or 5.29%. During the last twelve
months of wider equity market uncertainty, the Company has
announced 7 pence per share in dividends as targeted. Total NAV
return, including the 7.0 pence paid in dividends, was 10.9%.
Post-period Portfolio Update
Post period end, the Company has made further progress in the
commissioning of the Company's assets located in Northern Ireland.
The two 50MW assets, the largest on the Northern Irish grid, are in
the final stages of construction and testing, which remains on
schedule and on budget. The assets expect to start receiving
attractive DS3 service revenue from 1 April.
Additionally, after the fund's valuation date, Gore Street
secured the grid connection rights necessary to increase the
capacity of the Porterstown Republic of Ireland site from 30MW to
90MW. This increase in the size of the Company's portfolio is not
included in the December NAV update announced today.
Lastly, the Company has secured a UK Capacity Market contract
for three of the company's assets representing 59.5MW for the 12
months starting October 2021. The contract rate is
GBP45,000/MW/year which is significantly higher than the
GBP7,200/MW/year used in our NAV calculations. This represents
GBP566,000 of additional contracted income from the original budget
for the period from October 2021 and September 2022.
Intention of Equity Raise
Proceeds of the December 2020 placing have been fully allocated
to high quality projects selected by the Investment Adviser. The
Company and its Investment Adviser continues to have a significant
pipeline of new attractive projects and is considering a potential
equity raise as part of its existing placing programme, which it
intends to use as and when appropriate.
Alex O'Cinneide, CEO of Gore Street Capital, the Company's
investment adviser commented:
"In very difficult circumstances, we have generated significant
NAV growth for shareholders over 2020 including this latest
quarterly uplift. As investment in renewable energy infrastructure
grows, so does the need for energy storage assets which play a
major role in balancing intermittent generation from renewable
technologies, performing an essential service to the grid.
Additionally, Gore Street Energy Storage Fund now has a
lucrative new revenue stream, Dynamic Containment, contributing to
our portfolio. This highlights the benefits of an attractive range
of contracts available to the specialist energy storage asset
operator where shareholders can benefit from an increasingly
diverse set of revenue streams, reflecting the growing unmet need
for our services.
We are also delighted to announce the forthcoming commissioning
of the Company's assets in Northern Ireland, expected to provide
DS3 services from 1 April. The construction of these assets is
progressing towards 1 April commercial operation despite the
challenges of Covid-19. The Company has also received a grid
connection offer at Porterstown to increase capacity from 30MW to
90MW, a further example of the Company's efficient management of
its development phase assets that can add further value
creation.
Gore Street remains focused on growing and diversifying our
portfolio of energy storage assets through active asset management.
We continue to see a number of attractive near-term acquisition
opportunities from our extensive pipeline. We look forward updating
the market on the progress of these in due course."
The Legal Entity Identifier of the Company is
213800GPUNVGG81G4O21.
For further information:
Gore Street Capital Limited
Alex O'Cinneide / Paula Travesso Tel: +44 (0) 20 3826 0290
Shore Capital (Joint Broker)
Anita Ghanekar / Hugo Masefield (Corporate Advisory) Tel: +44 (0) 20 7601 6128
Henry Willcocks / Fiona Conroy (Corporate Broking)
J. P. Morgan Cazenove (Joint Broker)
William Simmonds / Jérémie Birnbaum Tel: +44 (0) 20 7742
(Corporate Finance) 4000
Buchanan (Media enquiries)
Charles Ryland / Henry Wilson / George Beale Tel: +44 (0) 20 7466 5000
Email: Gorestreet@buchanan.uk.com
JTC (UK) Limited, Company Secretary Tel: +44 (0) 20 7409 0181
Notes to Editors
About Gore Street Energy Storage Fund plc
Gore Street is London's first listed energy storage fund and
seeks to provide Shareholders with a significant opportunity to
invest in a diversified portfolio of utility scale energy storage
projects. In addition to growth through exploiting its considerable
pipeline, the Company aims to deliver consistent and robust
dividend yield as income distributions to its Shareholders.
The Company targets an annual dividend of 7.0% of NAV per
Ordinary Share in each financial year, subject to a minimum target
of 7.0 pence per Ordinary Share. Dividends are paid quarterly.
Disclaimer
This announcement has been issued by, and is the sole
responsibility of, Gore Street Energy Storage Fund plc (the
"Company").
This announcement is for information purposes only and is not
intended to and does not constitute or form part of any offer or
invitation to purchase or subscribe for, or any solicitation to
purchase or subscribe for shares in any jurisdiction in which such
an offer or solicitation is unlawful.
The information and opinions contained in this announcement are
provided as at the date of the announcement and are subject to
change without notice and no representation or warranty, express or
implied, is or will be made in relation to the accuracy or
completeness of the information contained herein.
The information in this announcement may include forward-looking
statements, which are based on the current expectations, intentions
and projections about future events and trends or other matters
that are not historical facts and in certain cases can be
identified by the use of terms such as "may", "will", "should",
"could", "expect", "anticipate", "project", "estimate", "intend",
"continue", "target", "believe" (or the negatives thereof) or other
variations thereof or comparable terminology. These forward-looking
statements, as well as those included in any related materials, are
not guarantees of future performance and are subject to known and
unknown risks, uncertainties, assumptions about the Company and
other factors, including, among other things, the development of
its business, trends in its industry, and future capital
expenditures and acquisitions. In light of these risks,
uncertainties and assumptions, the events in the forward-looking
statements may not occur and actual results may differ materially
from those expressed or implied by such forward looking statements.
Given these risks and uncertainties, prospective investors are
cautioned not to place undue reliance on forward-looking
statements.
[1] There can be no guarantee that the current pricing trends will continue.
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END
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