Gresham House Energy Storage Fund (GRID) H1 2022 earnings summary

Executive summary

• NAV rose 53.5% to £785.4mn and NAV/share increased 24.2% to 145.11p; H1 NAV total return was 27.2%.

• Underlying operational revenue and EBITDA exceeded budget, supported by elevated Frequency Response pricing and strong trading conditions.

• Priorities include commissioning projects on schedule, growing the GB and overseas pipeline, and securing additional debt capacity.

Financial highlights

• Underlying operational portfolio revenue increased 20.6% to £30.1mn from £24.9mn in H1 2021; EBITDA was £22.7mn versus £22.4mn.

• NAV/share rose from 116.86p at FY21 to 145.11p at 30 June 2022; share price total return was 23.3% in H1 versus -4.6% for the FTSE All-Share.

• NAV total return was 27.2%; share price total return since IPO was 86.9% versus 15.82% for the FTSE All-Share.

• The 2022 dividend target of 7.0p was reaffirmed; full operational dividend cover reached 3.5p in H1.

Outlook and guidance

• Operational capacity was expected to reach 690MW by year-end 2022, with further commissioning anticipated to increase operational dividend cover.

• Further DCF revaluations were expected to support NAV growth in Q4 2022 and 2023; 487MW of project capacity had been revalued on a DCF basis at the WADR.

• Timely project delivery and mitigation of inflation and FOREX effects on new projects are key priorities; additional GB and overseas pipeline announcements were anticipated.

• Closing a £200mn accordion debt facility was a key Q4 2022 milestone; completion was expected in Q4.