Gresham House Energy Storage Fund (GRID) H2 2024 earnings summary

Executive summary

• 2024 saw a challenging first half with weak revenues and a dividend suspension, followed by a strong recovery in H2 and continued momentum into Q1 2025.

• Net asset value (NAV) per share declined by about 15%, driven by lower revenue forecasts and a switch to a more conservative forecast provider.

• Operational capacity grew to 845 MW by year-end, with further expansion to over 1.5 GWh in early 2025.

• Approximately half of revenues are now contracted for the next two years, de-risking the business.

Financial highlights

• Year-over-year revenue grew 20%, with strong H2 performance offsetting a weak H1.

• EBITDA also grew, though at a slower pace than revenue due to operational impacts from augmentations.

• NAV per share fell 15% year-over-year, primarily due to lower revenue forecasts and a change in forecast provider.

• Steady-state EBITDA margin for new two-hour projects is expected to be upwards of 75%.

Outlook and guidance

• The three-year plan targets augmenting the existing portfolio to at least two-hour duration, with potential for further upgrades.

• Five new projects totaling 694 MW are planned, all initially at two-hour duration.

• Ambition to reach GBP 150 million EBITDA run rate by end of 2027.

• Dividend distributions are expected to resume later in 2025, subject to successful refinancing.