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

Executive summary

• 2024 saw a challenging first half with weak revenues, followed by a significant recovery in H2, resulting in 20% year-over-year revenue growth and continued momentum into Q1 2025.

• NAV per share declined by about 15%, primarily due to more conservative revenue forecasts and a change in forecast provider.

• Operational capacity grew to 845 MW by year-end, with an additional 100 MW added in early 2025, and plans to reach 1,072 MW and 1.7 GWh soon.

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

Financial highlights

• Year-over-year revenue growth of 20% driven by recovering rates and increased installed capacity.

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

• NAV per share fell 15% due to lower revenue forecasts and a shift to a more conservative 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 augmentations to increase portfolio duration to at least two hours, 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 be reinstated later in 2025, subject to successful refinancing.

• 30%-50% NAV growth anticipated over the next few years, driven by augmentations and new pipeline.