Gresham House Energy Storage Fund (GRID) Trading Update summary

Net asset value and financial performance

• NAV per share declined to 109.16p as of 30 June 2024, down 19.91p since year-end, mainly due to more conservative third-party revenue forecasts.

• Operational portfolio generated £17.9mn in net revenues and £10.4mn EBITDA in H1 2024, both lower year-on-year due to a weak Q1.

• Early Q3 net revenues are about 25% higher than H1 2024 averages, reaching the highest levels of the year.

• Debt facility was reduced from £335mn to £195mn, with £120mn drawn at period end, enhancing operational flexibility.

• Cash on hand stood at £26.8mn as of 30 June 2024.

Portfolio developments and operations

• Operational capacity increased to 790MW/1031MWh, surpassing 1GWh for the first time after recent extensions.

• Four projects (105MW) have started tolling agreements with Octopus Energy, fixing revenues above recent merchant levels for two years.

• Construction and site augmentations are progressing, with all projects under the tolling agreement expected to be onboarded by end-2024.

• The total portfolio (operational and under construction) is 1,067MW/1,485MWh, with a further pipeline of 235MW/470MWh.

• Approximately two-thirds of operational portfolio revenues are expected to be contracted in 2025 and most of 2026.

Strategic outlook and future plans

• A three-year plan (2025–2027) will be announced in November 2024, focusing on maximizing capacity, revenues, and cashflow while reducing earnings volatility.

• 2025 operational portfolio revenues could reach around £65mn with EBITDA of £45mn, supporting potential dividend resumption.

• Key focus areas include further augmentations, new pipeline opportunities, efficient capital management, and alternative revenue sources.

• Alternative valuation metrics (P/E, EV/EBITDA) will be introduced to provide better investor insight.

• The company targets an unlevered NAV total return of 8% p.a. and levered NAV total return of 15% p.a.