VH Global Energy Infrastructure (ENRG) H2 2024 earnings summary

Executive summary

• NAV per share declined 11.4% to 103.21p as at 31 Dec 2024, mainly due to adverse FX movements and higher discount rates.

• Total NAV fell to £408.5m from £483.8m, with a 36.1% share price discount to NAV at year-end.

• Dividend per share increased to 5.71p, exceeding the 2024 target, with a yield of 8.7% at period-end.

• Portfolio is 69% operational, with 34 assets across 6 technologies and 7 geographies; expected to be nearly fully operational by end of 2025.

• £20m share buyback programme completed to address persistent share price discount.

Financial highlights

• NAV per share: 103.21p (down from 116.46p); NAV: £408.5m (down from £483.8m).

• Dividend per share: 5.71p (2023: 5.56p); dividend coverage: 0.96x (currency adjusted: 1.24x).

• Dividend yield: 8.7% (2023: 7.2%).

• Total NAV return: -4.3% (2023: 14.5%).

• Ongoing charges ratio: 1.5% (2023: 1.4%).

• Leverage: 6.6% of NAV (2023: 1.9%).

• Largest investment programme (US terminal storage): 29.3% of NAV.

Outlook and guidance

• Target dividend for FY2025 is 5.80p per share, a 2.1% increase over 2024.

• Board to announce steps in 2025 to address share price discount to NAV.

• Portfolio expected to be almost fully operational by end of 2025, strengthening dividend coverage.