Gore Street Energy Storage Fund (GSF) H1 2025 earnings summary

Executive summary

• NAV per share declined to 100.5p from 107.0p, reflecting market headwinds, lower merchant revenue forecasts, and macroeconomic factors, partially offset by portfolio diversification and a new long-term contract in California.

• Operational capacity increased to 421.4 MW, with major construction milestones at Big Rock (California), Enderby (Great Britain), and Dogfish (Texas), targeting over 750 MW by February 2025 within a 1.25 GW total portfolio.

• Dividend yield rose to 12.3% (vs 8.9% prior year), with 3.5p per share paid during the period, in line with the updated dividend policy.

• Portfolio is diversified across Great Britain, Ireland, Germany, Texas, and California, with revenues uncorrelated between markets and significant progress in de-risking through new long-term contracts.

• Revenue for the period was £17.5m, down from £19.3m year-over-year, with operational EBITDA at £10.9m (vs £12.2m), reflecting market headwinds in Texas and Northern Ireland.

Financial highlights

• NAV per share fell 6.5% to 100.5p, with NAV total return since IPO at 42.7% and a -3.0% return for the six months.

• Net portfolio returns of 2.5% for the period, with positive contributions from new Resource Adequacy contracts and negative impacts from revenue curves and inflation.

• Portfolio weighted average revenue was £10.83/MWh/hr, with Germany and Ireland showing strong performance.

• Gearing increased to 11.5% of GAV, with available cash of £36m and drawn debt of £66m.

• Share price total return for the period was -8.2%, with the share price at a 43.4% discount to NAV.

Outlook and guidance

• Focus remains on energising Big Rock, Enderby, and Dogfish, with all three expected to be operational by February 2025, reaching 753.4 MW.

• 750 MW operational portfolio expected to fully cover dividends and fund expenses, assuming replication of prior year performance.

• Growing contracted revenue base expected to reduce merchant risk and support future NAV progression.

• The company expects to monetise US Investment Tax Credits for $60–80m in 2025, with allocation of proceeds to be determined.

• Despite short-term volatility, management remains confident in long-term value delivery, supported by contracted revenues and portfolio diversification.