VH Global Energy Infrastructure (ENRG) H1 2024 earnings summary

Executive summary

• Diversified global portfolio of sustainable energy infrastructure across 36 assets in 7 countries and 6 technologies, targeting power generation, storage, and transmission, supporting the energy transition and SDGs.

• Portfolio generates predictable income, supporting a progressive, inflation-linked dividend policy and capital growth potential, with over 90% of revenues from long-term PPAs.

• Resilient performance with disciplined capital allocation, active management, and minimal interest rate risk; leverage at 1.9% of NAV and no reliance on subsidies.

Financial highlights

• Net Asset Value (NAV) per share at 110.84p and portfolio NAV at £447.7m as of 30 June 2024, down from £483.8m at year-end 2023, mainly due to £22.2m FX loss.

• Total annualised NAV return since IPO (Feb 2021) is 8.0%; H1-24 return was -1.2%.

• Dividend paid for H1 2024 was 2.84p/share, with a full-year target of 5.68p/share and coverage of 1.1x; dividend yield at 7.5% and company traded at a 31.8% discount to NAV.

• Ongoing charges ratio for the period was 1.5%; leverage remained low at 1.9% of NAV.

• EPS for H1-24 was (3.93)p vs 4.76p in H1-23; total comprehensive loss for H1-24: £16.1m.

Outlook and guidance

• Well positioned to benefit from global energy transition trends, with electricity's share of final energy consumption expected to rise to 30% by 2030 and global sector investment exceeding $3tr in 2024, 60% in clean energy.

• Data centre demand and AI expected to drive significant increases in electricity consumption, creating new investment opportunities in renewables and storage.

• Focus on completing construction of existing assets and active management; dividend target for FY 2024 reaffirmed at 5.68p/share.