VH Global Sustainable Energy Opportunities Plc - GSEO - Share chat

Stock Discussions
1

https://victory-hill.com/

This is currently a PrimaryBid IPO (and likely on other platforms for its IPO)

VH+Sustainable+Energy+Offer+Leaflet.pdf (2.4 MB)

KID+VH+Global+Sustainable+Energy+Opportunities+plc+FINAL+V3[1].pdf (487.9 KB)

The Company will seek to generate stable returns, principally in the form of income distributions, by investing in a diversified portfolio of global sustainable energy infrastructure assets, predominantly in countries that are members of the EU, OECD, OECD Key Partner Countries or OECD Accession Countries.

The Company invests in sustainable energy infrastructure investments that align with the UN Sustainable Development Goals where energy and energy infrastructure investments are a direct contributor to the acceleration of the energy transition towards a net zero carbon world. The Company categorises investments into 4 different “Pathways” that relate directly to the acceleration and achievement of the energy transition, these are: (i) Addressing Climate Change; (ii) Energy Access; (iii) Energy Efficiency; and (iv) Market Liberalisation.

The Company will look to achieve NAV growth by investing in a mix of stable yielding sustainable energy infrastructure investments that are in operation, in construction or “ready-to-build” but will not invest in projects that are under development or are in pre-consent stages.

By targeting a diversified portfolio across different proven technologies, the Company will seek to spread, and therefore reduce, some of the key underlying risks relating to its sustainable energy infrastructure investments. The geographic diversification in the portfolio will further reduce the exposure of the Company to a particular energy market and specific “change in law” risks related to specific market renewables and broader energy market legislation.

2

Bump, it’s trading.

3

Hey @Eden @Jules2, this was added to your app today:

2 Likes
4

Bought some December only way was down!!
Doubled up yesterday.
Up 15% today (so far)
NAV up 10% and increasing buybacks.
Nice start to the day.

Today’s announcement 4 RNS

1 Like
5

7.3% dividend there’s better out there BUT they have a lot of projects not yet complete.

34% discount very good.

Debt minimal.

Management company very large and knowledgeable

Presently up 13% but would still be happy to add to.

1 Like
6

Fallen back.

Dividend 8.0% there’s better.
Cover 1.1 again there’s better
Debt 2% you will struggle to find debt that low in renewable Infrastructure.
Discount 41%. Ludicrous high and nothing to suggest why. Specially when there’s lots of assets yet to come onstream. These assets are valued at cost. Recently an investment trust sold a “shovel ready” assets at twice its nav value. It was also valuing at cost.
If you buy land without planning permission receive planning permission then its value increses materially. But they continue to value at cost.
Which means the real discount is probably higher and there’s considerably more income yet to come on stream.
Also worth noting very diversified across geographys and assets.
I Need to add to this.

From factsheet Q4 23

“Income from the portfolio remained robust during the quarter from the 58% of the portfolio that
is operational, with the dividend already 1.1x covered. As further projects reach operational status,
the dividend coverage is set to strengthen. The Company’s operational assets continue to benefit
from over 90% of contracted and inflation-linked revenues.
Leverage
Total leverage of the Company is 1.9% of NAV, which comprises asset-level leverage at its US asset.
The Company does not currently employ short-term leverage at the fund level”

7

Emailed GSEO to see if they will need to borrow to complete all the projects they are building.
The answer was no
In reference to emailing them
The reply

“All the projects that are currently in construction are fully funded. We do not require additional capital to fulfil these commitment”
Last check shows they have £74 million cash.
With some projects all ready completed but not yet providing an income the £74 million represents a considerable increase in income and NAV.

1 Like
8

PS projects in construction are valued at cost
Only when they are up and running are properly valued.

9

Keep adding gradually.

Poviding everything is above board with their comments around funding and what hopefully should be tail winds for discount rates dropping, you would expect to see a rise in SP, a growing dividend and solid dividend cover!

I think there is a risk around how concentrated the revenue is to only a few assets, but I’m willing to take that risk which should reduce over time…again, providing no unforseen events occur!

1 Like
10

GSEO on YouTube. recorded January 2024 so a little out of date
"Inflation is our friend " one of the statements of the manager!
About 80% inflation-linked income
Miniscule debt
Diversified across geographys and assets.

Only 54% of assets producing an income (January 2024)
Cash in the bank to finish them.
This appears to be mainly Australia solar and BESS combined.

LATEST RNS

"Investment in 248.4MW solar & onshore wind portfolio in Spain, Portugal and Sweden

VH Global Sustainable Energy Opportunities plc (“GSEO” or the “Company”) - the London-listed investment company managed by Victory Hill Capital Partners LLP focused on investing in energy infrastructure essential in the global transition towards net zero - is pleased to announce the acquisition of a portfolio of seven solar and two wind assets across Europe. The transaction will be completed in two phases. Once fully operational, the portfolio will have a total installed capacity of 248.4MW and will be expected to generate 489,900 MWh per year, equivalent to powering over 100,000 Spanish homes annually while saving c150,000 tonnes CO2 emissions per annum.

The first phase of the investment is the acquisition of a portfolio of five assets with a generation capacity of 59.8MW and project rights of four ready-to-build (“RTB”) solar PV assets in Spain with a generation capacity of 188.6MW.

The total consideration for the first phase is EUR 53m for a portfolio of five assets comprising:

· 3.7MW operational solar PV plant in Spain;

· 6MW operational onshore wind asset in Sweden;

· 20MW solar PV plant under construction in Portugal;

· 10.3MW solar PV plant under construction in Spain; and

· 19.8MW RTB onshore wind asset in Spain

The second phase of the investment consists of funding the construction of the 188.6MW RTB solar PV assets, for a total amount of EUR45m in Q4 of this year. The construction is to be fully funded by a European strategic fund (“equity co-investor”) and project finance debt.

Once the second phase is completed, GSEO will be the largest owner of the portfolio with an effective ownership of 43.5%, with the balance split between the equity co-investor and joint venture partners, Spanish Power S.L., a developer and owner of renewable projects in Iberia and Sweden."

Note cancelling another project in the UK to pay for the above AND will end up with some debt.

Full rns