Half Year 2025 SDCL Energy Efficiency Income Trust PLC Earnings Call Transcript
Key Points
- SDCL Energy Efficiency Income Trust PLC (LSE:SEIT) has a large and diversified portfolio valued at GBP1.5 billion, with operations in 10 countries, primarily in the United States.
- The company reported stable operations and performance, with net asset value per share slightly increasing to 90.6p from 90.5p in March.
- SEEIT's portfolio is generating total returns of about 9.4% to 11%, with a 13% dividend yield fully covered by cash flow.
- The company is actively managing its gearing levels, maintaining low levels of leverage compared to its peers, and has plans to reduce short-term debt.
- SEEIT is focused on shareholder value, with strategies in place to address the discount to net asset value and improve share price through potential share buybacks and capital recycling.
- SEEIT shares are trading at a significant 45% discount to net asset value, reflecting market distress and dislocation in price versus value.
- The investment trust market is currently distressed, impacting SEEIT's share price and market conditions.
- SEEIT faces macroeconomic headwinds, including higher interest rates and inflation, which could affect future performance.
- The company experienced negative FX movements, which impacted net asset value despite positive portfolio valuation movements.
- Operational challenges were noted in some assets, such as Red Rochester, which faced lower demand and higher maintenance costs, affecting EBITDA.
Good morning and welcome to the SDC Energy Efficiency Income Trust interim results presentation for the period ending September 30, 2024. I'm Tamsin, I'm one of the fund managers and one of my responsibilities is investor relations. So today, we'll share updates on our progress and outline what we've been doing to increase total return, adapt to market conditions, and support the share price while we continue to unlock the world's most valuable energy resource, which is of course efficiency.
For those of you who don't know us, we've got some brief bios on the slide. Jonathan Maxwell, who is our CEO and founder will take you through the overview and highlights. Ben Griffiths, who is my colleague in Fund Management will take you through performance along with me. That will be Ben's opportunity to give you an in-depth overview of what's been happening at our top five largest assets. Eugene Kinghorn, who is our group CFO, will take you through the financial highlights before handing back
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