SDCL Energy Efficiency net asset value down on high interest rates

(Alliance News) - SDCL Energy Efficiency Income Trust PLC on Monday reported a decline in net ...

Alliance News 4 December, 2023 | 9:23AM
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(Alliance News) - SDCL Energy Efficiency Income Trust PLC on Monday reported a decline in net asset value, citing high interest rates.

SDCL Energy Efficiency invests in assets in the energy efficiency sector, such as electric vehicle charging infrastructure and geothermal and biogas projects.

The company said net asset value as at September 30 fell 15% to 90.6 pence per share from 106.1p a year prior. It said that "higher for longer" interest rates and its impact on discount rates "created headwinds" for its asset values.

Dividends for the six months to September 30 amount to 3.12 pence per share, up 4.0% from 3.0p a year prior.

The company said it was on track for its targeted full-year dividend of 6.24p per share, up 4.0% from 6.0p paid for financial 2023.

Chair Tony Roper said SDCL Energy was taking action aimed at improving returns from its investment portfolio and narrowing the share price discount.

Looking ahead, he said: "The outlook for elevated energy costs and continued energy security concerns reinforces the economic benefits of energy efficiency solutions provided by SEEIT to its customers, delivering them lower cost, cleaner and more reliable energy solutions."

SDCL Energy shares were 0.8% higher at 62.58 pence each on Monday morning in London.

By Tom Budszus, Alliance News slot editor

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
SDCL Energy Efficiency Income Ord 65.50 GBX 0.46 -

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