REG - Ecofin US Renewables - Q4 2023 Net Asset Value

Ecofin US Renewables Infrastructure TrustAnnouncement

13/02/2024 16:45

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RNS Number : 0213D  Ecofin US Renewables Infrastr.Trust  13 February 2024

13 February 2024

 

ECOFIN U.S. RENEWABLES INFRASTRUCTURE TRUST PLC

(the "Company")

 

Q4 2023 Net Asset Value

 

Ecofin U.S. Renewables Infrastructure Trust PLC announces that its unaudited
net asset value ("NAV") as at 31 December 2023 on a cum-income basis was
$0.8521 per Ordinary Share (30 September 2023: $0.8910) or $117.7 million (30
September 2023: $123.0 million).

The key contributors to the changes in NAV were:

 

·      a $1.3 million decrease ($0.0097 per Ordinary Share) in fair
market value of investments due to the expected quarterly roll-off of
distributable cash flows in the forward-looking discounted cash flow models.
In accordance with the International Private Equity and Venture Capital
Valuation (IPEV) Guidelines, the Company continued to apply a discounted cash
flow ("DCF") valuation methodology for valuing the privately owned operating
renewable assets in its portfolio.  The valuation was performed by an
independent third-party valuation firm, Marshall & Stevens; and

 

·      a $3.7 million decrease ($0.0270 per Ordinary Share) in cash and
accrued financial assets as quarterly income did not cover operating expenses,
financing costs and dividend payments, primarily driven by lack of revenue at
Whirlwind, slower than expected insurance claim proceeds related to Whirlwind,
high corrective O&M costs at several solar sites, and increased insurance
premiums across the portfolio.

 

As part of the Strategic Review announced on 8 September 2023 (RNS Number:
7853L), Marathon Capital ("Marathon") is acting as financial adviser in
relation to a potential sale process for the Company's assets which, if
successful, would result in an expected return of cash to shareholders, in
connection with a winding up of the Company or similar transaction. The
Company and Marathon continue to make progress and the Board will make further
announcements when appropriate.

 

There can be no certainty as to the outcome of the Strategic Review or any
asset sale process, nor whether any potential transaction or transactions
arising could be successfully completed or the valuation at which it or they
could be completed. In addition, should a transaction arise that would involve
the sale of the Company's assets, it is expected that the implementation of
such transaction will be conditional upon shareholder approval at a general
meeting of the Company.

 

For further information, please contact:

 

 Ecofin Advisors, LLC (Investment Manager)             +1 913 981 1020

 Edward Russell

 Eileen Fargis

 Michael Hart

 Stifel (Corporate Broker)                             +44 20 7710 7600

 Edward Gibson-Watt

 Rajpal Padam

 Madison Kominski

 Apex Listed Companies Services (UK) Limited (Company  +44 20 3327 9720
 Secretary)

 Martin Darragh

Further information on the Company can be found on its website
at https://uk.ecofininvest.com/funds/us-renewables-infrastructure-trust-plc/
(https://uk.ecofininvest.com/funds/us-renewables-infrastructure-trust-plc/) .

 

The Company's LEI is 2138004JUQUL9VKQWD21.

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