REG - HydrogenOne Cap Gwth - Net Asset Value and Portfolio Update

Hydrogenone Capital GrowthAnnouncement

08/02/2023 07:00

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RNS Number : 2292P  HydrogenOne Capital Growth PLC  08 February 2023

HydrogenOne Capital Growth plc ("HydrogenOne" or the "Company")

LEI: 213800PMTT98U879SF45

8 February 2023

Net Asset Value and portfolio update

HydrogenOne, the first London-listed fund investing in clean hydrogen for a
positive environmental impact, today announces its quarterly net asset value
and portfolio update for the period ended 31 December 2022.

Key highlights for the quarter

·      Positive outlook underpinned by macro tailwinds and supportive
regulatory regimes in the USA and Europe;

·      Net Asset Value ("NAV") per share of the Company 97.3 pence, an
increase of 1.6% from 31 December 2021, and 0.8% from 30 September 2022;

·      Diversified portfolio of hydrogen assets, delivering growth for
investors across the portfolio;

·      Growth delivery from private portfolio companies, accounting for
97% of the portfolio, delivering an aggregate £33m in revenue in 2022, an
increase of 110% compared to 2021;

·      First investment in a clean hydrogen production project in
Germany (completed post quarter end); and

·      SFDR Article 9 classification and signatory of UN PRI.

Net asset value

At 31 December 2022, the unaudited NAV per share of the Company was 97.3
pence, representing a quarterly increase of 0.8% and an increase of 1.6% for
the 12 month period ended 31 December 2022, the first financial year since its
launch in 2021. The Company had net assets of £125.3 million at that date.

 

The quarterly increase was driven primarily by valuation uplifts to the
Company's portfolio of private investments, positively contributing 1.6 pence
(1.7%) per share to the NAV movement.

 

NAV bridge

 

 Opening NAV per share at 30 Sep 2022  96.5p
 Portfolio valuation uplifts           1.6p
 Company expenses                      (0.8)p
 Closing NAV per share at 31 Dec 2022  97.3p

 

Financial summary

                                             31 Dec 22  30 Sept 22  Change  31 Dec 21  Change
 NAV                                         £125.3m    £124.3m     0.8%    £102.8m    21.9%
 NAV per share                               97.3p      96.5p       0.8%    95.8p      1.6%
 Portfolio valuation                         £106.8m    £103.3m     3.4%    £47.5m     124.8%
 Portfolio fair value gain / (loss) on cost  £5.6m      £3.1m       80.6%   £(1.6)m    n/a
 Other net assets (incl cash)                £18.5m     £21.0m      -16.7%  £55.3m     -66.5%

 

Portfolio

·    At 31 December 2022, the Company's private portfolio comprised nine
investments in hydrogen assets in the UK and Europe with an aggregate value of
£103.1 million, as well as a small allocation to strategic listed hydrogen
companies.

 

·    The portfolio continues to perform in line with the expectations of
the Investment Adviser, HydrogenOne Capital LLP.

 

·    Seven of the Company's private investments, representing 89% of its
invested portfolio by value,  are revenue-generating, producing equipment and
technology solutions for clean hydrogen production. The unaudited aggregate
revenue from these investments was c. £33m in the 12-month period to 31
December 2022, an increase of 110% from 2021 on a pro-forma basis.

 

·    The Company is invested in two private hydrogen production companies,
representing 8% of the invested portfolio, located in Norway and Germany,
which are expected to generate material cash flow from the middle of the
decade as projects come on line.

 

·    Additional investment in strategic, global hydrogen equities
representing 3% of the invested portfolio, in revenue generating businesses.

 

·      The portfolio weighted average discount rate at 31 December 2022
was 12.9% (30 September 2022 12.8%).

Portfolio developments

·    Sunfire GmbH (17.4% of NAV), the leading German industrial
electrolyser producer, delivered a 250kw high temperature solid oxide
electrolyser to RWE. Separately, it agreed manufacturing JV with Vitesco
Technologies (post quarter-end).

 

·    HiiROC Limited (10.3% of NAV), a UK-based thermal plasma electrolysis
developer, won the first UK project with Centrica to inject hydrogen at Brigg
Gas Fired Power station, as part of the Net Zero Technology Centre's £8
million Open Innovation Programme.

 

·    Strohm Holding B.V. (9.3% of NAV), a Netherlands-based hydrogen
pipeline company, completed a €29m investment round. Separately, it won a
contract from ECOnnect to provide over 11km of its Thermoplastic Composite
Pipe for the TES Wilhelmshaven Green Gas Terminal in Germany.

 

·    NanoSUN Limited (9.2% of NAV), a UK-based developer of hydrogen
distribution and mobile refuelling equipment, achieved a key milestone by
completing the first serial production of its enhanced Pioneer Mobile Hydrogen
Refuelling Station, named Henry Cavendish, for delivery to Octopus Hydrogen,
in the UK.

 

·    Gen2 Energy AS (2.7% of NAV), a Norwegian green hydrogen project
developer, signed an agreement with Åfjord municipality in Norway for
large-scale production and shipping of green hydrogen.

Investment activity

·    The Company completed a second tranche investment of EUR 1.25 million
in Strohm, the world's first and leading producer of Thermoplastic Composite
Pipe. In total, HydrogenOne has invested EUR 11.25 million in the EUR 29
million investment round.

 

·    Post the quarter end, the Company invested £1.4 million into
Cranfield Aerospace Solutions Ltd, a pioneer in hydrogen-powered passenger
flight, marking the final tranche of the £7 million investment by the
Company, as previously announced.

 

·    Post the quarter end, the Company announced its first investment in a
green hydrogen project, at Thierbach in Germany (the "Thierbach Project")
where it will invest £2.5 million (EUR 2.8 million) alongside other
institutional investors and HH2E.

Further details on the Company's private investments, including the new
investments referenced above, can be found on its website at
https://hydrogenonecapitalgrowthplc.com/portfolio/private-investments
(https://hydrogenonecapitalgrowthplc.com/portfolio/private-investments) .

ESG

·    The Company was classified as an Article 9 Fund under the SFDR and EU
Taxonomy Regulation and completed an EU Taxonomy alignment assessment on its
private portfolio.

 

·    The Company also became a signatory of the United Nations-supported
Principles for Responsible Investment.

 

·    The first reporting in accordance with the SFDR Article 9
requirements and the International Sustainability Standards Board framework
will be published with the FY2022 Annual Report, expected to be released in
April 2023.

Factsheet and investor webinar

The 31 December 2022 factsheet is now available on the Company's website:
https://hydrogenonecapitalgrowthplc.com/investors/factsheets/.

 

The Company's Investment Adviser, HydrogenOne Capital LLP, will be hosting a
30-minute live webinar presentation for investors and analysts on Q4 2022
Factsheet and NAV update commencing at 9am GMT today.

 

In order to register for the webinar, please follow the link:
https://www.investormeetcompany.com/hydrogenone-capital-growth-plc/register-investor
(https://www.investormeetcompany.com/hydrogenone-capital-growth-plc/register-investor)
.

 

The presentation will also be available on the Company's website at
https://hydrogenonecapitalgrowthplc.com/investors/documents-and-publications/
(https://hydrogenonecapitalgrowthplc.com/investors/documents-and-publications/)
.

 

 

Notes

 

This announcement is not an offer for sale or subscription or solicitation to
purchase shares in any jurisdiction. This announcement contains inside
information.

 

For further information, please visit www.hydrogenonecapitalgrowthplc.com
(http://www.hydrogenonecapitalgrowthplc.com) or contact:

 

 HydrogenOne Capital LLP - Investment Adviser  +44 20 3830 8231
 JJ Traynor/Richard Hulf

 Eva Bezruchko

 Barclays Bank PLC - Corporate Broker          +44 20 7623 2323


 Dion Di Miceli                                BarclaysInvestmentCompanies@barclays.com

 Stuart Muress

 FTI Consulting - Media Enquiries

 Matthew O'Keeffe                              +44 20 3727 1725

 Cally Billimore                               hygen@fticonsulting.com

 

About HydrogenOne:

 

HydrogenOne is the first London-listed hydrogen fund investing in clean
hydrogen for a positive environmental impact. The Company was launched in 2021
with an investment objective to deliver an attractive level of capital growth
by investing in a diversified portfolio of hydrogen and complementary hydrogen
focussed assets. INEOS Energy is a strategic investor in HydrogenOne. The
Company is listed on the London Stock Exchange's main market (ticker code:
HGEN). The Company is an Article 9 climate impact fund with an ESG policy
integrated in investment decisions and asset monitoring.

IMPORTANT NOTICE

This announcement does not constitute an offer to sell, or the solicitation of
an offer to acquire or subscribe for, shares in the Company in any
jurisdiction. The distribution of this announcement outside the UK may be
restricted by law. No action has been taken by the Company that would permit
possession of this announcement in any jurisdiction outside the UK where
action for that purpose is required. Persons outside the UK who come into
possession of this announcement should inform themselves about the
distribution of this announcement in their particular jurisdiction.

This announcement contains (or may contain) certain forward-looking statements
with respect to certain of the Company's plans and/or the plans of one or more
of its investee companies or projects and their respective current goals and
expectations relating to their respective future financial condition and
performance and which involve a number of risks and uncertainties. The Company
cautions readers that no forward- looking statement is a guarantee of future
performance and that actual results could differ materially from those
contained in the forward- looking statements.

This announcement contains inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014, as it forms part of UK domestic law ("MAR"). Upon
publication of this announcement, the inside information is now considered to
be in the public domain for the purposes of MAR. The person responsible for
arranging the release of this announcement on behalf of the Company is
HydrogenOne Capital LLP.

 

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