REG - SDCL Energy Effcncy. - Company update

SDCL Energy Efficiency Income TrustAnnouncement

05/02/2024 07:00

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RNS Number : 9354B  SDCL Energy Efficiency Income Tst  05 February 2024

5 February 2024

 

SDCL Energy Efficiency Income Trust plc

("SEEIT" or the "Company")

 Company update

Contract Renewal

SEEIT is pleased to announce that Cokenergy, a project within its Primary
Energy portfolio, has renewed its long term contract with Cleveland Cliffs at
the Indiana Harbor Works East steel mill in the US. The contract provides for
the onsite supply of steam and electricity which is generated by Primary
Energy's facility from waste heat from the onsite coke ovens.

Final terms align with the assumptions included in the September 2023
valuation and reflect the in principle agreement reported in the interim
accounts published in December 2023 ("Interim Accounts"). The renewal will
also de-risk elements of the contract by passing through certain costs and
introducing improved inflation correlation of revenues.

Portfolio Trading Update

The Company is pleased to report that in aggregate the operational cashflows
being generated in the final quarter of the calendar year 2023 have remained
in line with the Investment Manager's expectations, continuing the progress
outlined in the Interim Accounts, notwithstanding there has been some
variability in individual asset performances in the period. The Investment
Manager continues to monitor project specific KPI's carefully and actively
engage with the different management teams as required. Further project
specific updates will be provided in its 31 March 2024 results.

Portfolio Disposals

The pursuit of selected disposals from the portfolio is a priority for the
Investment Manager and it has now received a number of credible proposals in
relation to multiple assets which are within its range of pricing expectations
and thereby support the most recently published net asset value. Whilst there
can be no certainty that these proposals will result in a sale, the Investment
Manager is focused on progressing these processes expediently and will provide
further updates in due course.

 

 

For Further Information

 

 Sustainable Development Capital LLP  T: +44 (0) 20 7287 7700

 Jonathan Maxwell

 Purvi Sapre

 Eugene Kinghorn

 Toby Richardson

 Ben Griffiths

 Jefferies International Limited      T: +44 (0) 20 7029 8000

 Tom Yeadon

 Gaudi le Roux

 TB Cardew                            T: +44 (0) 20 7930 0777

 Ed Orlebar                           M: +44 (0) 7738 724 630

 Henry Crane                          E: SEEIT@tbcardew.com (mailto:SEEIT@tbcardew.com)

 

 

About SEEIT

 

SDCL Energy Efficiency Income Trust plc is a constituent of the FTSE 250
index. It was the first UK listed company of its kind to invest exclusively in
the energy efficiency sector. Its projects are primarily located in North
America, the UK and Europe and include, inter alia, a portfolio of
cogeneration assets in Spain, a portfolio of commercial and industrial solar
and storage projects in the United States, a regulated gas distribution
network in Sweden and a district energy system providing essential and
efficient utility services on one of the largest business parks in the United
States.

The Company aims to deliver shareholders value through its investment in a
diversified portfolio of energy efficiency projects which are driven by the
opportunity to deliver lower cost, cleaner and more reliable energy solutions
to end users of energy.

The Company is targeting an attractive total return for shareholders of 7-8
per cent. per annum (net of fees and expenses and by reference to the initial
issue price of £1.00 per Ordinary Share), with a stable dividend income,
capital preservation and the opportunity for capital growth. The Company is
targeting a dividend of 6.24p per share in respect of the financial year to 31
March 2024. SEEIT's last published NAV was 90.6p per share as at 30 September
2023.

Past performance cannot be relied on as a guide to future performance.

Further information can be found on the Company's website
at www.seeitplc.com (http://www.seeitplc.com/) .

Investment Manager

 

SEEIT's investment manager is Sustainable Development Capital LLP ("SDCL"), an
investment firm established in 2007, with a proven track record of investment
in energy efficiency and decentralised generation projects in the UK,
Continental Europe, North America and Asia.

SDCL is headquartered in London and also operates worldwide from offices in
New York, Dublin, Madrid, Hong Kong and Singapore. SDCL is authorised and
regulated in the UK by the Financial Conduct Authority.

Further information can be found on at www.sdclgroup.com
(http://www.sdclgroup.com/) .

 

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