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(Alliance News) - Riverstone Energy Ltd on Wednesday said volatile energy prices, higher interest rates, and sustained inflation hurt the value of the growth companies in which it invests in the first half of the year.
Riverstone Energy invests in energy companies, both renewable and non-renewable. It is managed by Riverstone Holding LLC.
Net asset value per share on June 30 was USD12.90, down from USD14.52 on December 31 and USD13.64 a year ago. The share price also declined in the six-month and 12-month periods, while the share price discount to NAV widened to 44.7% from 43.5% in December and 40.8% in June 2022.
"After the political upheaval created by the war in Ukraine in 2022 and the significant price moves in energy markets that resulted, the first half of 2023 has seen a retrenchment of energy prices towards or below pre-invasion levels," commented Chair Richard Horlick. However, he said the high energy prices have been replaced by inflation elsewhere and resulting interest rate hikes, which have hurt Riverstone's investments in alternative energy companies.
"The first half of the year saw some challenging conditions, particularly for small-cap, high-growth companies in emerging technology fields," he said.
Riverstone Energy's portfolio includes 12 investments in the decarbonisation and energy transition space.
The company declared no interim dividend, unchanged from a year before. However, it noted that it has returned GBP136.5 million to shareholders since May 2020 by buying back 41% of the shares that were outstanding at that time.
Riverstone Energy shares were down 1.2% at 571.00 pence near midday on Wednesday in London.
By Tom Waite, Alliance News editor
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