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(Alliance News) - SDCL Energy Efficiency Income Trust PLC on Wednesday reported an annual loss and a lower net asset value as a result of increased discount rates.
SDCL Energy Efficiency invests in assets in the energy efficiency sector, such as electric vehicle charging infrastructure and geothermal and biogas projects.
Net asset value per share was 101.5 pence at March 31, down 0.4% from 108.4p at the same time a year prior. The trust said this was largely as a result of increases in discount rates, which lowers to value of assets.
The company swung to a pretax loss in the financial year ended March 31 of GBP19 million from a profit of GBP80 million the year prior. The trust said this reflected a below-expectation performance and increased discount rates, including an unrealised loss of GBP81 million from discount rate increases.
"During the year, and in particular since early September 2022, there were significant increases in interest rates globally, including in SEEIT's key geographical areas. This has stemmed from geopolitical uncertainties and a high inflationary environment due, in part, to high energy costs. This has led to an increase in discount rates across the whole investment portfolio," the company explained.
However, portfolio valuation stands at GBP1.10 billion as at March 31, up from GBP913 million on the same date a year earlier.
SDCL Energy Efficiency declared 6.0 pence per share in dividends for financial 2023, up 6.8% from 5.62p a year prior.
Looking ahead, the trust said it is well-positioned to unlock long-term growth opportunities from its established and diversified portfolio of investments.
Shares were up 1.4% at 75.31 pence each on Wednesday morning in London.
By Xindi Wei, Alliance News reporter
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