(Alliance News) - Gresham House Energy Storage Fund PLC on Wednesday reported a negative net asset value total return in the first half of the year due to lower demand and unsteady prices.
The investor in utility-scale battery energy storage systems reported a NAV per share of 146.66 pence at June 30, down 5.7% from 155.51p at December 31, but up 1.1% from 145.11p at the same time a year prior.
NAV total return was negative 3.5% in the first half of 2023, with Gresham noting that recent weaker trading was driven by low price volatility due to lower demand amid higher energy bills, as well as the current low utilisation of batteries by National Grid ESO.
"With National Grid system issues expected to be addressed in the relatively near term, and new capacity coming into operation, we have no doubt that, as we enter 2024, the long-term return opportunities for Grid remain as strong as ever," commented fund manager, Ben Guest.
Gresham declared an interim dividend of 3.675p per share up marginally from 3.5p the year before, and said it is committed to pay a full-year dividend of 7.35p, compared to 7.00p in 2022.
Looking ahead, Gresham said its positon in battery energy storage systems is a "strategic cornerstone"
to "take advantage of the market's recovery."
Chair John Leggate said: "In particular, strong dividend cover in 2021 and 2022 has allowed us to maintain our committed dividend increase for 2023, despite reduced revenues this year. As more projects come online and installed capacity increases later in 2023 and into 2024, we expect full run-rate dividend cover to return."
Shares in Gresham were up 0.4% at 107.40 pence each in London on Wednesday morning.
By Sabrina Penty, Alliance News reporter
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Gresham House (GRID)
National Grid (NG.)