SDCL Energy board members buy 104,343 shares as trades below NAV

Tue, 04th Oct 2022 10:37

(Alliance News) - SDCL Energy Efficiency Income Trust PLC on Tuesday said that board members had bought over 104,343 shares signalling continued confidence in the value of energy efficiency.

SDCL said that "recent market volatility" has resulted in the company's share price trading below its most recently published net asset value per share but said the company was investing in "one of the largest and fastest growing sources of energy cost reductions, and decarbonisation."

SDCL is an investment company focused on assets in the energy efficiency sector, such as electric vehicle charging infrastructure and geothermal and biogas projects.

Shares in SDCL were trading 3.1% higher at 103.30 pence each on Tuesday morning. As of March 31, NAV was at 108.4 pence per share.

Associates and individuals from the investment manager also participated in the purchasing of the shares.

The company noted it is "in a favourable position to continue to execute on its investment strategy" as it has a robust liquidity position and remains below both its medium-term and short-term gearing target.

It said that it benefits from predominantly long term contracted cash flows with more than half of its revenues being inflation linked and its NAV is positively correlated with inflation.

Chief Executive Officer Jonathan Maxwell said: "There are times, particularly during periods of market volatility, when market prices and value can diverge significantly, compared either to prevailing net asset values on the one hand, or to future prospects on the other. Energy efficiency has never been more valuable as a source of cost and carbon emission reductions as well as energy security. Against this market background and outlook, members of the board and individuals at the investment manager have taken the opportunity to acquire shares in the market."

SDCL also confirmed it completed the acquisition of United Utilities Renewable Energy Ltd for GBP100 million, which was a subsidiary of FTSE100-listed United Utilities Group PLC.

United Utilities Renewable is a portfolio of on-site, predominantly solar photovoltaic operational projects totalling 69 megawatts across 70 sites in northwest England.

"The assets provide renewable energy generated on-site directly to the end-user, United Utilities Water Ltd. UUW is the regulated water and wastewater business of United Utilities Group," SDCL explained.

The acquisition was funded from existing cash reserves.

By Chris Dorrell; chrisdorrell@alliancenews.com