(Alliance News) - SDCL Energy Efficiency Income Trust PLC said Monday its portfolio is well placed to handle the fallout from the Covid-19 outbreak.
SDCL said the portfolio will generate an "attractive total return for investors". The company's portfolio currently consists of 26 energy efficiency investments located in the UK, continental Europe and North America.
"The assets provide essential and critical energy services, which are typically availability rather than demand-based, with the company's clients including the public sector as well as large, well-capitalised commercial and industrial counterparties," SDCL said.
The trust said its main priority is ensuring these services continue to its counter-parties.
SDCL added: "The portfolio is well diversified by asset and source of revenue and, as a whole, is insulated against material short term energy market volatility as off-take agreements are typically structured and contracted on pre-determined terms."
The company said its assets are currently performing as expected.
As a result, SDCL said it is on track to achieve its target dividend of 5.0 pence for the year ending March 31.
SDCL added: "Based on current portfolio performance and assuming the return to more normal operating conditions post Covid-19 in the short to medium term, the board remains confident in the forecast future portfolio cashflows which allows it to reiterate the previously published dividend guidance of 5.5p per share for the next financial year to March 2021 and a progressive dividend thereafter."
The company said it has a healthy liquidity position and benefits from holding significant cash balances.
Shares in SDCL Energy Efficiency were down 3.4% in London on Monday at 79.20 pence each.
By Paul McGowan; paulmcgowan@alliancenews.com
Copyright 2020 Alliance News Limited. All Rights Reserved.
Sdcl Energy Ef. (SEIT)