(Alliance News) - SDCL Energy Efficiency Income Trust on Friday reported sharp increases in interim profit and investment income, as the energy efficiency investor expressed optimism in its prospects.
The FTSE 250 constituent said pretax profit in the six months ended September 30 totalled GBP23.0 million, a 34% increase from GBP17.2 million a year before.
SDCL Energy Efficiency ascribed this to an increase in value derived from the comparatively larger underlying investment portfolio.
It explained its portfolio comprises investments that seek to deliver cheaper, cleaner and more reliable energy solutions and that this marketplace is growing due to existing commercial and, increasingly, political efforts.
The London-based trust's total investment income in the period amounted to GBP27.0 million, up 39% from GBP19.4 million a year prior.
SDCL Energy Efficiency's portfolio valuation grew 42% to GBP785 million at 30 September, from GBP553 million quoted at March 31. This was largely a result of investments made in each period, it said.
The company's net asset value improved 36% to GBP943.6 million from GBP693.8 million in the same period.
SEEIT stated this was due to new investments made and the performance of the underlying portfolio.
Net asset value per share increased 2% to 104.5 pence at September 30 from 102.5p at March 31.
SEEIT declared an interim dividend of 2.81p per share, up 2.2% from two quarterly interim dividends of 1.375 pence a year before.
The investment trust dedicated to investments in energy efficiency projects stated it expects its target markets to continue growing.
Current market drivers are increasing levels of focus on decarbonisation targets in the public and private sector, the need for energy security and resilience, and relatively high energy prices.
In Europe government policies such as the European Commission's Renovation Wave that involves energy efficiency measures in about 35 million buildings across the continent are also expected to help accelerate the market and translate into project investment opportunities for the trust, SEEIT said.
Likewise, in the US the Biden administration's prioritisation of clean energy and infrastructure in its climate policies will likely benefit the investment trust too.
"This is a hugely significant time for the energy efficiency sector. Post the United Nations' 26th climate change conference, there is now widespread recognition of the role it can play in the global effort to tackle the climate crisis. We are very well positioned to continue leading in this market and generate value for our shareholders through expanding our portfolio of projects that deliver cheaper, cleaner and more reliable energy solutions," Chief Executive Jonathan Maxwell commented.
Shares in SDCL Energy Efficiency remained flat at 117.00 pence each on Friday morning in London.
By Abby Amoakuh; abbyamoakuh@alliancenews.com
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Sdcl Energy Ef. (SEIT)