Gore Street Energy Storage reports modest NAV total return

(Sharecast News) - Gore Street Energy Storage Fund reported a modest 1.1% net asset value total return for the year ended 31 March on Thursday, supported by a steady operational performance, the sale of US tax credits, and strong deployment of AI-led energy trading. The London-listed fund declared a special dividend of 3p per share, in addition to the regular 4p paid during the year.

Net asset value per share declined 4% year-on-year to 102.8p, driven by revised third-party revenue forecasts, bringing its total NAV return since IPO to 48%.

Operational EBITDA stood at £21m, down from £28.4m in the prior year, reflecting market headwinds despite a significant increase in energised capacity to 921.4 MWh from 392.1 MWh a year earlier.

Revenue from operations reached £35.3m, with an average of 408.9 MW in service.

The company said it achieved average revenues of £9.85 per MW/hr.

At year-end, Gore Street reported £30.5m in available cash and £56.3m in undrawn debt, with gearing at 17.8% of gross asset value.

CEO Alex O'Cinneide said the company was well-positioned to capitalise on revenue opportunities across five grids, citing the energisation of new assets in Great Britain, California, and Texas, and a 12-year revenue contract for the Big Rock project worth over $14m annually.

Post year-end, Gore Street announced agreements to sell US investment tax credits for its Dogfish and Big Rock assets for a total of $84m, exceeding prior expectations.

All Dogfish proceeds and half of Big Rock's had been received, with the remainder expected by year-end.

Following shareholder consultation and a strategic review by Alexa Capital, the board reaffirmed its capital allocation strategy.

That, the board said, included using ITC proceeds to fund the 3p special dividend, repay $30m of Big Rock-related loans, and enhance existing GB assets such as Stony and Ferrymuir.

Starting in the third quarter of the 2026 financial year, the fund said it would transition to a dividend policy aligned with project-level cash flows, with a quarterly payout of 0.75p per share expected through the 2027 period.

Higher distributions remained possible if merchant market revenues improved.

The company also highlighted the outperformance of its AI-based trading platform, Gore Street Energy Trading, which beat the Modo industry benchmark by 11% and now managed 68% of its UK portfolio.

Operationally, Gore Street said it avoided nearly 12,000 tonnes of carbon dioxide equivalent emissions and stored over 39,000 MWh of renewable electricity during the period.

The ESG report for the 2025 financial year was due for release in September.

At 1400 BST, shares in Gore Street Energy Storage Fund were down 6.97% at 59.26p.

Reporting by Josh White for Sharecast.com.