Last close As at 06/08/2026
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Market capitalisation
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Research: Investment Companies
Triple Point Energy Transition’s (TENT’s) cash dividend cover ratio was 1.1x (1.2x excluding one-off listing expenses) for FY23, up from 0.14x a year ago when the portfolio was not fully deployed. TENT’s relatively strong dividend yield (9%) and high discount to NAV (32%) have been difficult to explain and have become more anomalous now the dividend is clearly covered by ongoing cash flows. TENT’s 1.1x dividend coverage was ahead of our estimate of 1.0x and our forecasts are now under review. NAV per share was 99.44p, up from 99.12p a year ago, and virtually flat on September 2022 (99.53p), with a total NAV return of 9.2% for the year.
Triple Point Energy Transition |
FY23 results show fully covered 9% yield |
Investment companies Renewable energy infrastructure |
20 June 2023 |
Analysts
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Triple Point Energy Transition’s (TENT’s) cash dividend cover ratio was 1.1x (1.2x excluding one-off listing expenses) for FY23, up from 0.14x a year ago when the portfolio was not fully deployed. TENT’s relatively strong dividend yield (9%) and high discount to NAV (32%) have been difficult to explain and have become more anomalous now the dividend is clearly covered by ongoing cash flows. TENT’s 1.1x dividend coverage was ahead of our estimate of 1.0x and our forecasts are now under review. NAV per share was 99.44p, up from 99.12p a year ago, and virtually flat on September 2022 (99.53p), with a total NAV return of 9.2% for the year.
FY21* |
FY22 |
H123 |
H223e |
FY23e |
FY24e |
FY25e |
|
DPS (p) |
2.00 |
5.50 |
2.75 |
2.75 |
5.50 |
5.50 |
5.50 |
Dividend cover (x) |
0.98 |
1.02 |
1.00 |
1.07 |
1.20 |
Source: Triple Point Energy Transition data, Edison Investment Research. Note: *Year of IPO. Financial year end is March. Forecasts are under review.
Benefiting from inflation linkage and deployment
TENT has clearly benefited from inflation linkages in its hydroelectric portfolio (equity, 41% of portfolio). TENT’s portfolio is based on nine run-of-the-river hydroelectric assets in Scotland and benefited from feed-in tariffs being raised by 13.4% in 2023. TENT’s forecasts are based on Office for Budget Responsibility estimates (3% for 2024–31 and 2.4% thereafter), so there is scope for valuation uplifts if RPI continues to surprise on the upside and outstrips rises in discount rates (portfolio discount rate assumptions were 5.6–8.3%, up from 5–8% at end FY22).
TENT’s battery energy storage systems (BESS; debt, 34.5% of portfolio) continue to roll out. The first asset, in Oldham, commenced operation in December 2022 and its second, in Gerrards Cross, is expected to be completed in late 2023 (£6.2m of lending drawn at end FY23 and a further £3.9 post balance sheet date). The remaining two assets (in Scotland and Wales) are expected to be started in summer 2023 and to be operational in 2024. TENT’s £40m revolving credit facility was undrawn at 31 March but will be used to fund this growth in FY24.
TENT still sees a healthy pipeline (£545m) of high-return investments (8.8%) in both debt and equity and so can still scale its business model by concentrating on higher-return subsegments of energy transition. Its targets include BESS (although in discussing the results, TENT did note that returns and the technology in BESS are maturing), onsite generation and low-carbon energy consumption. Emerging technologies such as green hydrogen and carbon capture are also being assessed.
Clearing 1.0x dividend cover by a 20% margin to 1.2x (including one-off listing costs 1.1x) is clearly a good result. TENT has set a target of a 5.5p dividend for 2024, which is flat on 2023, but given the 9% yield and continued attractive risk-adjusted yields in its pipeline, seem a sensible strategy. Given the long-term (92% contracted over 10 years) and inflation-protected (47% linked to inflation) nature of its income, TENT shares trade at an unwarranted discount to NAV in our view.
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Research: Healthcare
Ultimovacs has announced positive three-year data from the UV1-103 Phase I trial (n=30) assessing UV1 in combination with pembrolizumab for the treatment of malignant melanoma. Of the participants that agreed to long-term monitoring, an overall survival (OS) rate of 67% (18/27) was reported at three years. While we caution against direct read across, and acknowledge there are differences in study designs, we highlight that pembrolizumab showed an OS rate of 51% at three years in the registrational KEYNOTE-006 study. We also note that UV1-103 treats the same patient population as Ultimovacs’ INITIUM Phase II trial, and top-line results are expected in H223, representing a significant upcoming catalyst.