Sparks - SDCL Efficiency Income Trust

SDCL Energy Efficiency Income Trust’s (SEIT’s) portfolio delivered operational performance broadly in line with budget on an aggregated basis during H125. The trust completed the disposal of ON Energy for $7.6m at an 18.75% premium to its latest holding value. Management further commented that it will continue to progress other disposal processes to create liquidity and streamline the portfolio. The intended proceeds of additional disposals will be used to reduce SEIT’s drawings under its RCF, and, in due course, return capital to shareholders through share buybacks or a tender offer.

Primary Energy maintained strong performance across all five projects, benefiting from an improved customer credit rating following Nippon Steel’s acquisition of US Steel. North Lake received Ohio RPS approval for increased capacity certification, generating additional revenue at no incremental capex. PCI renewed its contract for five years, with a two-year extension option. RED-Rochester’s Cogen project concluded successfully, with Q1 performance boosted by higher loads from colder weather. Driva performed ahead of budget on an EBITDA basis in the period, through a combination of sales in its core business and new energy-as-a-service projects. Operational metrics improved, with increased biogas injection and reduced leakage. Conversely, Onyx underperformed budget due to site-specific challenges, including panel soiling and snow losses, with full-year EBITDA expected to fall slightly short despite robust deployment continuing. Oliva faced margin pressure from gas and electricity market volatility, though revisions to the management team’s hedging methodology showed a positive impact.

SEIT’s interim results for the period to 30 September 2025 are expected in early December.