Renewables investor VH Global Sustainable Energy Opportunities has recorded nearly a 9% increase in the net asset value (NAV) per share in the first half of 2022, compared to the previous six-month period.
NAV for the six-month period ending 30 June 2022 was 113.1p, an increase of 8.8% from 104.0p at 31 December 2021, driven by “strong operating performance” resulting in valuation increases within the portfolio, updated inflation assumptions and a weakening Sterling against the US Dollar, Australian Dollar and Brazilian Real.
VH Global, which is advised by Victory Hill Capital Advisors, recorded a NAV of £352.4m at 30 June 2022.
Profit before tax for the six-month period to 30 June 2022 was £32.4m and earnings per share for the period were 10.4p.
During the period, VH Global announced that six solar PV sites across five Brazilian states migrated from the construction to operational phase.
These sites represent approximately $13.7m (£11.3m) of the original $63m commitment and will be generating 18.7MWp.
All of the sites have contract lengths of 20 years and are inflation-linked.
The company also committed a further £28m for the acquisition of a second UK flexible power plant as part of the Company’s programme to support the UK’s energy transition to net zero.
The second site is located in County Durham and will consist of a 35MW high efficiency combined heat power with carbon capture and re-use plant.
Post period, the Company committed BRL800m (£125m) for the acquisition of a 198MW operating hydro power facility in Brazil.
The asset is already generating cash flows with the expected annual return to exceed the Company’s target total return of 10%.
In addition to this, the company has added three additional ready-to-build sites to the existing Australian solar PV programme amounting to £21.2m and 15MW in size.