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Discover how ENRG's pivot to full asset realisation aims to unlock value with an 8.8% yield and a -35.7% NAV discount.
This article covers information on VH Global Energy Infrastructure PLC.
LON:ENRGVH Global Energy Infrastructure (ENRG) has delivered a steady set of numbers while formally switching from “build and grow” to “harvest and return”. NAV per share edged down 0.9% to 102.28p, but total NAV return for the year was 5.72% thanks to dividends. The big strategic shift is now live: every asset is being readied for sale over up to three years, with proceeds to be returned to shareholders.
| Key metric (31 Dec 2025) | Result |
|---|---|
| Net Asset Value | £404.8 million |
| NAV per share | 102.28p (2024: 103.21p) |
| Share price (year-end) | 65.80p |
| Discount to NAV | -35.7% |
| Dividend per share (FY 2025) | 5.80p |
| Dividend yield (on 31 Dec price) | 8.8% |
| Dividend cover | 0.96x |
| Total leverage | 7.6% of NAV |
| Revenues contracted/inflation-linked | >90% |
| Operational share of portfolio | 87% (2024: 69%) |
| Ongoing charges ratio | 1.5% |
Shareholders approved ENRG’s asset realisation strategy in August 2025. The aim is simple: sell the entire portfolio in an orderly manner within up to three years and return the capital. The manager, Victory Hill, is incentivised via a time-based performance structure measured against the December 2024 Reference NAV (£408.5 million), with hurdles of 85% (Year 1), 90% (Year 2) and 100% (Year 3). Fees only crystallise if the whole portfolio is sold and shareholders receive at least 85% of the Reference NAV in net returns.
Post year-end, a B Share Scheme was approved on 18 March 2026 to make returning proceeds cleaner and faster as disposals complete.
ENRG paid 5.80p per share for 2025, in line with the target, equating to an 8.8% yield on the year-end share price. Coverage was 0.96x, the same as 2024. Management plans to continue quarterly dividends, but the size will naturally depend on the income profile as assets are sold down.
Leverage remains very conservative at 7.6% of NAV, giving flexibility during disposals. The portfolio’s revenue base is robust, with more than 90% contracted and inflation-linked.
NAV per share dipped to 102.28p, mainly reflecting dividends paid and valuation headwinds from lower third‑party Australian power price forecasts and reclassifying three Brazilian solar assets as ready-to-build. The weighted average discount rate rose to 8.57% (2024: 8.34%).
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At 31 December 2025 the shares traded at 65.80p, a -35.7% discount to NAV. Management’s view is that the listed trust format hasn’t allowed value recognition, hence the pivot to realisation. If execution is disciplined, that discount becomes the opportunity.
Translation: macro matters. The good news is the income base is largely contracted, and leverage is low. The caution is that realisation proceeds will still be influenced by discount rates, power prices and currency.
These aren’t just nice-to-haves; they help make the assets attractive to a wide buyer universe that increasingly prices decarbonisation and air quality benefits.
Positives first. The portfolio is now 87% operational, with high revenue contract coverage and very low leverage. Multiple sale processes are underway in markets where the manager reports strong buyer interest. The 5.80p dividend was delivered, and the B Share Scheme should streamline capital returns.
Now the caveats. Dividend cover remains below 1.0x, the NAV is sensitive to macro variables, and execution risk on disposals is real – timing, pricing and buyer due diligence all matter. Australia’s 2025 revenue mix and Brazil hydro’s lower output show how operating conditions can swing year-on-year, even if budgets are met or beaten.
Overall, the -35.7% discount to NAV is the headline. Management’s strategy is explicitly designed to close that gap by cashing out the embedded value. If the manager sells well – not fast for the sake of speed, but well – there is clear scope to improve shareholder outcomes from here.
For more detail, the Annual Report will be available at globalenergyinfrastructure.co.uk. AGM: 20 May 2026, 12:00 pm, London.
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