ENRG’s 2025 Results: steady NAV, chunky yield, and a pivot to full realisation
VH 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% |
From growth to harvest: how the asset realisation will work
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.
Sale processes and timelines by programme
- US terminal storage: sale process commenced early January 2026 after a strong 2025; advisers appointed and strong interest anticipated.
- Brazilian hydro: sale formally commenced January 2026; market backdrop remains robust.
- Australian solar PV with BESS: marketing started Q1 2026 for the 37 MW/60 MWh portfolio; early indicators suggest robust demand.
- UK flexible power with carbon capture and reuse (CCR): now fully operational under a 15-year PPA with Axpo and a CO2 offtake with Buse; to be marketed after ramp-up and handover from EPC; reverse enquiries received.
- Brazilian distributed solar: advisers appointed Q4 2025; non-binding offers began in Q1 2026; remaining three sites marketed as ready-to-build.
- Spain/Portugal/Sweden (solar and onshore wind): sale processes expected between late 2026 and early 2027 once further milestones are hit and hybridisation set-up is in place.
Operations: mostly positive, with a few moving parts
- US terminal storage: revenues rose 15.5% to US$28.5 million on higher throughput and ancillary services; zero injuries; facility debt upsized to US$30 million.
- Australia PV+BESS: programme completed and operational; revenues up 10.6% to A$7.1 million, but 2025 performance mixed due to lower volatility, weather and a >50% drop in green certificate prices. Price spikes up to A$20,300/MWh provided upside for the hybrid assets.
- Brazil distributed solar: 13.3 MWdc energised across three sites; revenues up 22% to BRL 29.0 million.
- Brazil hydro: output down 18.2% to 638,300 MWh and revenues down 9.5% to BRL 162.1 million due to lower average PPAs; still outperforming budget and benefitting from high power prices.
- UK flexible power with CCR: full operations in H2 2025; delivered GBP 3.2 million revenue while ramping, supplying baseload power and purified CO2.
- Iberia/Sweden: 10.3 MW Spanish solar asset reached mechanical completion in Q3 2025; a €29.7 million, 20-year project finance facility (50% LTV) supports build-out.
Dividends, cover and balance sheet strength
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 drivers, discount and sensitivities: what could move the dial
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%).
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.
Key valuation sensitivities (per share impact)
- Power prices ±10%: +5.30p / -5.83p
- Discount rates (DM ±0.5%, EM ±1.5%): -5.92p / +6.82p
- Inflation ±1%: +9.53p / -8.64p
- FX ±10%: +9.80p / -8.01p
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.
Sustainability highlights with real-world impact
- Clean energy generated: 783,995 MWh (equivalent to powering 290,368 UK homes).
- GHG emissions avoided: 232,866 tonnes CO2e; SOx displaced: 26,823 tonnes.
- UK flexible power with CCR: 3,231 tonnes of CO2 captured for reuse.
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.
What to watch next
- US terminal storage and Brazilian hydro sale processes are live – price discovery here will set the tone.
- Australian PV+BESS marketing in Q1 2026 – demand for operational, hybrid portfolios is a key litmus test.
- UK flexible power with CCR – completion of ramp-up and EPC handover in H1 2026, plus any new revenue streams, could boost value.
- Brazil distributed solar – non-binding offers in; watch for execution on the ready-to-build tranche.
- Iberia/Sweden – milestone progress through 2026 ahead of sales from late 2026/early 2027.
- Dividends – quarterly payments continue, but expect recalibration as assets exit.
My take: disciplined execution could unlock the discount
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.
