HydrogenOne Capital Growth PLC on Thursday reported ‘positive progress’ in its latest year, as well as plans to exchange HH2E AG investment rights for equity.
The fund investing in clean hydrogen companies said its net asset value was 102.99 pence per share or £132.7 million at December 31, up 5.8% from 97.31p or £125.4 million at the end of 2022.
HydrogenOne also said its portfolio companies made ‘positive progress on revenue growth’, with total revenue more than doubling to £74.0 million.
However, Chair Simon Hogan expressed his disappointment that ‘the share price remains at a steep discount’ despite the NAV growth, as he had ‘ hoped to report an improved share price this year’.
The company did not declare a dividend for the year, as per usual, ‘as we continue to focus on growth investments’.
Also on Thursday, HydrogenOne announced an update from its German portfolio holding HH2E AG, a green hydrogen project developer.
The company has agreed to exchange investment rights in all six of HH2E’s green hydrogen project special purpose vehicles for HH2E equity, in a non-cash transaction. Its resulting equity share is unchanged at approximately 11%.
HydrogenOne explained that the changes will ‘streamline the HH2E business, ahead of upcoming external funding rounds to bring green hydrogen projects into production’. Additionally, the deal provides it with exposure to the Lubmin green hydrogen project, which is nearing a final investment decision.
Looking ahead, Hogan commented: ‘The outlook for the clean hydrogen sector remains positive and we believe that the portfolio can generate attractive returns over time.’
He continued: ‘There are considerable uncertainties on the near-term macro-economic outlook, and a challenging funding environment in private equity, which are affecting valuations across the listed funds sector.
‘Nevertheless, we remain confident that the company is investing in a sector with a favourable outlook and a substantial growth potential.’
HydrogenOne shares closed down 1.4% at 43.40 pence in London on Thursday.
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