RBC European Utils & Infra Morning Lightbulb

Research evidence excerpt

RBC European Utils & Infra Morning Lightbulb

becomes the largest electricity supplier in the market

with ~26% overall market share. As such, the 3 largest suppliers in the market now control ~75% of the

customer base.

GCP announces additional small AD disposal

GCP Infrastructure has announced the completion of an additional ~£3m disposal under its >£150m

disposal programme, which involves the sale of an anaerobic digestion (AD) project in Northern Ireland

at a valuation in line with latest reported NAV. Since the RCF was fully repaid by the earlier solar

refinancing announced last month, all proceeds from the disposal will be used to fund the share buyback

programme. (Company Announcement)

So what? GCP had already flagged this AD disposal was expected to complete imminently late last

month, with an additional £10m onshore wind disposal now expected in mid-July. While at the current

share price any excess cash will be committed to share buybacks, GCP’s share price discount to NAV

has narrowed in recent weeks to ~18%, while GCP’s capital allocation policy is that excess cash may be

allocated to reinvestment over buybacks when the discount to NAV narrows below 15%.

NESO plays down Coutinho claims

NESO has downplayed claims made by UK shadow energy secretary Claire Coutinho about its handling

of information and decision-making around network stability. Coutinho, the former energy secretary,

told parliament a whistleblower from within the system operator had contacted her with allegations

that “senior managers have ordered control room operators to hide information that shows that the

grid is not being run securely”. A NESO spokesperson stated that “All operational decisions are taken by