2024 April update
Last updated on
It’s been a year since I started this portfolio. The first post was exactly one year ago. Read more about what this is all about there.
The combined market capitalisation of the 12 companies I started with was £11,941.65 and is now £8,577.56. That’s a drop of 28%.
During the year, I added three more companies to the index, as I became aware of them: GOOD, ORIT and JLEN. The combined capitalisation of these new companies is now £1,010.99.
The combined capitalisation of the companies in the index as it stands today is £9,588.54.
The evolution of the index, with the addition of new companies and monthly rebalancing has closely followed the capitalisation of the 12 initial companies and stands at -27.46%.
What’s missing is the dividends, and these have been generous. Over the year, there have been approximately 5% dividends which brings the actual return to -19.41%.
So overall it’s been a horrible year for UK green energy companies. None of the companies in the original index have improved their valuations. Notwithstanding the terrible valuations, most of the companies have been able to maintain or even slightly raise their dividend.
The major exception to that has been GRID, which seems to not be doing so well and is forecasting distributions for the whole year. Its valuation dropped from £1.64 to £0.39 since last April. That’s a 76% drop! From what I can tell, they’re having trouble selling their energy storage in the short term, but they continue adding capacity.
Here is the market capitalisation of the index as of 19th of April 2024:
| Market cap (mil.) | Market ratio | |
|---|---|---|
| LON:ATOM | £26.57 | 0.28% |
| LON:BSIF | £602.03 | 6.28% |
| LON:CWR | £261.34 | 2.73% |
| LON:FSFL | £481.83 | 5.03% |
| LON:GOOD | £44.12 | 0.46% |
| LON:GRID | £220.99 | 2.30% |
| LON:GSF | £315.18 | 3.29% |
| LON:HEIT | £101.53 | 1.06% |
| LON:HGEN | £57.07 | 0.60% |
| LON:ITM | £317.08 | 3.31% |
| LON:JLEN | £582.15 | 6.07% |
| LON:NESF | £430.71 | 4.49% |
| LON:ORIT | £384.72 | 4.01% |
| LON:ROOF | £114.00 | 1.19% |
| LON:TRIG | £2,465.26 | 25.71% |
| LON:UKW | £3,183.97 | 33.21% |
| Total | £9,588.54 | 100.0% |
The current (very rough) composition of the index by investment type is: 44.71% wind, 27.64% solar, 17.33% battery, 6.58% hydrogen and 0.46% energy distribution.
I’ve calculated this by (very hastily) having a look at what the companies say they invest in. If a company says they invest in wind, solar and hydrogen for example, then they get an even share of 33% for each and I then weigh that with the company’s market cap.
And for comparison, here was the index two months ago on 23rd February 2024 (I usually update this quarterly but I was late last time):
| Market cap (mil.) | Market ratio | |
|---|---|---|
| LON:ATOM | £20.02 | 0.20% |
| LON:BSIF | £621.24 | 6.22% |
| LON:CWR | £324.21 | 3.25% |
| LON:FSFL | £519.59 | 5.20% |
| LON:GOOD | £52.83 | 0.53% |
| LON:GRID | £371.02 | 3.71% |
| LON:GSF | £349.26 | 3.50% |
| LON:HEIT | £89.15 | 0.89% |
| LON:HGEN | £61.51 | 0.62% |
| LON:ITM | £339.29 | 3.40% |
| LON:JLEN | £662.85 | 6.64% |
| LON:NESF | £444.30 | 4.45% |
| LON:ORIT | £459.85 | 4.60% |
| LON:ROOF | £105.60 | 1.06% |
| LON:TRIG | £2,484.34 | 24.87% |
| LON:UKW | £3,083.01 | 30.87% |
| Total | £9,988.06 | 100.0% |
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