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Multi-national utility company

Powering a sustainable future

1427553999

What is it?

A multi-national electricity and gas utility company at the forefront of the energy transition, primarily focused on transmission and distribution of energy.

Competitive advantage

This issuer operates a diversified portfolio of assets in the United Kingdom and the United States, playing a crucial role in the delivery of energy to millions of customers. It has demonstrated a robust commitment to sustainability and innovation in the energy and utilities sectors, through significant investments in renewable energy and modernisation of the electric grid. The company’s well-established presence in the regulated utility market should ensure a stable revenue stream. Furthermore, the issuer’s strategic investments in critical energy infrastructure, combined with its focus on sustainability and innovation, further bolsters the issuer’s revenue potential through government incentives and regulatory support. We believe the company is positioned favourably for long-term growth and stability, potentially bolstering its financials over time.

What factors led to a buy decision?

Our investment decisions are guided by a comprehensive, bottom-up evaluation of company valuations and fundamentals, alongside a thorough understanding of ESG and climate risks.1 We identified this issuer as being attractively valued, whilst benefitting from a solid financial foundation. In our view, the company’s credit and equity valuations appeared to undervalue its potential for revenue and cash flow growth, particularly when compared to its peers. In addition, we feel the company demonstrates a leading environmental strategy, which includes its efforts to reduce carbon emissions and adapt to climate risks. The management team’s clear vision and strategic direction reinforces our positive outlook on the company. Collectively, these factors underpin our conviction in this investment opportunity.

Key points

  • A robust commitment to sustainability and innovation in the energy sector
  • A stable revenue stream underpinned by strong regulatory relationships, strategic investments, and alignment with sustainability
  • In our view, attractively valued issuer and a solid financial foundation