Interim Report and Unaudited Financial Statements
Summary by AI BETAClose X
Riverstone Credit Opportunities Income Plc
Interim Report and Unaudited Interim Condensed Financial Statements
For the six months ended 30 June 2026
At a General Meeting held on 22 May 2024, Riverstone Credit Opportunities Income Plc ("RCOI" or the "Company") adopted a revised Investment Objective in order to facilitate a Managed Wind-Down of the Company.
The Company plans to realise the Company's assets on a timely basis with the goal of making returns of cash to holders of Ordinary Shares as soon as practicable.
Company number: 11874946
All capitalised terms are defined in the list of defined terms below unless separately defined.
Riverstone Credit Opportunities Income PLC
Riverstone Credit Opportunities Income Plc is an externally managed closed-ended investment company listed on the Main Market of the London Stock Exchange.
The Company's Ordinary Shares were admitted to the Specialist Fund Segment of the London Stock Exchange plc's Main Market and incorporated and registered on 11 March 2019 in England and Wales with an unlimited life.
At the Annual General Meeting ("AGM") held on 22 May 2024, Riverstone Credit Opportunities Income Plc adopted the Wind-Down Investment Policy and entered into a Managed Wind-Down.
The Company's investment objective and investment policy is now to realise the Company's assets on a timely basis with the objective of making returns of cash to holders of Ordinary Shares as soon as practicable.
INVESTMENT MANAGER
The Company's Investment Manager is Riverstone Investment Group LLC, which is controlled by affiliates of Riverstone Holdings LLC ("Riverstone").
On 31 December 2023, Riverstone entered into a sub-management agreement with Breakwall Capital LP ("Breakwall" or "Sub-Manager") for all the credit vehicles managed by Riverstone.
Riverstone was founded in 2000 and is currently one of the world's largest and most experienced investment firms focused on energy, power, infrastructure and decarbonisation. The Firm has raised over $45 billion of capital and committed approximately $200 billion to over 200+ investments in North America, South America, Europe, Africa, Asia and Australia. Headquartered in New York, Riverstone has built a global platform with additional offices located in Amsterdam and Mexico City.
The registered office of the Company is 5th Floor, 20 Fenchurch Street, London, England, EC3M 3BY.
Key Financials
|
|
|
|
2026 |
2025 |
|
NAV as at 30 June 2026/ 31 December 2025 |
|
|
$33.12m |
$43.81m |
|
NAV per Share as at 30 June 2026/ 31 December 2025 |
|
|
$0.90 |
$0.89 |
|
|
|
|
|
|
|
Market capitalisation as at 30 June 2026/ 31 December 2025 |
|
|
$27.61m |
$34.84m |
|
Share price at 30 June 2026/ 31 December 2025 |
|
|
$0.75 |
$0.71 |
|
|
|
|
|
|
|
Total comprehensive income for period ended 30 June 2026/ 30 June 2025 |
|
|
$0.9m |
($0.9)m |
|
EPS for the period ended 30 June 2026/ 30 June 2025 |
|
|
2.25 cents |
(1.35) cents |
|
|
|
|
|
|
|
Distribution per share with respect to the period ended 30 June 2026/ 30 June 2025 |
|
|
2.11 cents |
1.58 cents |
|
|
|
|
|
|
|
Realisations as at 30 June 2026/31 December 2025 |
|
|
$50.6m |
$39.8m |
|
Shares redeemed as at 30 June 2026/31 December 2025 |
|
|
53.9m |
41.7m |
Highlights
· In March 2026, by way of Compulsory Redemption, the Company redeemed 12,134,802 Ordinary Shares equal to $0.89 per share, representing approximately 25 per cent. of the Ordinary Shares.
· The NAV at 30 June 2026 was $0.90 per share (31 December 2025: $0.89).
· Distribution of 2.11 cents per share (30 June 2025: 1.58 cents per share) approved with respect to the period ended 30 June 2026
INVESTMENT OBJECTIVE AND POLICY
Following the outcome of the vote held at the AGM on 22 May 2024, the Company adopted a revised investment objective and investment policy in order to facilitate a Managed Wind-Down of the Company. The revised Investment Policy is now "to realise the Company's assets on a timely basis with the aim of making progressive returns of cash to holders of Ordinary Shares as soon as practicable" (the "Wind-Down Investment Policy").
The Investment Manager is actively seeking exit opportunities to realise the loans comprising the Company's portfolio and returning the resulting proceeds to Shareholders. The Investment Manager may dispose of loans in the secondary market.
The precise mechanism for the return of cash to holders of Ordinary Shares in the Managed Wind-Down is at the discretion of the Board, but includes a combination of capital distributions, tender offers, mandatory share redemptions and share repurchases. The return of proceeds to Shareholders may require further Shareholder approvals, depending on the methods used. Since entering Managed Wind-Down, the Company has returned approximately $50.6 million of capital to Shareholders, reflecting the redemption of 53,873,878 Ordinary Shares.
The Company will continue to carry on its investment business with a view to spreading risk during the Managed Wind-Down.
Prior to the 2024 AGM, the Company's investment objective was to lend to companies working to drive change and deliver solutions across the energy sector, spanning renewable as well as conventional sources, with a primary focus on infrastructure assets, by building a portfolio that generated an attractive and risk adjusted return for investors, as well as drive a positive action with regard to climate change by structuring loans as Green Loans or Sustainability-Linked Loans.
Further details on the Company's previous investment strategy, investment restrictions and distribution policy are outlined in the Company's Annual Report for the year ended 31 December 2025.
Chairman's Statement
Overview
I am pleased to present our Interim Report for the period ending 30 June 2026, during which the Company has achieved important milestones and also continued to make good progress on the Managed Wind-Down approved by shareholders in May 2024. We are committed to maximising shareholder value through this Managed Wind-Down process, and on behalf of the Board, I would like to thank our shareholders for their ongoing support.
Since entering the Managed Wind-Down, the Company has completed three compulsory redemptions. On 9 September 2024, the Company redeemed (on a pro rata basis) 22,648,201 Ordinary Shares at a redemption price of US$ 1.017 per Ordinary Share. On 27 June 2025, the Company redeemed (on a pro rata basis) 19,090,875 Ordinary Shares at a redemption price of US$0.88 per Ordinary Share. The Ordinary Shares redeemed were equal to approximately 28 per cent. of the Company's Ordinary Shares in issue as at the Redemption Date. On 30 March 2026, the Company redeemed (on a pro rata basis) 12,134,802 Ordinary Shares at a redemption price of US$0.89 per Ordinary Share. In total, $50.6 million has been returned to Shareholders from these redemptions. Following the third redemption, the Company has 36,931,359 Ordinary Shares remaining in issue. Since the adoption of the Managed Wind-Down Investment Policy, the Company has now redeemed approximately 59 per cent. of the Company's Ordinary Shares.
Operationally, we continue to be pleased with the financial performance of the Company's portfolio as well as the beneficial impact its loans are having on the journey towards greater environmental sustainability in global energy infrastructure. During the first half of 2026, the Company's performance improved slightly from 2025 and posted solid earnings for the first half of the year. The Company has now delivered a NAV total return of 36.5% to investors since inception in May 2019 and 43.7 cents of dividends paid.
The Company will continue to focus on the realisation of the Company's remaining investments and the prompt return of capital to our shareholders.
Key Portfolio Developments
As at 30 June 2026, RCOI's NAV per share is $0.90 (31 December 2025: $0.89).
There was one successful realisation during the first half of 2026, Caliber.
On 7 January 2026, Caliber's senior secured first lien loan was repaid resulting in cash proceeds to the Company of $0.9 million. On 12 June 2026, the remaining escrow was repaid resulting in cash proceeds to the Company.
Performance
RCOI has executed 25 direct investments and participated in two secondary investments since inception. Cumulatively, RCOI has invested $253 million of capital since the IPO in May 2019. The Company has now realised a total of 24 investments at a gross realised amount of $257.9 million, delivering an average gross MOIC of 1.20x (gross IRR of 15.8 per cent.) and net MOIC of 1.12x (net IRR of 12.0 per cent.).
The Company reported a profit of $0.9 million for the period ending 30 June 2026, resulting from changes in the portfolio valuation offset by income received from the investment portfolio. The Company paid distributions of 1.86 cents per share to investors in the first half of 2026.
Outlook
We are pleased with the ongoing progress of the Company's Managed Wind Down Strategy with one successful realisation during the first half of 2026 reducing the number of our remaining investments to three. In total, since the adoption of the new Wind Down strategy in May 2024, the Company has redeemed approximately 59 per cent. of the Company's shares in issue. We remain focused on continuing to maximise value for shareholders and promptly returning capital as we continue to progress this strategy. We note that as of 31 July 2026, the Company and its SPVs had an unencumbered cash equivalents position of approximately $2.8 million. The Board look forward to providing further updates on the remaining investments in due course.
Reuben Jeffery, III
Chairman
12 August 2026
INVESTMENT MANAGER'S REPORT
ABOUT THE INVESTMENT MANAGER
Appointed in May 2019, the Investment Manager, an affiliate of Riverstone, seeks to generate consistent shareholder returns predominantly in the form of income distributions principally by making Green and Sustainability-Linked, senior secured loans to energy transition businesses. Loans are classified as Green Loans when they support environmentally sustainable economic activity and Sustainability-Linked Loans when they contain sustainability performance targets or other equivalent metrics to be monitored. RCOI has participated in loans to companies working to drive change and deliver better solutions across the energy sector, spanning renewable as well as conventional energy, with a primary focus on infrastructure assets. The Company's aim was to build a portfolio that generates an attractive and consistent risk-adjusted return for investors, as well as drive positive impact regarding climate change by structuring loans as Green Loans or Sustainability-Linked Loans.
On 31 December 2023, Riverstone Holdings LLC and their affiliate Riverstone Investment Group (collectively, "Riverstone") entered into an agreement with Breakwall Capital LP ("Breakwall") to provide sub-management services (the "Sub-Management Agreement") for all credit vehicles managed by Riverstone, including RCOI (the "Existing Credit Vehicles"). Breakwall is a newly formed independent asset-management firm regulated by the SEC as a Registered Investment Advisor, owned and operated by the former Riverstone Credit Partners team. Services provided by Breakwall commenced on 2 January 2024.
Under the arrangement, Riverstone has remained the manager of RCOI on the terms of RCOI's existing management agreement and all aspects of the ongoing management of the Company, including the day-to-day investment team, have remained consistent with current practices. There was no increase in fees payable by RCOI as a result of the modified arrangements. The Board of RCOI was involved in establishing the Sub-Management Agreement and are confident that the structure of Riverstone as manager and Breakwall as the sub-manager will continue to deliver strong returns for shareholders during this period of Managed Wind-Down.
INVESTMENT PORTFOLIO SUMMARY
As of 30 June 2026, the Company holds a portfolio of investments in three companies across energy infrastructure & infrastructure services as detailed below.
In the descriptions that follow, yield to maturity is inclusive of all upfront fees, original issue discounts, drawn spreads and prepayment penalties through the stated maturity of the loan. Most loans have incentives to be called early. A portion of the loans have a "payment-in-kind" feature for drawn coupons for a limited time period. Similarly, some of the loans have a "delayed-draw" feature that allows the borrower to call capital over time, but always with a hard deadline. Loans that are committed are loans with signed definitive documentation where a structuring fee and/or original issue discount have been earned and the Company earns an undrawn spread. Loans that are invested are signed with definitive documentation and, where a structuring fee and/or original issue discount have been earned, the Company has funded the loan to the Borrower and the Company is earning a drawn coupon.
The Investment Manager expects that every loan it has made will advance the cause of energy transition one way or another. For new green energy infrastructure, or conversion of older assets to a more sustainable use, we typically issue Green Loans. For existing hydrocarbon related businesses, we typically issue Sustainability-Linked Loans that tie loan economics to meeting specific sustainability performance targets. Both structures are based on LSTA guidelines and are subject to third party independent opinion from Sustainable Fitch, a division of Fitch Group focused on ESG.
Geostore Holdings (fka Harland & Wolff) - In March 2022, RCOI participated in a $35.0 million first lien term loan to Harland & Wolff ("H&W"), an infrastructure operator engaged in the development and operation of strategic maritime assets across the United Kingdom. This term loan was subsequently upsized to $140 million. At the initial closing, RCOI committed $11.8 million, which was subsequently upsized to $14.8 million. As of 30 June 2026, $10.8 million remains invested, reflecting 33.0 per cent. of RCOI's overall commitments.
On 24 September 2024, Harland & Wolff Group Holdings PLC entered Administration because of certain contract underperformance, mismanagement and liquidity shortfall. At this time, H&W's various subsidiaries were not subject to the insolvency process and continued to trade. On 19 December 2024, Navantia UK agreed to acquire H&W's four sites in Belfast, Appledore, Arnish, and Methil, and this transaction subsequently closed on 27 January 2025 (the "Navantia Transaction"). Following the Navantia Transaction, the remaining H&W subsidiaries entered Administration, including Infrastrata UK. In 2025, RCOI received ~$4.0 million from the Navantia Transaction.
During 2026, we expect to receive the final distribution from the Navantia Transaction, which we expect to be c. $1.2 million to RCOI. RCOI has so far received c. $0.5 million of this amount in the first half of 2026.
On 15 October 2025, Geostore Holdings LP, a wholly-owned subsidiary of the Riverstone Funds, completed the acquisition of Infrastrata UK via Administration. Infrastrata UK owns 100% of the Islandmagee Energy Limited ("IMEL") Gas Storage Project. RCOI retains an interest of c. 14.8% in Geostore Holdings LP.
Seawolf Water Resources - In September 2022, RCOI made a secondary investment in a stapled bundle of private securities in Seawolf Water Resources ("Seawolf"), a privately held water infrastructure services company with operations primarily in Loving County, Texas and southern New Mexico. The investment includes a Sustainability-Linked first lien term loan along with preferred stock and common equity, collectively purchased at a significant discount to market value. The loan portion of the investment was due in March 2026 and was purchased at an estimated all-in yield to
maturity of 10.6 per cent. to RCOI. The loan entered forbearance during the period but is expected to be repaid during the second half of 2026. The preferred stock and common equity are perpetual in nature but benefit from excess cash returned to the shareholders from time to time.
Across the term loan, preferred stock, and common equity, RCOI committed a total of $9.0 million, which has subsequently been reduced to $8.3 million via repurchases of preferred stock by the Company. This reflects 25.2 per cent. of RCOI's overall commitments as of 30 June 2026.
Hoover Circular Solutions - In November 2022, RCOI participated in a $160 million Sustainability-Linked first lien term loan to Hoover CS, a leading provider of sustainable packaging and fleet management solutions, that is paving the way for customers across the chemical, refining and general industrial-end markets to move away from single-use containers. Sustainable Fitch provided a Second Party Opinion ("SPO") on the loan. The loan is due in November 2026 and was made at an estimated all-in yield to maturity of 10.6 per cent.
At closing, RCOI committed $13.7 million. As of 30 June 2026, the full $13.7 million remains invested, reflecting 41.8 per cent. of RCOI's overall commitments.
BUSINESS REVIEW
MANAGED WIND-DOWN
Following the AGM on 22 May 2024 the Company adopted a wind-down investment policy. Details of the adoption of the Managed Wind-Down are as follows:
· The Company's investment objective and investment policy is now to realise the Company's assets on a timely basis with the aim of making progressive returns of cash without reinvesting any realised cash to holders of Ordinary Shares as soon as practicable.
· The Investment Manager is actively seeking exit opportunities to realise the loans comprising the Company's portfolio by holding them until they come to term and returning the resulting proceeds to Shareholders. The Investment Manager may dispose of loans in the secondary market.
· The Company will maintain its listing on the Specialist Fund Segment and continue to conduct its affairs (including as regards payment of dividends) so as to qualify as an investment trust for the purposes of section 1158 of the Corporation Tax Act 2010, in each case for as long as the Board believes such status to be practicable and cost-effective for Shareholders.
· The unaudited net asset value of the Company will continue to be calculated on a quarterly basis in accordance with the Company's accounting policies per the notes to the financial statements and will be published through a Regulatory News Service, although the Board would keep this net asset value reporting policy under review in light of the diminishing size of the Company's portfolio during the course of the Managed Wind-Down.
· The precise mechanism for the return of cash to holders of Ordinary Shares in a Managed Wind-Down will be at the discretion of the Board, but will include a combination of capital distributions, tender offers, mandatory share redemptions and share buybacks. The return of proceeds to Shareholders may require further Shareholder approvals, depending on the methods used.
GOING CONCERN
As of the date of the report, the Directors are required to consider whether they have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. Following the AGM held on 22 May 2024 at which Shareholders voted in favour of a change in the Company's Investment Policy to Wind-Down Investment policy.
The Company's investment objective and Wind-Down Investment Policy is "to realise the Company's assets on a timely basis with the aim of making progressive returns of cash to holders of Ordinary Shares as soon as practicable". The Investment Manager is actively seeking exit opportunities to realise the loans comprising the Company's portfolio and returning the resulting proceeds to Shareholders. The Company is therefore preparing its financial statements on a basis other than going concern due to the Company being in a Managed Wind-Down.
The Company will continue to carry on its investment business during the Managed Wind-Down with the expectation of realising the Company's assets and returning of capital to its Shareholders.
The Directors consider that the change to the Company's objectives and Investment Policy, are in the best interests of Shareholders as a whole.
As of 30 June 2026, the Company has sufficient cash held in the SPVs reflected in the value of the Company's investments in the SPVs. As of the date of the financial statements, the Company and its SPVs have $2.8m cash and cash equivalents available. The Company's and its SPVs current cash will be able to meet the near-term current liabilities when come due.
Whilst the Directors are satisfied that the Company has adequate resources to continue in operation throughout the wind down period and will be able to meet all of its liabilities as they fall due, given the Company is now in Managed Wind-Down, the Directors considered it to be appropriate to adopt the basis other than going concern in preparing the financial statements. There were no material changes in the valuation of investments held at fair value as a result of ceasing to apply the going concern basis. All of the balance sheet items have been recognised on a realisation basis, which is not materially different from the IFRS carrying amount. The Directors and the Investment Manager have made the appropriate provisions in order to bring about an orderly wind-down of the Company and its operations.
As of 30 June 2026, the weighted average remaining contractual tenor of the loans in the Company's portfolio is approximately one year, with equity positions also held in the portfolio that may be realised past 12 months from the date of this report. The Investment Manager is actively seeking to realise the loans comprising the Company's portfolio by holding them until they come to term or dispose in the secondary market where it considers this to be in the best interests of the Company. The Company in its best efforts, intends to realise and return to shareholders all proceeds in respect to its investment portfolio by the first quarter of 2027.
On 30 March 2026, the Company redeemed 12,134,802 Ordinary Shares, which was approximately 25 per cent. of the Company's Ordinary Shares by way of a Compulsory Redemption of Ordinary Shares. The Directors will make further announcements on the progress of the Managed Wind-Down strategy and the return of cash to Shareholders in due course.
PRINCIPAL RISKS AND UNCERTAINTIES
Under the FCA's Disclosure Guidance and Transparency Rules, the Directors are required to identify those material risks to which the Company is exposed and take appropriate steps to mitigate those risks. Risks relating to the Company are disclosed in the Company's prospectus which is available on the Company's website https://www.riverstonecoi.com.
The Company's assets consist of investments, through SPVs, within the global energy industry, with a particular focus on opportunities in the global E&P and midstream energy sub-sectors. Its principal risks are therefore related to market conditions in the energy sector in general, but also the particular circumstances of the businesses in which it is invested.
The Investment Manager seeks to mitigate these risks through active asset management initiatives.
The Board thoroughly considers the process for identifying, evaluating and managing any significant and emerging risks faced by the Company on an ongoing basis and has performed a robust assessment of those risks, which are reported and discussed at Board meetings.
The Board ensures that effective controls are in place to mitigate these risks and that a satisfactory compliance regime exists to ensure all applicable local and international laws and regulations are upheld.
For each material risk, the likelihood and consequences are identified, management controls and frequency of monitoring are confirmed and results reported and discussed at the quarterly Board meetings.
The key areas of risk faced by the Company and mitigating factors are summarised below:
1. The Ordinary Shares may trade at a discount to NAV per Share for reasons including but not limited to market conditions, liquidity concerns and actual or expected Company performance. In its efforts to mitigate this risk, the Investment Manager closely monitors and identifies the reasons for significant fluctuations, and considers the Company's share repurchase program when applicable and in the interests of Shareholders. As such, there can be no guarantee that attempts to mitigate such discount will be successful or that the use of discount control mechanisms will be possible, advisable or adopted by the Company.
2. Investment decisions of the Investment Manager will depend upon the ability of its employees and agents to gather relevant information. The Company would continue to carry on its investment business during the Managed Wind-Down.
3. The Company's Investment objective and Wind-Down Investment Policy is to "realise the Company's assets on a timely basis with the goal of making returns of cash to holders of Ordinary Shares as soon as practicable." The Investment Manager will manage current investments in accordance with the Investment Policy, market conditions and the economic environment. To mitigate the risk of realising investments not indicative of the fair value, the Company's Investment Policy and investment restrictions enable the Company to realise the loans comprising the Company's portfolio by holding them until they come to term and returning the resulting proceeds to Shareholders, with the precise mechanism for the return of cash to holders of Ordinary Shares in the Managed Wind-Down at the discretion of the Board.
4. The valuations used to calculate the NAV on a quarterly basis will be based on the Investment Manager's unaudited estimated fair market values of the Company's investments and may be based on estimates which could be inaccurate. To mitigate this risk, the Investment Manager has an extensive valuation policy and also has engaged the independent valuation services of Houlihan Lokey on a quarterly basis.
5. In today's global technological environment, the Company, its investments and its engaged service providers are subject to risks associated with cyber security. The effective operation of the Investment Manager and the businesses of Borrowers are likely to be highly dependent on the availability and operation of complex information and technological systems. To mitigate this risk, the Audit and Risk Committee Chairman monitors cyber security risk and best practices. Cyber security due diligence and ongoing monitoring is performed on each potential and current borrower.
6. The Company may be exposed to fluctuations and volatility in commodity prices through its investments, and adverse changes in global supply and demand and prices for such commodities may adversely affect the business, results of operations, and financial condition of the Company. To mitigate this risk, the Investment Manager has created a diversified portfolio across various energy subsectors, commodity exposures, technologies and end-markets to provide natural synergies that aim to enhance the overall stability of the portfolio.
7. The Company has only lent to Borrowers in the global energy sector and such single industry concentration could affect the Company's ability to generate returns. Adverse market conditions in the energy sector may delay or prevent the Company from realising investments. To mitigate this risk, the Investment Manager has created a diversified portfolio across various energy subsectors, commodity exposures, technologies and end-markets to provide natural synergies that aim to enhance the overall stability of the portfolio.
8. The performance of the Company may be affected by changes to interest rates and credit spreads. To mitigate this risk, the Investment Manager assesses credit risk and interest rate risk on an ongoing basis and closely monitors each investment with the assistance of each respective management team and the engaged service providers.
9. The Company relies on a third-party provider for the key operational tasks of the Company. The failure of any service provider to carry out their duty may have a detrimental effect on
the operation of the Company. To mitigate these risks the Board will review the internal control reports and consider business continuity arrangements of the Company.
The principal risks outlined above remain the most likely to affect the Company in the second half of the year
Directors' Responsibilities Statement
The Directors are responsible for preparing this Interim Report in accordance with applicable law and regulations.
The Directors confirm that to the best of their knowledge:
· The unaudited interim condensed financial statements have been prepared in accordance with UK-adopted IAS 34 Interim Financial Reporting; and
· The Chairman's Statement, Investment Manager's Report and the notes to the condensed financial statements include a fair review of the information required by:
i. DTR 4.2.7R of the Disclosure Guidance and Transparency Rules, being an indication of important events that have occurred during the period and their impact on the unaudited interim condensed financial statements; and a description of the principal risks and uncertainties for the remaining six months of the year; and
ii. DTR 4.2.8R of the Disclosure Guidance and Transparency Rules, being related party transactions that have taken place in the period and that have materially affected the financial position and performance of the Company during that period.
· For the reasons stated in the Business Review and Note 2, the financial statements have not been prepared on a going concern basis.
On behalf of the Board
Reuben Jeffery, III
Chairman
12 August 2026
Condensed Statement of Financial Position
As at 30 June 2026 (Unaudited)
|
|
|
30 June 2026 |
31 December 2025 |
|
|
Note |
$'000 |
$'000 |
|
|
|
|
|
|
Current assets |
|
|
|
|
Investments at fair value through profit or loss |
4 |
32,089 |
43,949 |
|
Trade and other receivables |
6 |
166 |
313 |
|
Cash and cash equivalents |
|
1,455 |
330 |
|
|
|
33,710 |
44,592 |
|
Current liabilities |
|
|
|
|
Trade and other payables |
7 |
(586) |
(779) |
|
|
|
|
|
|
Net current assets |
|
33,124 |
43,813 |
|
|
|
|
|
|
Net assets |
|
33,124 |
43,813 |
|
|
|
|
|
|
Equity |
|
|
|
|
Share capital |
8 |
369 |
491 |
|
Capital redemption reserve |
8 |
631 |
509 |
|
Other distributable reserves |
8 |
31,288 |
42,940 |
|
Retained earnings/(losses) |
|
836 |
(127) |
|
Total Shareholders' funds |
|
33,124 |
43,813 |
|
|
|
|
|
|
Number of Shares in issue at period/year end |
|
36,931,359 |
49,066,161 |
|
|
|
|
|
|
Net assets per share (cents) |
12 |
89.69 |
89.29 |
The interim condensed financial statements were approved and authorised for issue by the Board of Directors on 12 August 2026 and signed on its behalf by:
Reuben Jeffery, III Emma Davies
Chairman Director
The accompanying notes below form an integral part of these interim condensed financial statements.
Condensed Statement of Comprehensive Income
For the six months ended 30 June 2026 (Unaudited)
|
|
|
For the six months ended |
For the six months ended |
||||
|
|
Note |
Revenue |
Capital |
Total |
Revenue |
Capital |
Total |
|
|
|
$'000 |
$'000 |
$'000 |
$'000 |
$'000 |
$'000 |
|
Investment gain/(loss) |
|
|
|
|
|
|
|
|
Change in fair value of investments at fair value through profit or loss |
4 |
- |
248 |
248 |
- |
(2,541) |
(2,541) |
|
|
|
- |
248 |
248 |
- |
(2,541) |
(2,541) |
|
Income |
|
|
|
|
|
|
|
|
Investment income |
4 |
1,338 |
- |
1,338 |
2,377 |
- |
2,377 |
|
|
|
1,338 |
- |
1,338 |
2,377 |
- |
2,377 |
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
|
|
|
Directors' fees and expenses |
|
(86) |
- |
(86) |
(83) |
- |
(83) |
|
Other operating expenses |
|
(531) |
- |
(531) |
(624) |
- |
(624) |
|
Liquidation expenses |
|
(40) |
- |
(40) |
- |
- |
- |
|
Profit share |
10 |
- |
- |
- |
(50) |
- |
(50) |
|
Total expenses |
|
(657) |
- |
(657) |
(757) |
- |
(757) |
|
|
|
|
|
|
|
|
|
|
Operating profit/(loss) for the period |
|
681 |
248 |
929 |
1,620 |
(2,541) |
(921) |
|
|
|
|
|
|
|
|
|
|
Finance income |
|
|
|
|
|
|
|
|
Interest income |
|
34 |
- |
34 |
4 |
- |
4 |
|
Total finance income |
|
34 |
- |
34 |
4 |
- |
4 |
|
|
|
|
|
|
|
|
|
|
Profit/(loss) for the period before tax |
|
715 |
248 |
963 |
1,624 |
(2,541) |
(917) |
|
|
|
|
|
|
|
|
|
|
Tax |
11 |
- |
- |
- |
- |
- |
- |
|
|
|
|
|
|
|
|
|
|
Profit/(loss) for the period after tax |
|
715 |
248 |
963 |
1,624 |
(2,541) |
(917) |
|
|
|
|
|
|
|
|
|
|
Profit/(loss) and total comprehensive income/(loss) for the period attributable to the Shareholders of the Company |
|
715 |
248 |
963 |
1,624 |
(2,541) |
(917) |
|
|
|
|
|
|
|
|
|
|
Earnings/(loss) per share |
|
|
|
|
|
|
|
|
Basic and diluted earnings/(loss) per Share (cents) |
12 |
1.67 |
0.58 |
2.25 |
2.40 |
(3.75) |
(1.35) |
The 'Total' column of this statement is the profit and loss account of the Company and the 'Revenue' and 'Capital' columns represent supplementary information prepared under guidance issued by the Association of Investment Companies. Profit / (loss) for the period after tax also represents Total Comprehensive Income.
The accompanying notes below form an integral part of these interim condensed financial statements.
Condensed Statement of Changes in Equity
For the six months ended 30 June 2026 (Unaudited)
|
For the six months ended |
|
Share capital |
Capital redemption reserve |
Other distributable reserves |
Retained earnings |
Total |
|
|
Note |
$'000 |
$'000 |
$'000 |
$'000 |
$'000 |
|
|
|
|
|
|
|
|
|
Opening net assets attributable to Shareholders |
|
491 |
509 |
42,940 |
(127) |
43,813 |
|
Share redemption |
|
(122) |
122 |
(10,830) |
- |
(10,830) |
|
Total comprehensive income for the period |
|
- |
- |
- |
963 |
963 |
|
Distributions paid in the period |
13 |
- |
- |
(822) |
- |
(822) |
|
|
|
|
|
|
|
|
|
Closing net assets attributable to Shareholders |
|
369 |
631 |
31,288 |
836 |
33,124 |
The Company's total distributable reserves comprise its other distributable reserve and retained earnings. The total amount of reserves that were distributable as at 30 June 2026 is $32.1m
|
|
|
Share capital |
Capital redemption reserve |
Other distributable reserves |
Retained earnings |
Total |
||||
|
For the six months ended 30 June 2025 |
Note |
$'000 |
$'000 |
$'000 |
$'000 |
$'000 |
||||
|
|
|
|
|
|
|
|
||||
|
Opening net assets attributable to Shareholders |
|
682 |
318 |
61,795 |
(241) |
62,554 |
||||
|
Share redemption |
|
(191) |
191 |
(16,800) |
- |
(16,800) |
||||
|
Total comprehensive loss for the period |
|
- |
- |
- |
(917) |
(917) |
||||
|
Distributions paid in the period |
13 |
- |
- |
(545) |
- |
(545) |
||||
|
|
|
|
|
|
|
|
||||
|
Closing net assets attributable to Shareholders |
|
491 |
509 |
44,450 |
(1,158) |
44,292 |
||||
|
|
|
|
|
|
|
|
||||
The Company's total distributable reserves comprise its other distributable reserve and retained earnings. The total amount of reserves that were distributable as at 30 June 2025 is $43.3m
The accompanying notes below form an integral part of these interim condensed financial statements.
Condensed Statement of Cash Flows
For the six months ended 30 June 2026 (Unaudited)
|
|
Note |
For the six months ended |
For the six months ended |
|
|
|
$'000 |
$'000 |
|
|
|
|
|
|
Cash flows from operating activities |
|
|
|
|
Profit/(loss) for the period before tax |
|
963 |
(917) |
|
|
|
|
|
|
Adjustments for non-cash transactions in profit for the period before tax: |
|
|
|
|
Interest Income |
|
(34) |
(4) |
|
Movement in fair value of investments |
4 |
(248) |
2,541 |
|
Investment income |
4 |
(1,338) |
(2,377) |
|
Adjustments for statement of financial position movement: |
|
|
|
|
Movement in payables |
|
(193) |
104 |
|
Movement in receivables |
|
152 |
(67) |
|
|
|
|
|
|
Bank interest received in cash |
|
29 |
5 |
|
Loan interest received |
4 |
2,508 |
661 |
|
Dividends received |
|
138 |
380 |
|
Net cash generated from operating activities |
|
1,977 |
326 |
|
|
|
|
|
|
Cash flows from investing activities |
|
|
|
|
Investment proceeds |
4 |
10,800 |
16,800 |
|
Net cash generated from investing activities |
|
10,800 |
16,800 |
|
|
|
|
|
|
Cash flows from financing activities |
|
|
|
|
Distributions paid |
13 |
(822) |
(545) |
|
Repurchase and cancellation of share capital |
|
(10,830) |
- |
|
Net cash used in financing activities |
|
(11,652) |
(545) |
|
|
|
|
|
|
Net movement in cash and cash equivalents during the period |
|
1,125 |
16,581 |
|
Cash and cash equivalents at the beginning of the period |
|
330 |
328 |
|
Cash and cash equivalents at the end of the period |
|
1,455 |
16,909 |
The accompanying notes below form an integral part of these interim condensed financial statements.
Notes to the Unaudited Interim Condensed Financial Statements
For the six months ended 30 June 2026
1. General Information
The Company was incorporated and registered in England and Wales on 11 March 2019 with registered number 11874946 as a public company limited by shares under the Companies Act 2006
(the ''Act''). The principal legislation under which the Company operates is the Act. The Directors intend, at all times, to conduct the affairs of the Company so as to enable it to qualify as an investment trust for the purposes of section 1158 of the Corporation Tax Act 2010, as amended.
2. Basis of preparation
The condensed financial statements have been prepared in accordance with the provisions of the Companies Act 2006, with UK-adopted International Accounting Standards ("UK-adopted IAS") 34 Interim Financial Reporting, and the Disclosure Guidance and Transparency Rules of the United Kingdom's Financial Conduct Authority. Where presentational guidance set out in the AIC SORP, 2022 edition, is consistent with the requirements of UK-adopted IAS, the Directors have sought to prepare the condensed financial statements on a basis compliant with the recommendations of the AIC SORP. In particular, supplementary information which analyses the Statement of Comprehensive Income between items of a revenue and capital nature has been presented alongside the total Statement of Comprehensive Income.
The condensed financial statements have been prepared on a realisation basis (basis other than going concern). As a result of the change of basis and considering the costs of the wind-down process a provision of liquidation expenses of $293k was recorded in trade and other payables at 31 December 2025, with $293k remaining at 30 June 2026. The investments at fair value through profit & loss have been presented within current assets as the loans in the Company's portfolio is expected to be realised under one year. The Company, on a best-efforts basis, aims to realise and return proceeds to shareholders from its investment portfolio as promptly as practicable following the commencement of the Managed Wind-Down, noting that the process has now been extended beyond the initial one-year time frame. No other material adjustments to accounting policies or the valuation basis have arisen as a result of ceasing to apply the going concern basis. All of the balance sheet items have been recognised on a realisation basis, which is not materially different from the fair valued carrying amount.
The condensed financial statements are presented in United States dollars ($), being the presentation and functional currency of the Company."
These condensed financial statements do not constitute statutory accounts as defined in section 434 of the Companies act and do not include all information and disclosures required in an Annual Report. They should be read in conjunction with the Company's Annual Report for the year ended 31 December 2025.
The Company's Annual Report for the year ended 31 December 2025 included an unqualified audit report that included an Emphasis of Matter highlighting that the financial statements were prepared on a basis other than going concern. The audit report did not contain any statements under sections 498 (2) and (3) of the Companies Act 2006. A copy of this annual report has been delivered to the Registrar of Companies.
Going concern
As of the date of the report, the Directors are required to consider whether they have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. Following the AGM held on 22 May 2024 at which Shareholders voted in favour of a change in the Company's Investment Policy to Wind-Down Investment policy.
The Company's investment objective and Wind-Down Investment Policy is "to realise the Company's assets on a timely basis with the aim of making progressive returns of cash to holders of Ordinary Shares as soon as practicable". The Investment Manager is actively seeking exit opportunities to realise the loans comprising the Company's portfolio and returning the resulting proceeds to Shareholders. The Company is therefore preparing its financial statements on a basis other than going concern due to the Company being in a Managed Wind-Down.
The Company will continue to carry on its investment business during the Managed Wind-Down with the expectation of realising the Company's assets and returning of capital to its Shareholders.
The Directors consider that the change to the Company's objectives and Investment Policy, are in the best interests of Shareholders as a whole.
As of 30 June 2026, the Company has sufficient cash held in the SPVs reflected in the value of the Company's investments in the SPVs. As of the date of the financial statements, the Company and its SPVs have $2.8m cash and cash equivalents available. The Company's and its SPVs current cash will be able to meet the near-term current liabilities when come due.
Whilst the Directors are satisfied that the Company has adequate resources to continue in operation throughout the wind down period and will be able to meet all of its liabilities as they fall due, given the Company is now in Managed Wind-Down, the Directors considered it to be appropriate to adopt the basis other than going concern in preparing the financial statements. There were no material changes in the valuation of investments held at fair value as a result of ceasing to apply the going concern basis. All of the balance sheet items have been recognised on a realisation basis, which is not materially different from the IFRS carrying amounts. The Directors and the Investment Manager have made the appropriate provisions in order to bring about an orderly wind-down of the Company and its operations.
As of 30 June 2026, the weighted average remaining contractual tenor of the loans in the Company's portfolio is approximately one year, with equity positions also held in the portfolio that may be realised past 12 months from the date of this report. The Investment Manager is actively seeking to realise the loans comprising the Company's portfolio by holding them until they come to term or dispose in the secondary market where it considers this to be in the best interests of the Company. The Company in its best efforts, intends to realise and return to shareholders all proceeds in respect to its investment portfolio by the first quarter of 2027.
On 30 March 2026, the Company redeemed 12,134,802 Ordinary Shares, which was approximately 25 per cent. of the Company's Ordinary Shares by way of a Compulsory Redemption of Ordinary Shares. The Directors will make further announcements on the progress of the Managed Wind-Down strategy and the return of cash to Shareholders in due course.
Segmental Reporting
The chief operating decision-maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Board of Directors, as a whole. The key measure of performance used by the Board to assess the Company's performance and to allocate resources is the Company's Net Asset Value, as calculated under UK-adopted IAS, and therefore, no reconciliation is required between the measure of profit or loss used by the Board and that contained in the Interim Report.
For management purposes, the Company is organised into one main operating segment, which invests through its SPVs in a diversified portfolio of debt instruments, issued by Borrowers operating in the energy sector. All of the Company's current income is derived from within the United States.
All of the Company's non-current assets are located in the United States. Due to the Company's nature, it has no customers.
3. Significant accounting judgements, estimates and assumptions
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses.
Estimates and judgements are continually evaluated and are based on management experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Estimates and assumptions that are significant to the financial statements include the valuation of the investments as detailed in note 4 and the potential impact of climate change.
Further details of these judgements, estimates and assumptions made by the Directors are given in the annual financial statements for the year ended 31 December 2025. During the interim period there has been no change to the judgements, estimates and assumptions outlined in the annual report.
4. Investments at fair value through profit or loss
Reconciliation of Level 3 fair value measurements of financial assets
|
|
|
For the six months ended |
For the year ended 31 December 2025 |
||||
|
|
|
Loans |
Equity |
Total |
Loans |
Equity |
Total |
|
|
|
$'000 |
$'000 |
$'000 |
$'000 |
$'000 |
$'000 |
|
|
|
|
|
|
|
|
|
|
Opening balance |
|
33,595 |
10,354 |
43,949 |
44,593 |
18,142 |
62,735 |
|
Investment (proceeds) |
|
(7,452) |
(3,348) |
(10,800) |
(11,592) |
(5,208) |
(16,800) |
|
Movement in loan interest receivable |
|
(1,308) |
- |
(1,308) |
594 |
- |
594 |
|
Unrealised movement in fair value of investments |
|
- |
248 |
248 |
- |
(2,580) |
(2,580) |
|
|
|
24,835 |
7,254 |
32,089 |
33,595 |
10,354 |
43,949 |
As set out above the Company's investment in Riverstone International Credit Corp. comprises of a loan investment and an equity investment. The investment in Riverstone International Credit L.P. comprises of an equity investment. The SPVs invest in a diversified portfolio of direct and indirect investments in loans, notes, bonds and other debt instruments.
The investments are classified as current assets due to the Company's expectation that the investments will be realised within 12 months.
Interest receivable on the loan investment at 30 June 2026 is $0.4m (31 December 2025: $1.7m) and is included in investments at fair value through profit and loss. The unrealised movement in fair value of investments was shown in the Change in fair value of investments at fair value through profit or loss in the Condensed Statement of Comprehensive Income.
The dividend receivable on the equity investment at 30 June 2026 was $nil (31 December 2025: $nil). The total unfunded commitments of the Company by its SPV investments as at 30 June 2026 is $nil (31 December 2025: $nil).
Reconciliation of investment income recognised in the period
|
|
|
For the six months ended |
For the six months ended |
|
|
|
$'000 |
$'000 |
|
Movement in loan interest receivable at period end |
(1,308) |
1,336 |
|
|
Loan interest received as cash |
2,508 |
661 |
|
|
Total loan interest recognised in the period |
1,200 |
1,997 |
|
|
Dividend income |
138 |
380 |
|
|
Total investment income recognised in the period |
1,338 |
2,377 |
|
Total cash received in relation to interest income in the period was $2.5m (2025: $0.7m). This comprises $2.5m (2025: $0.7m) of loan interest in the period and $nil (2025: $nil) of amounts capitalised in the prior period.
Fair value measurements
As disclosed in the Company's Annual Report for the year ended 31 December 2025, IFRS 13 "Fair Value Measurement" requires disclosure of fair value measurement by level.
The level of fair value hierarchy within the financial assets or financial liabilities ranges from level 1 to level 3 and is determined on the basis of the lowest level input that is significant to the fair value measurement.
The fair value of the Company's investments is ultimately determined by the fair values of the underlying investments. Due to the nature of the investments, they are always expected to be classified as level 3 as the investments are not traded and contain unobservable inputs. There have been no transfers between levels during the six months ended 30 June 2026 (31 December 2025: none).
Valuation methodology and process
The Directors base the fair value of investment in the SPVs on the fair value of their assets and liabilities, adjusted, if necessary, to reflect liquidity, future commitments, and other specific factors of the SPVs and Investment Manager. This is based on the components within the SPVs, principally the value of the SPVs' investments, in addition to cash and short-term money market fixed deposits. Any fluctuation in the value of the SPVs' investments held will directly impact on the value of the Company's investment in the SPVs.
The Company's investment in Riverstone International Credit Corp. comprises a debt and an equity investment and is valued as one unit of account.
Investments held by SPVs
The SPVs' investments are valued using the techniques described in the Company's valuation policy, as outlined in note 2. The Investment Manager's assessment of fair value of investments held by the SPVs is determined in accordance with IPEV Valuation Guidelines. When valuing the SPVs' investments, the Investment Manager reviews information provided by the underlying investee companies and other business partners and applies IPEV methodologies, to estimate a fair value as at the date of the Statement of Financial Position.
Initially, acquisitions are valued at fair value, which is normally the transaction price. Subsequently, and as appropriate, the Investment Manager values the investments on a quarterly basis using common industry valuation techniques, including comparable public market valuation, comparable merger and acquisition transaction valuation and discounted cash flow valuation. The techniques used in determining the fair value of the Company's investments through its SPVs are selected on an investment-by-investment basis so as to maximise the use of market based observable inputs. These techniques also reflect the impact of primary and transition risks on the portfolio, although
the impact of the risks is minimal as the maximum investment period is seven years. As disclosed in note 2, due to the illiquid and subjective nature of the Company's underlying investments, the Investment Manager uses a third-party valuation provider to perform a full independent valuation of the underlying investments.
Quantitative information of significant unobservable inputs - Level 3 - SPV
|
|
30 June 2026 |
Valuation |
Unobservable |
Range / weighted |
|
Description |
$'000 |
technique |
input |
average |
|
|
|
|
|
|
|
|
|
|
|
|
|
SPV |
32,089 |
Adjusted net asset value |
NAV
|
32,089
|
|
|
31 December 2025 |
Valuation |
Unobservable |
Range / weighted |
|
Description |
|
technique |
input |
average |
|
|
$'000 |
|
|
$'000 |
|
|
|
|
|
|
|
SPV |
43,949 |
Adjusted net asset value |
NAV |
43,949 |
The Directors believe that it is appropriate to measure the SPVs at their adjusted net asset value, incorporating a valuation of the underlying investments which has taken into account risks to fair value, inclusive of liquidity discounts, through appropriate discount rates.
Sensitivity analysis to significant changes in unobservable inputs within Level 3 hierarchy
The significant unobservable inputs used in the fair value measurement categorised within Level 3 of the fair value hierarchy together with a quantitative sensitivity analysis as at 30 June 2026 are as shown below.
Given the Company's Managed Wind-Down strategy and the expectation that investments will be realised rather than new investments originated, the Directors consider that downside sensitivity is the more relevant measure of valuation risk and therefore only downside sensitivities have been presented.
|
|
|
Sensitivity |
Effect on |
|
Description |
Input |
used |
fair value |
|
|
|
|
$'000 |
|
|
|
|
|
|
SPV |
Discount for lack of liquidity |
-3% |
(963) |
The Company's valuation policy is compliant with both UK-adopted IAS and IPEV Valuation Guidelines and is applied consistently. As the Company's investments are generally not publicly quoted, valuations require meaningful judgement to establish a range of values, and the ultimate value at which an investment is realised may differ from its most recent valuation and the difference may be significant.
For the period ended 30 June 2026, the valuations of the Company's investments, through its SPVs, are detailed in the table below and also detailed in the Investment Manager's Report.
The table below presents the sensitivity of the fair value of investments held by the SPVs to changes in significant unobservable inputs such as the discount rate, expected recovery on par value and the EBITDA multiple used in determining fair value for each industry as at 30 June 2026.
|
Industry |
Investments at Fair Value as of June 30, 2026 (In Thousands) |
Valuation technique(s) |
Unobservable input(s) |
Range |
Fair Value sensitivity to a 100 bps in the discount rate Thousands) |
|
|
|
|
|
|
Low |
High |
|
|
Infrastructure Services |
29,728 |
Discounted cash flow |
Discount rate |
6% |
9% |
(721) |
|
|
|
Recovery approach Transaction approach |
% of Par Letter of intent |
5% 20% |
5% 25% |
|
|
|
|
|
|
|
|
|
|
|
$ 29,728(a) |
|
|
|
|
$ (721) |
|
|
|
|
|
|
|
|
(a) The difference between the fair value of the SPVs of $32.1m and the fair value of the underlying investments at 30 June 2026 is due to cash and cash equivalent balances of $1.2m, and unsettled trade receivable and residual receivables of $1.2m, held within the SPVs.
5. Unconsolidated subsidiaries
The following table shows subsidiaries of the Company. As the Company is regarded as an Investment Entity these subsidiaries have not been consolidated in the preparation of the financial statements:
|
Investment |
|
Place of business |
Ownership interest as at 30 June 2026 |
Ownership interest as at 31 December 2025 |
|
|
|
|
|
|
|
Held directly |
|
|
|
|
|
Riverstone International Credit Corp. |
|
USA |
100% |
100% |
|
Riverstone International Credit L.P. |
|
USA |
100% |
100% |
|
Held indirectly |
|
|
|
|
|
Riverstone International Credit - Direct L.P. |
|
USA |
100% |
100% |
The registered office of the above subsidiaries is c/o The Corporation Trust Company, Corporation Trust Center, 1209 Orange Street, Wilmington, Delaware 19801.
Riverstone International Credit Corp. had a net asset value of $(2.2m) as at 30 June 2026 (31 December 2025: $1.2m) with a loss of $0.6m (31 December 2025: $4.2m loss).
The amounts invested in the Company's directly held unconsolidated subsidiaries during the period and their carrying value at 30 June 2026 are as outlined in note 4 comprising:
|
|
|
30 June 2026 |
31 December 2025 |
|
|||||||
|
|
|
Riverstone International Credit Corp. |
Riverstone International Credit L.P. |
Total |
Riverstone International Credit Corp. |
Riverstone International Credit L.P. |
Total |
||||
|
|
|
$'000 |
$'000 |
$'000 |
$'000 |
$'000 |
$'000 |
||||
|
|
|
|
|
|
|
|
|
||||
|
Opening balance at 1 January |
|
34,822 |
9,127 |
43,949 |
57, 335 |
5,400 |
62,735 |
||||
|
Loan interest receivable |
|
(1,308) |
- |
(1,308) |
594 |
- |
594 |
||||
|
Investment proceeds |
|
(10,800) |
- |
(10,800) |
(16,800) |
- |
(16,800) |
||||
|
Movement in fair value |
|
(70) |
318 |
248 |
(6,306) |
3,727 |
(8,557) |
||||
|
Closing balance at 30 June/ 31 December |
|
22,644 |
9.445 |
32,089 |
34,822 |
9,127 |
43,949 |
||||
There are no restrictions on the ability of the Company's unconsolidated subsidiaries to transfer funds in the form of cash distributions or repayment of loans. All of the Company's interest income and dividend income is receivable directly from the Company's SPVs.
6. Trade and other receivables
|
|
|
30 June 2026 |
31 December 2025 |
|
|
|
$'000 |
$'000 |
|
Prepayments |
|
119 |
123 |
|
VAT receivable |
|
43 |
188 |
|
Bank interest receivable |
|
4 |
2 |
|
|
|
166 |
313 |
7. Trade and other payables
|
|
30 June 2026 |
31 December 2025 |
|
|
$'000 |
$'000 |
|
Provision for liquidation costs |
293 |
293 |
|
Other payables |
293 |
486 |
|
|
586 |
779 |
8. Share capital and reserves
|
Date |
Issued and fully paid |
|
Number of shares issued |
Share capital |
Capital redemption reserve |
Other distributable reserves |
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GBP |
|
|
|
£'000 |
£'000 |
£'000 |
£'000 |
|
|
|
1 January 2026 |
|
1 |
- |
- |
- |
- |
|
||
|
30 June 2026 |
|
|
1 |
- |
- |
- |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
USD |
|
|
|
$'000 |
$'000 |
$'000 |
$'000 |
|
|
|
1 January 2026 |
|
49,066,161 |
491 |
509 |
42,940 |
43,940 |
|
||
|
Distributions paid in the period |
- |
- |
- |
(822) |
(822) |
|
|||
|
Share redemption |
(12,134,802) |
(122) |
122 |
(10,830) |
(10,830) |
|
|||
|
30 June 2026 |
|
|
36,931,359 |
369 |
631 |
31,288 |
32,288 |
|
|
As at 30 June 2026 the Company's issued share capital comprises 36,931,359 Ordinary Shares at $0.01 per share and 1 E Share at $1 per share. Ordinary Shareholders are entitled to all distributions paid by the Company and, on a winding up, provided the Company has satisfied all of its liabilities, the Shareholders are entitled to all of the surplus assets of the Company. E shares are non-redeemable shares and grant the registered holders the right to receive notice of and to attend but, except where there are no other shares of the Company in issue, not to speak or vote (either in person or by proxy) at any general meeting of the Company.
On 30 March 2026, the Company redeemed 12,134,802 Ordinary Shares, which was approximately 25 per cent. of the Company's Ordinary Shares by way of a Compulsory Redemption of Ordinary Shares.
|
Date |
Issued and fully paid |
Number of shares issued |
Share capital |
Capital redemption reserve |
Other distributable reserves |
Total |
|
|
|
|
|
|
|
|
|
|
|
GBP |
|
|
£'000 |
£'000 |
£'000 |
£'000 |
|
|
1 January 2025 |
1 |
- |
- |
- |
- |
||
|
30 June 2025 |
|
1 |
- |
- |
- |
- |
|
|
|
|
|
|
|
|
|
|
|
USD |
|
|
$'000 |
$'000 |
$'000 |
$'000 |
|
|
1 January 2025 |
68,157,036 |
682 |
318 |
61,795 |
62,795 |
||
|
Distributions paid in the period |
- |
- |
- |
(545) |
(545) |
||
|
Share Redemption |
(19,090,875) |
(191) |
191 |
(16,800) |
(16,800) |
||
|
30 June 2025 |
|
49,066,161 |
491 |
509 |
44,450 |
45,450 |
|
As at 30 June 2025, the Company's authorised and issued share capital comprises 49,066,161 Ordinary Shares at $0.01 per share and 1 E Share at $1 per share.
9. Audit fees
|
|
|
For the six months ended |
For the six months ended |
|
|
|
$'000 |
$'000 |
|
Fees to the Company's Auditor |
|
|
|
|
for audit of the statutory financial statements |
|
119 |
163 |
|
for other audit related services |
|
31 |
34 |
|
|
|
150 |
197 |
Other fees paid to the Company's Auditor for other audit related services of $31k (30 June 2025: $34k) were in relation to the review of the Interim Report.
The fees payable to the Company's Auditor include estimated accruals proportioned across the period for the audit of the statutory financial statements and the fees for other audit related services were in relation to the review of the Interim Report. There were $nil fees paid for other non-audit services in the period (30 June 2025: $nil).
10. Profit Share
Under the Investment Management Agreement, the Investment Manager will not charge any base or other ongoing management fees but will be entitled to reimbursement of reasonable expenses incurred by it in the performance of its duties.
The Investment Manager will receive from the Company, a Profit Share based on the Company's income, as calculated for UK tax purposes and the Company's Capital Account.
The Profit Share will be payable quarterly at the same time as the Company pays its distributions, subject to an annual reconciliation in the last quarter of each year, as disclosed in the Company's Annual Report for the year ended 31 December 2025.
Amounts expensed as Profit Share during the period was $nil (30 June 2025: $nil).
11. Tax
As an investment trust, the Company is exempt from UK corporation tax on capital gains arising on the disposal of shares. Capital profits from its loan relationships are exempt from UK tax where the profits are accounted for through the Capital column of the Statement of Comprehensive Income, in accordance with the AIC SORP.
The Company has made a streaming election to HMRC in respect of distributions and is entitled to deduct interest distributions paid out of income profits arising from its loan relationships in computing its UK corporation tax liability. Therefore, no tax liability has been recognised in the financial statements.
|
|
For the six months ended |
For the six months ended |
||||
|
|
Revenue |
Capital |
Total |
Revenue |
Capital |
Total |
|
|
$'000 |
$'000 |
$'000 |
$'000 |
$'000 |
$'000 |
|
|
|
|
|
|
|
|
|
UK Corporation tax charge on profits for the year at 25% (2025: 25%) |
- |
- |
- |
- |
- |
- |
|
|
For the six months ended |
For the six months ended |
||||
|
|
Revenue |
Capital |
Total |
Revenue |
Capital |
Total |
|
|
$'000 |
$'000 |
$'000 |
$'000 |
$'000 |
$'000 |
|
|
|
|
|
|
|
|
|
Return on ordinary activities before taxation |
715 |
248 |
963 |
1,624 |
(2,541) |
(917) |
|
|
|
|
|
|
|
|
|
Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2025: 25%) |
179 |
62 |
241 |
406 |
(635) |
(229) |
|
|
|
|
|
|
|
|
|
Effects of: |
|
|
|
|
|
|
|
Non-taxable investment gains / (losses) on investments |
- |
(62) |
(62) |
- |
635 |
635 |
|
Non-taxable dividend income |
(35) |
- |
(35) |
(95) |
- |
(95) |
|
Expenses not deductible for tax purposes |
10 |
- |
10 |
|
|
|
|
Tax deductible interest distributions |
(300) |
- |
(300) |
(497) |
- |
(497) |
|
Movement in deferred tax not recognised |
146 |
- |
146 |
186 |
|
186 |
|
Non-taxable expenses |
|
- |
- |
- |
- |
- |
|
Total tax charge |
- |
- |
- |
- |
- |
- |
As at 30 June 2026 the Company has excess management expenses of $5,587,423 that are available to offset future taxable revenue. A deferred tax asset of $1,396,856, measured at the substantively standard corporation tax rate of 25% has not been recognised in respect of these expenses since the Directors believe that there will be no taxable profits in the future against which the deferred tax asset can be offset.
Deferred tax is not provided on capital gains and losses arising on the revaluation or disposal of investments because the Company meets (and intends to continue to meet for the foreseeable future) the conditions for approval as an Investment Trust company.
Taxes are based on the UK Corporate tax rate which existed as of the balance sheet date which was 25%. The main rate of Corporation tax is 25% for companies with profits over £250,000.
12. Earnings per share and Net assets per share
Earnings per share
|
|
For the six months ended |
For the six months ended |
||||
|
|
Revenue |
Capital |
Total |
Revenue |
Capital |
Total |
|
Profit/(loss) attributable to equity holders of the Company - $'000 |
715 |
248 |
963 |
1,624 |
(2,541) |
(917) |
|
Weighted average number of Ordinary Shares in issue |
|
|
42,831,152 |
|
|
67,735,138 |
|
Basic and diluted earnings and loss per Share from continuing operations in the period (cents) |
1.67 |
0.58 |
2.25 |
2.40 |
(3.75) |
(1.35) |
There are no dilutive shares in issue.
Net assets per share
|
|
|
30 June 2026 |
31 December 2025 |
|
Net assets - $'000 |
|
33,124 |
43,813 |
|
Number of Ordinary Shares issued |
|
36,931,359 |
49,066,161 |
|
Net assets per Share (cents) |
|
89.69 |
89.29 |
|
|
|
|
|
13. Distributions declared with respect to the period
|
|
|
Distribution per share |
Total distribution |
|
Interim distributions paid during the period ended 30 June 2026 |
|
cents |
$'000 |
|
|
|
|
|
|
With respect to the quarter ended 31 December 2025 |
|
1.11 |
545 |
|
With respect to the quarter ended 31 March 2026 |
|
0.75 |
278 |
|
|
|
|
|
|
|
|
1.86 |
822 |
|
|
|
|
|
|
|
|
Distribution per share |
Total distribution |
|
Interim distributions declared after 30 June 2026 and not accrued in the period |
|
cents |
$'000 |
|
With respect to the quarter ended 30 June 2026 |
|
0.25 |
92 |
|
|
|
|
|
On 12 August 2026, the Board approved a distribution of 0.25 cents per share with respect to the quarter ended 30 June 2026. The record date for the distribution is 21 August 2026 and the payment date is 18 September 2026.
14. Related Party Transactions
Directors
The Company has three non-executive Directors. Directors' fees for the period ended 30 June 2026 amounted to $80k (30 June 2025: $79k), of which $nil (31 December 2025: $nil) was outstanding at period end. Amounts paid to Directors as reimbursement of travel and other incidental expenses during the period amounted to $6k (30 June 2025: $4k), of which $nil (31 December 2025: $4k) was outstanding at period end.
SPVs
In 2019, the Company provided a loan to the US Corp. which accrues interest at 9.27 per cent. Any interest that is unable to be repaid at each quarter end is capitalised and added to the loan balance. Total interest in relation to the period was $1.2m (30 June 2025: $2.4m) of which $0.9m (30 June 2025: $0.7m) was received in cash and $0.4m remained outstanding at the period end (31 December 2025: $1.7m outstanding). The balance on the loan investment at 30 June 2026 was $24.8m (31 December 2025: $31.9m). The Company also has equity investments the balance of these investments at 30 June 2026 was $7.3m (31 December 2025: $10.4m). During the period the equity investments had a fair value movement of $0.2m (31 December 2025: $2.6m).
Investment Manager
The Investment Manager is an affiliate of Riverstone and provides advice to the Company on the management of the portfolio and on realisations, as well as on funding requirements, subject to Board approval. For the provision of services under the Investment Management Agreement, the Investment Manager earns a Profit Share, as disclosed in note 12 in the Company's Annual Report for the year ended 31 December 2025. The Investment Manager is entitled to reimbursement of any reasonable expenses incurred in relation to management of the Company and amounts reimbursed during the period were $9.6k (31 December 2025: $166k). Christopher Abbate and Jamie Brodsky, both portfolio managers of RCOI transferred their shares from the Investment Manager to Breakwall Capital on 1 January 2024. They purchased no new shares during 2026.
15. Subsequent events
With the exception of the distributions declared and disclosed in note 13, there are no other material subsequent events.
Glossary of Capitalised Defined Terms
Administrator means Ocorian Administration (UK) Limited
Admission means admission of the Ordinary Shares on 28 May 2019, to the Official List and/or admission to trading on the Specialist Fund Segment of the London Stock Exchange, as the context may require
AGM means Annual General Meeting
AIC means the Association of Investment Companies
AIC Code means the AIC Code of Corporate Governance
AIC SORP means the Statement of Recommended Practice issued by the AIC in November 2022 and updated in July 2022 for the Financial Statements of Investment Trust Companies and Venture Capital Trusts
Annual Report means the Company's yearly report and financial statements for the year ending 31 December 2025
APLMA means Asia Pacific Loan Market Association
Auditor means Ernst & Young LLP or EY
Board means the Directors of the Company
Borrower means entities operating in the energy sector that issue loans, notes, bonds, and other debt instruments including convertible debt
Breakwall means Breakwall Capital LP
Capital Amount means the amount of gross proceeds of the IPO, plus the net proceeds of any future issues of Ordinary Shares, less any amounts expended by the Company on share repurchases and redemptions or, following a Realisation Election attributable to Realisation Shares
Company or RCOI means Riverstone Credit Opportunities Income Plc and its underlying SPVs
Compulsory Redemptions means the total issued share capital redeemed
Directors means the Directors of the Company
Distributable Income means the Company's income, as calculated for UK tax purposes
DTR means the Disclosure Guidance and Transparency Rules sourcebook issued by the Financial Conduct Authority
ESG means environmental, social and governance
E&P means exploration and production
FCA means the UK Financial Conduct Authority (or its successor bodies)
Firm or Investment Manager means Riverstone Investment Group LLC
GHG means Greenhouse gases
GREEN LOAN means to align lending and environmental objectives. It refers to any type of loan instrument made available exclusively to finance or re-finance, in whole or in part, new and/or existing eligible Green Projects. Green loans must align with the four components of the Green Loan Principles. We strive to enhance the decarbonisation impact of our credit portfolio and advance the energy transition infrastructure
GREEN LOAN PRINCIPLES means a clear framework of the characteristics of a Green Loan with four core components 1. Use of Proceeds, 2. Process for the Project Evaluation and Selection, 3. Management of Proceeds and 4. Reporting. The Green Loan principles promote the development and integrity of the Green Loan product through leading financial institutions active in the global loan markets. Green Loan Principles (GLP) have been developed by an experienced working party, consisting of representatives from leading financial institutions active in the global syndicated loan markets, with a view to promoting the development and integrity of the Green Loan product. The GLP comprise voluntary recommended guidelines, to be applied by market participants on a deal-by-deal basis depending on the underlying characteristics of the transaction, which seek to promote integrity in the development of the Green Loan market by clarifying the instances in which a loan may be categorised as "green"
H&W means Harland and Wolff
Hoover CS means Hoover Circular Solution
IAS means the international accounting standards
IFRS means the International Financial Reporting Standards, being the principles-based accounting standards, interpretations and the framework by that name issued by the International Accounting Standards Board, to the extent they have been adopted by the UK
Investment Management Agreement means the Investment Management Agreement entered between the Investment Manager and the Company
Investment Manager means Riverstone Investment Group LLC
IPCC means Intergovernmental Panel on Climate Change
IPEV Valuation Guidelines means the International Private Equity and Venture Capital Valuation Guidelines
IPO means the initial public offering of shares by a private company to the public
IRR means internal rate of return
Listing Rules means the listing rules made by the UK Listing Authority under Section 73A of the Financial Services and Markets Act 2000
London Stock Exchange or LSE means London Stock Exchange plc
LSTA means Loan Syndications & Trading Association
LTV means loan to value ratio
Main Market means the main market of the London Stock Exchange
MAX means Max Energy Industrial Holdings US LLC
MOIC means multiple on invested capital
NAV or Net Asset Value means the value of the assets of the Company less its liabilities as calculated in accordance with the Company's valuation policy and expressed in US dollars
Ordinary Shares means ordinary shares of $0.01 in the capital of the Company issued and designated as "Ordinary Shares" and having the rights, restrictions and entitlements set out in the Company's articles of incorporation
Other Riverstone Funds means other Riverstone-sponsored, controlled or managed entities, which are or may in the future be managed or advised by the Investment Manager or one or more of its affiliates, excluding the SPV
Profit Share means the payments to which the Investment Manager is entitled in the circumstances and as described in the notes to the financial statements
RCF or Facility means Revolving Credit Facility
RCOI means Riverstone Credit Opportunities Income plc or the Company
RIC D means Riverstone International Credit - Direct, L.P.
Riverstone means Riverstone Holdings LLC.
Realisation Period means the period from the start of the winding up of the Company to the completion of the wind up process
Realisation Shares means realisation shares of US$0.01 in the capital of the Company, as defined in the prospectus
Recovery Approach means the Company no longer expects the borrower to fully repay the loan based on the original loan agreements and therefore applies a recovery approach. Full repayment under the original loan terms is no longer considered probable.
Seawolf means Seawolf Water Resources
Specialist Fund Segment means the Specialist Fund Segment of the London Stock Exchange's Main Market
SPO means Second Party Opinion
SPT means Sustainable performance targets
SPV means any intermediate holding or investing entities that the Company may establish from time to time for the purposes of efficient portfolio management and to assist with tax planning generally and any subsidiary undertaking of the Company from time to time
Sub-Manager means Breakwall Capital LP
Sustainability-Linked Loans or SLL means a loan with the aim to facilitate and support environmentally and socially sustainable economic activity and growth. We seek to enhance the decarbonisation impact of our credit portfolio and enhance the energy transition infrastructure. Sustainability-Linked Loans follow a set of Sustainability-Linked Loan Principles (SLLP) which were originally published in 2019 and provide a framework to Sustainability-Linked Loan structures. In order to promote the development of this product, and underpin its integrity, the APLMA, LMA and LSTA considered it appropriate to produce Guidance on the SLLP, to provide market practitioners with clarity on their application and approach
Sustainability-Linked Loan Principles (SLLP) means principles originally published in 2019 and provide a framework to Sustainability-Linked Loan structures
TCFD means the Task Force on Climate-Related Financial Disclosures
Term Loan means Sustainability-Linked first lien term loan
UK or United Kingdom means the United Kingdom of Great Britain and Northern Ireland
UK Code means the UK Corporate Governance Code issued by the FRC
US or United States means the United States of America, its territories and possessions, any state of the United States and the District of Columbia
US Corp. means Riverstone International Credit Corp.
Warrants means detachable warrants over new ordinary shares in the Company
Wind-down Investment policy means the Company's investment policy is to realise the Company's assets on a timely basis with the goal of making returns of cash to holders of Ordinary Shares as soon as possible.
Directors and General Information
|
Directors |
|
|
Reuben Jeffery, III (Chairman) (appointed 2 April 2019) |
|
|
Emma Davies (Audit and Risk Committee Chair) (appointed 2 April 2019) |
|
|
Edward Cumming-Bruce (Nomination Committee Chair) (appointed 2 April 2019) |
|
|
all independent and of the registered office below |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Registered Office 5th Floor 20 Fenchurch Street London EC3M 3BY
Investment Manager Riverstone Investment Group LLC c/o The Corporation Trust Company Corporation Trust Center 1209 Orange Street Wilmington Delaware 19801
Company Secretary and Administrator Ocorian Administration (UK) Limited 5th Floor 20 Fenchurch Street London EC3M 3BY
Independent Auditor Ernst & Young LLP 25 Churchill Place London E14 5EY
Legal Adviser to the Company Hogan Lovells LLP Atlantic House 50 Holborn Viaduct
Sub-investment Manager Breakwall Capital LP 174 Bellevue Avenue, Suite 200-A Newport, RI 02840
|
Website: www.riverstonecoi.com ISIN GB00BRBWLX34 Ticker RCOI.LSE Sedol BRBWLX3 Registered Company Number 11874946
Registrar MUFG Corporate Markets The Registry Central Square 29 Wellington Street Leeds LS1 4DL
Sole Bookrunner J.P. Morgan Securities plc 25 Bank Street Canary Wharf London E14 5JP
Receiving Agent MUFG Corporate Markets Corporate Actions The Registry Central Square 29 Wellington Street Leeds LS1 4DL
Principal Banker and Custodian J.P. Morgan Chase Bank, N.A. 270 Park Avenue New York NY 10017-2014 |
Cautionary Statement
The Chairman's Statement and Investment Manager's Report have been prepared solely to provide additional information for Shareholders to assess the Company's strategies and the potential for those strategies to succeed. These should not be relied on by any other party or for any other purpose.
The Chairman's Statement and Investment Manager's Report may include statements that are, or may be deemed to be, "forward-looking statements". These forward-looking statements can be identified by the use of forward-looking terminology, including the terms "believes", "estimates", "anticipates", "expects", "intends", "may", "will" or "should" or, in each case, their negative or other variations or comparable terminology.
These forward-looking statements include all matters that are not historical facts. They appear in a number of places throughout this document and include statements regarding the intentions, beliefs or current expectations of the Directors and the Investment Manager, concerning, amongst other things, the investment objectives and investment policy, financing strategies, investment performance, results of operations, financial condition, liquidity, prospects, and distribution policy of the Company and the markets in which it invests.
By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Forward-looking statements are not guarantees of future performance.
The Company's actual investment performance, results of operations, financial condition, liquidity, distribution policy and the development of its financing strategies may differ materially from the impression created by the forward-looking statements contained in this document.
Subject to their legal and regulatory obligations, the Directors and the Investment Manager expressly disclaim any obligations to update or revise any forward-looking statement contained herein to reflect any change in expectations with regard thereto or any change in events, conditions or circumstances on which any statement is based.
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