Gore Street Energy Storage (GSF ) shares have rallied 9% after the battery fund reaffirmed its 7% dividend target and said its payout was fully covered by earnings in the last quarter.

Having seen its shares slide last week in response to dividend cuts by Gresham House Energy Storage (GRID ) and Harmony Energy Income (HEIT ), the company this morning reassured investors that it intended to maintain its policy of distributing 7% of net assets a year in dividends.

Although GSF’s more international portfolio is less exposed to the UK than its two listed rivals, where revenues have slumped, there has been speculation that it might have to amend its dividend policy in light of the volatile earnings battery funds have experienced.

Chair Pat Cox said the board and fund manager shared investors’ concerns over low revenue generation in Great Britain (GB) caused by falling power prices and technical problems at National Grid combined with over-supply in some areas of the market and a lack of use of battery projects in others.  

‘In this challenging period for the GB energy storage industry, it is crucial to acknowledge the resilience and fundamentally differentiated strategy employed by our company,’ Cox said.

GSF shares jumped 9.25%, or 6.3p, to 74.6p, reducing their decline this year to 15%. The company closed last week on a wide 39% discount to net asset value (NAV).

GRID was unchanged at 47.8p after its 56% crash this year that has left its shares on a 67% discount. HEIT, viewed as a bid target by its broker, rose 1.6% to 38.5p. Its shares have tumbled 52% this year and also trail NAV by 67%.

More to follow.