Foresight Solar Fund Limited Q2 2021 Net Asset Value and Operational Update (1599H)
August 02 2021 - 2:00AM
UK Regulatory
TIDMFSFL
RNS Number : 1599H
Foresight Solar Fund Limited
02 August 2021
2 August 2021
Foresight Solar Fund Limited (the "Company")
Q2 2021 Net Asset Value, operational update and Interim Results
release date
Foresight Solar Fund Limited, a fund investing in a diversified
portfolio of ground-based solar PV and battery storage assets in
the UK and internationally, announces that as at 30 June 2021 its
unaudited Net Asset Value was GBP596.4 million (31 March 2021:
GBP558.7 million), resulting in a NAV per Ordinary Share of 98.0
pence (31 March 2021: 91.9 pence per share).
Summary of NAV Key drivers for Q2 2021:
Item p/share movement
NAV at 31 March 2021 91.9
-----------------
Power forecasts + 2.9
-----------------
Power Purchase Agreements +0.5
-----------------
Bannerton refinance +0.7
-----------------
Inflation +0.9
-----------------
Business Rates +0.5
-----------------
Generation forecast +0.3
-----------------
Other movements +0.3
-----------------
NAV at 30 June 2021 98.0
-----------------
The increase in NAV over the second quarter is attributable to
various factors. Most significant was an upward revision in power
price forecasts due to the strengthening in commodity and carbon
prices in the short and medium term. The upward shift in power
price forecasts, based upon independent forecasts from three
independent consultants available as at 30 June 2021, resulted in a
positive impact on NAV of approximately 2.9 pence per share.
Power prices in the UK have continued to strengthen during the
first six months of 2021 due to high commodity prices and following
the easement of the Covid-19 social and economic restrictions. The
Company continues to actively manage its power price exposure with
the objective of increasing the predictability of cash flows by
ensuring a sufficient percentage of revenues are hedged at optimal
electricity prices, having identified the opportunity to
successfully enter new fixed price agreements for various UK
portfolio assets during the period. The new agreements were secured
at prices significantly above forecast, delivering an increase in
NAV of approximately 0.5 pence per share. Following the execution
of the new agreement the percentage of fixed revenues for the
company is expected to increase to 75% of total revenues in 2021,
74% in 2022 and 57% in 2023.
During the period the Company also successfully refinanced one
of its Australian assets, Bannerton. The new 5-year term debt
facility has been secured on significantly more attractive
financing terms resulting in a positive impact on NAV of 0.7 pence
per share.
Other relevant NAV movements include the adjustment of actual
inflation figures for the first six months of 2021 (positive impact
on NAV of 0.9 pence per share), the independent review of business
rate assumptions for UK assets after the end of the ROC subsidy
period (positive impact on NAV of 0.5 pence per share) and a review
of the generation forecast for assets presenting historical
performance for a minimum period of 2 years consistently above base
case (positive impact on NAV of 0.3 pence per share).
The Gross Asset Value ("GAV"), including Company and
subsidiaries, as at 30 June 2021, was GBP1,057.2 million (31 March
2021: GBP1,023.5 million).
Operational Update
Electricity generation from the UK portfolio for the six months
to June was 3.4% above budget, driven by strong asset operational
performance and irradiation levels above budget.
Positive progress continues to be made across the Company's 146
MW Australian portfolio with all projects fully operational.
In Spain, the Virgen del Carmen subsidy-free project currently
under construction is expected to be commissioned by the end of
September 2021. In relation to the 98.5MW subsidy-free solar
portfolio acquired on 31 December 2020, the Investment Manager
continues to evaluate long-term Power Purchase Agreement options
with major European energy suppliers. The Company reaffirms its
intention to finalise the Power Purchase Agreement and introduce a
project finance facility at portfolio level to partially fund
construction milestones during the course of 2021.
Gearing update
The Company's total outstanding debt as of 30 June 2021 was
GBP460.8 million, including long-term debt of GBP379.9 million and
revolving credit facilities of GBP80.9 million.
The total outstanding long-term debt of GBP379.9 million
represents approximately 35.9% of GAV of the Company and
Subsidiaries as at 30 June 2021.
The total outstanding debt including revolving credit facilities
of GBP460.8 million represents approximately 43.6% of GAV of the
Company and Subsidiaries as at 30 June 2021.
Dividend
The Company remains on target to deliver an annual dividend of
6.98 pence per share for the year ending 31 December 2021. The
second interim dividend payment of 1.745 pence per share is
scheduled to be paid on 27 August 2021 as previously announced.
2021 Interim Results release date
The Company announces it plans to release full results for the
six-month period to 30 June 2021 on 16 September. A further Notice
of Results announcement will be released in due course.
For further information, please contact:
Foresight Group
+44 (0)20 3911
Nish Sivarajan 2318
(InstitutionalIR@ForesightGroup.eu)
+44(0)20 7029
Jefferies International Limited 8000
Neil Winward
Gaudi Le Roux
+44(0)20 7638
Citigate Dewe Rogerson 9571
Toby Moore
Elizabeth Kittle
Lucy Gibbs
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