TIDMUSF TIDMUSFP
RNS Number : 9371C
US Solar Fund PLC
28 February 2022
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28 February 2022
US SOLAR FUND PLC (USF, the "Company")
Q4 2021 Unaudited NAV and Factsheet
US Solar Fund plc (LON: USF (USD)/USFP (GBP)) is pleased to
announce its unaudited NAV at 31 December 2021 of $324 million or
$0.975 per Ordinary Share (30 September 2021 NAV of $314.7 million
or $0.947 per Ordinary Share).
Highlights for the period to 31 December 2021:
-- The key drivers of the 3% increase from the 30 September 2021
NAV of $0.947 per Ordinary Share were useful life extensions for
assets in the portfolio ($0.045) and an uplift in the initial
valuation of the interest in and option over Mount Signal 2 (MS2)
($0.024); which more than offset a softer average long-term
electricity price outlook, tax and working capital adjustments, and
model roll forward (collectively -$0.041).
-- In coordination with a leading independent engineer (IE), 30
of 42 assets in the portfolio were subject to useful life
extensions up to a maximum of 40 years from commencement of
commercial operations. The IE reviewed the geotechnical and
structural design, historical operational performance, budgeted
operating costs, and other key components to determine a
recommended useful life and associated assumptions, including
additional maintenance and capital expenditure. Assets that were
considered for extensions have permits, contracts, and land control
to support the term of useful life.
-- Full-year production for 2021 was 3.9% below budget with 1.5%
due to lower-than-expected irradiance and 2.4% due predominantly to
the H1 contractually allowable and expected curtailment at MS2 in
California, isolated performance issues, unplanned outages, snow,
and other adverse weather impacts. All issues are now resolved or
scheduled to be resolved in coming months.
-- The dividend remained comfortably cash covered, at 1.82x for
the twelve months ended 31 December 2021.
-- USF's dividend for the quarter ended 30 September 2021 of 1.5
cents per Ordinary Share was paid on 7 January 2022. Including this
third 2021 Interim Dividend, dividends paid and declared for the
2021 financial year thus far total 4.0 cents, in line with the
Company's full year dividend target of 5.5 cents per Ordinary
Share. The final 2021 dividend will be announced in March 2022
alongside the 2021 annual results.
-- All assets in the portfolio have power purchase agreements
(PPAs) with contracted prices for 100% of electricity generated.
The portfolio weighted average PPA term is 14.4 years as of 31
December 2021, and all PPA counterparties are investment-grade
(S&P rated A to BBB).
-- As of 31 December 2021, the Investment Manager's pipeline
included 1,940 MW(DC) of high-quality assets, with an aggregate
value of approximately $2.2 billion in cash equity value and a
weighted-average PPA term of 17.7 years.
In February 2022, after the end of the period, USF exercised its
option to acquire a further 25% (50MW(DC) ) of MS2, a 200MW(DC)
project in California. Upon close, this will bring USF's total
ownership of MS2 to 50% or 100 MW(DC) and the total USF portfolio
to 543MW(DC) .
In February, USF released its inaugural Sustainability Report ,
available on the Company's website at:
www.ussolarfund.co.uk/investor-centre/key-documents-and-disclosure.
This report forms a core part of USF's commitment to support our
investors with their own ESG-related obligations. While USF is not
formally required to comply with the upcoming EU Sustainable
Financial Disclosure Regulation, we intend to align reporting with
a view to compliance with this regime.
The NAV update and the Company's factsheet for Q4 2021 are
available on the Company's website at:
www.ussolarfund.co.uk/investor-centre. A separate Solar Market
Update can be found on the website at:
www.ussolarfund.co.uk/media-and-insights.
Liam Thomas, CEO of New Energy Solar, US Solar Fund's investment
manager, said
"The energy transition is progressing well in the United States,
and we're pleased to report a stronger fourth quarter net asset
value, rising 3% over the quarter This was driven by an improvement
in the valuation of our Mount Signal 2 asset in California, coupled
with useful life extensions in the portfolio which more than offset
a marginally softer average long-term electricity price
outlook.
The use of existing cash reserves to purchase a an additional
25%, or 50 MW(DC) of MS2, earlier this month increased the income
generating portfolio, further supporting the dividend. We continue
to target a 5.5 cent dividend for the year, equivalent to just over
a 5.5% nominal yield."
For further information, please contact:
US Solar Fund
Whitney Voute +1 718 230 4329
Cenkos Securities plc
James King
Tunga Chigovanyika
Will Talkington +44 20 7397 8900
Jefferies International Limited
Stuart Klein
Gaudi le Roux +44 20 7029 8000
KL Communications +44 20 3995 6673
Charles Gorman
Will Sanderson
About US Solar Fund plc
US Solar Fund plc, established in 2019, is listed on the premium
segment of the London Stock Exchange in April 2019 with a market
capitalisation of approximately $340m. The Company's investment
objective is to provide investors with attractive and sustainable
dividends with an element of capital growth by owning and operating
solar power assets in North America and other OECD countries in the
America.
The solar power assets that the Company acquires or constructs
are expected to have an asset life of at least 30 years and
generate stable and uncorrelated cashflows by selling electricity
to creditworthy offtakers under long-term power purchase agreements
(or PPAs). The Company's portfolio consists of 42 operational solar
projects with a total capacity of 543MW(DC) , all located in the
United States.
Further information on the Company can be found on its website
at http://www.ussolarfund.co.uk .
About the Investment Manager
USF is managed by New Energy Solar Manager (NESM). NESM also
manages New Energy Solar, an Australian Securities Exchange
(ASX)-listed fund. Combined, US Solar Fund and New Energy Solar
have committed approximately US$1.3 billion to 57 projects
totalling 1.2GWDC.
NESM is owned by E&P Funds, the funds management division of
E&P Financial Group, an ASX listed company (ASX: EP1) with over
A$20 billion of funds under advice.
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