TIDMUSF TIDMUSFP
RNS Number : 3722S
US Solar Fund PLC
09 March 2023
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INVESTMENTS IN ANY JURISDICTION.
9 March 2023
US SOLAR FUND PLC (USF, the "Company")
QUARTERLY TRADING AND NAV UPDATE
US Solar Fund plc (LON: USF (USD)/USFP (GBP)) announces that its
unaudited NAV at 31 December 2022 was $320.0 million or $0.963 per
ordinary share, a decrease from the 30 September 2022 NAV of $322.2
million or $0.970 per ordinary share.
Highlights for the quarter to 31 December 2022:
-- USF's unaudited NAV at 31 December 2022 was $320.0 million or
$0.963 per Ordinary Share, marginally lower than the 30 June 2022
NAV of $321.2 million or $0.967 per Ordinary Share. While the
portfolio experienced an overall fair value uplift, this was offset
by dividends paid, operating costs and US tax losses (deferred tax
liabilities arising from an increase in asset valuations) resulting
in the reduction in NAV.
-- The portfolio fair value uplift was driven by a modest uplift
in electricity price forecasts and improved operating cost
assumptions which more than offset the impact of increased discount
rates driven by sustained higher interest rates.
-- During the period, the portfolio produced 168GWh (including
reimbursed curtailment), bringing the total production for 2022 to
904GWh. Generation for 2022 remained within the expected range of
annual variance. We continue to see the benefits of a high-quality,
diversified portfolio as assets largely continued performing well
with their long-term PPAs. The distribution of assets across
different locations gave the portfolio the benefit of varying
weather conditions, mitigating volatility from any particular event
or local weather trend throughout the year. Dividends paid during
2022 remained cash covered.
-- 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 13.8 years as of 31
December 2022, and all PPA counterparties are investment-grade
(S&P rated A to BBB).
-- The Company paid its Q3 2022 dividend of 1.52 cents per
Ordinary Share on 6 January 2023. The dividend is consistent with
the Company's target full year dividend of 5.58 cents per Ordinary
Share.
-- Dividend cover for the twelve months to 31 December 2022 was 1.20x.
-- In October 2022, USF's Board announced that it was
undertaking a strategic review of the options available to the
Company to maximise value for shareholders (Strategic Review) and
that it expected to conclude the Strategic Review by the end of Q1
2023. The Strategic Review is considering all options available to
the Company including a sale of the entire Company, a sale of the
Company's portfolio assets, or changing the Company's investment
management arrangements.
-- Since the Strategic Review commenced, the Board and its
advisors have engaged with a significant number of parties and,
following receipt of indicative proposals, have shortlisted several
parties who have proceeded to the next phase of the Strategic
Review process. In order to provide the shortlisted parties with
the requisite time to finalise their due diligence and submit
binding proposals, the Board now expects to update shareholders on
the outcome of the Strategic Review within the next six to eight
weeks.
Highlights post period end:
-- In January 2023, the Company announced that MN8, a renewable
energy business formerly known as Goldman Sachs Renewable Power
LLC, had exercised its purchase option over USF's 50% interest in
the 200MW(DC) Mount Signal 2 asset, with financial close expected
to occur in Q2 2023. The sale will generate total proceeds
(including the option fee) of $53.2 million and implies a gross
return of 11% per annum since USF announced the agreement to
acquire up to 50% of MS2 from NEW in December 2020. The Company
will update shareholders regarding use of proceeds at the
conclusion of the Strategic Review (or the financial close of the
MS2 sale if earlier).
The NAV update and the Company's factsheet for Q4 2022 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 .
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 USF@kl-communications.com
Charlotte Francis
Millie Steyn
About US Solar Fund plc
US Solar Fund plc, established in 2019, is listed on the premium
segment of the London Stock Exchange. 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 543 MW(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 1.2GW(DC) .
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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END
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