Foresight Solar Fund Limited Q3 2021 NAV, Operational and Gearing Update (9943Q)
02 November 2021 - 6:00PM
UK Regulatory
TIDMFSFL
RNS Number : 9943Q
Foresight Solar Fund Limited
02 November 2021
2 November 2021
Foresight Solar Fund Limited (the "Company")
Q3 2021 Net Asset Value ('NAV'), Operational and Gearing
Update
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 September 2021
its unaudited Net Asset Value was GBP635.0 million (30 June 2021:
GBP596.4 million), resulting in a NAV per Ordinary Share of 104.1
pence (30 June 2021: 98.0 pence per share).
The increase in NAV during the third quarter is the result of
several factors. The most significant was a reduction in discount
rates applied to the UK operational portfolio from 6.5% to 6.0%,
resulting in a NAV increase of approximately 3.3 pence per share.
The revised discount rate is considered an accurate rate for the
operational portfolio based on data points from recent market
transactions and the opinion of the Investment Manager.
Other relevant NAV movements include a further upward revision
in power price forecasts as high gas prices and low wind power
generation in the UK led to a significant increase in near term
wholesale power prices. This increase, based upon forecasts from
three independent consultants available as at 30 September 2021,
resulted in a positive impact on NAV for the quarter of
approximately 1.5 pence per share.
Alongside the power price forecasts, the UK portfolio has also
benefitted from the exposure to merchant revenues at a time of
exceptionally high power prices. This is the primary driver behind
the actual cash generated by the projects being ahead of budget,
which has delivered a positive uplift of 0.7 pence per share.
Additionally, the Company has entered into further fixed price
offtake agreements for the UK portfolio that have been secured at
prices above forecast, delivering an increase in NAV of
approximately 0.5 pence per share.
During the period the Company also revised the assumption for
useful economic lives on the Australian assets from 30 years to 40
years where this is within the restrictions of the lease. This
aligns the Australian assets with the UK portfolio and delivered a
further 0.7 pence per share to the NAV.
The Gross Asset Value ("GAV"), including Company and
subsidiaries, as at 30 September 2021, was GBP1,106.3 million (30
June 2021: GBP1,057.2 million).
Operational Update
Total revenue for the Company portfolio for the same period was
14% ahead of budget, supported by the significant increase in UK
merchant power prices during the period.
Electricity generation for the Company portfolio was 3.2% below
base case for the 9-month period to the end of September, driven by
underperformance of the Australian assets as a result of grid
outages on the network combined with lower than forecast
irradiation.
Gearing Update
The Company's total outstanding debt as of 30 September 2021 was
GBP471.3 million, including long-term debt of GBP371.3 million and
revolving credit facilities of GBP100.0 million.
The total outstanding long-term debt of GBP371.3 million
represents approximately 33.6% of GAV of the Company and
Subsidiaries as at 30 September 2021.
The total outstanding debt including revolving credit facilities
of GBP471.3 million represents approximately 42.6% of GAV of the
Company and Subsidiaries as at 30 September 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.
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
Lucy Gibbs
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END
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