TIDMNESF
RNS Number : 2055C
NextEnergy Solar Fund Limited
15 January 2015
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR
INDIRECTLY, IN OR INTO THE UNITED STATES, CANADA, AUSTRALIA, JAPAN,
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UNLAWFUL OR RESTRICTED BY LAW OR TO US PERSONS (WITHIN THE MEANING
OF REGULATION S UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS
AMENDED).
15 January 2015
NextEnergy Solar Fund Limited (the "Company")
Quarterly Trading Statement
Highlights
Three Months Ended 31 December 2014
-- Placing programme established in November 2014 to issue up to
250,000,000 shares; 95,000,000 ordinary shares subsequently issued
raising gross proceeds of GBP99.6m.
-- Net assets increased from GBP88.3m to GBP181.2m as at 31
December 2014, resulting in NAV per ordinary share of 100.3p (30
September 2014: 103.1p, or 100.5p excluding interim dividend).
-- Interim dividend of 2.625p per ordinary share for period
ended 30 September 2014 declared in November 2014 and paid on 17
December 2014.
-- Conditional agreements entered into to acquire four solar
power plants with aggregate energy capacity of 57 Megawatts Peak
("MWp") and total acquisition value of up to GBP65.0m, with all
plants expected to be accredited under 1.4 Renewable Obligation
Certificate ("ROC") regime.
-- At 31 December 2014, portfolio comprised eleven assets with
aggregate capacity of c.124MWp and total investment value of
c.GBP145m (c.79% of equity proceeds raised since IPO).
Post 31 December 2014
-- Completed acquisition of Gover Farm and acquisitions of
Bilsham and Brickyard expected to complete during January 2015.
These assets have, in aggregate, capacity of 25.7MWp and
acquisition value of GBP29.9m (as these assets are operational at
completion, they will be valued based on discounted cash flows,
rather than cost, which is expected to be incremental to NAV per
ordinary share as at 31 January 2015).
-- Board is pursuing a further issue of new ordinary shares
under the previously announced Placing Programme to take advantage
of its large pipeline of attractive investment opportunities, with
share issue expected to take place in February 2015 and issue price
based on the NAV per ordinary share as at 31 January 2015.
Outlook
-- On course to deliver target dividend of 5.25p per ordinary
share in respect of its first financial year ending 31 March 2015
and, thereafter, annual dividends of, in aggregate, 6.25p per
ordinary share (adjusted subsequently on an annual basis in direct
proportion to variations in RPI).
-- Strong pipeline of assets available for acquisition: total
capacity of c.174MWp with investment value of c.GBP237m secured
(through letters of intent giving Company exclusivity for defined
period), the majority of which are expected to be accredited under
1.4 ROC regime.
Financial Information (As at 31 December 2014)
Net assets GBP181.2m
NAV per ordinary share 100.3p
Market capitalisation GBP187.4m
Share price 103.75p
Share price premium to
NAV 3.4%
----------------------- ---------
At 31 December 2014, including cash on hand and the Revolving
Credit Facility, NESF had available liquidity of GBP128.0m, of
which GBP79.4m was allocated to announced investments. The Company
had no financial debt outstanding as at 31 December 2014.
Investment Activity and Performance
During the quarter ended 31 December 2014, the Company entered
into agreements to purchase four solar power plants (Condover, Cock
Hill, Llwyndu and Boxted Airfield) with an aggregate capacity of
57.6MWp and an aggregate consideration of up to GBP65.0m.
Construction of each of these plants is underway and they are all
expected to become operational by 31 March 2015. Accordingly, these
plants are expected to be accredited under the 1.4 ROC regime. The
Company has the right to withdraw, without incurring any financial
penalties, from acquiring any plant in the event that it is not
eligible for the contracted ROC regime.
In addition, during the period share purchase agreements
covering two projects amounting to a total of 32.9MWp and GBP37.1m
were signed by NextPower Development Limited (the "Developer"). The
Company has the right to acquire the two plants at unchanged terms
and conditions, with no consideration payable to the Developer.
The Company's operational portfolio performed satisfactorily
over the course of 2014. Irradiation was significantly lower than
expected during the months of October and November. However,
overall, recorded solar irradiation was 2.1% above predicted levels
and recorded electricity generation was 3.4% above expectations.
Revenues were also above expectations.
The Investment Manager continues to carefully monitor
developments in the UK power market, in particular as it pertains
to the market price of electricity. Recent factors influencing the
electricity market prices include, inter alia, the
warmer-than-usual weather conditions, declining hydrocarbon (oil
and gas) prices in the UK and beyond, regulatory developments as
well as changes to the country-wide portfolio of
electricity-generating power plants. The Investment Manager has
noted the recent weakening in the spot and forward electricity
prices, and continues to design the Company's electricity sales
strategy to secure the highest prices achievable while maintaining
adequate flexibility.
Portfolio at 31 December 2014
Operating Assets
Valuation
Capacity Cost(1) at 31-Dec-14
Power Plant Acquired ROC Regime (MWp) (GBPm) (GBPm)
Ellough
(Suffolk) 27-Jul-14 1.6 14.9 18.0 19.0
Shacks Barn
(Silverstone,
Northants) 8-May-14 2.0 6.3 8.2 9.5
Higher Hatherleigh
(Wincanton,
Somerset) 30-Apr-14 1.6 6.1 7.3 8.5
-------- -------- --------------
Total 27.3 33.5 37.0
------------------------------- ---------- -------- -------- --------------
(1) Including acquisition price paid to 31 December 2014,
expenses and working capital requirements.
Assets in Construction for, or Secured by, the Company(1)
Acquisition
Price
Capacity (Max.)
(GBPm) Completion
Power Plant Operational ROC Regime (MWp) (3) of Acquisition
Cock Hill
(Wiltshire) Mar-15(2) 1.4 20.0 23.3 Apr-15(2)
Boxted Airfield
(Essex) Feb-15(2) 1.4 18.8 20.6 Mar-15(2)
Poulshot
(Trowbridge,
Wiltshire) Mar-15(2) 1.4 14.5 15.6 Mar-15(2)
Bilsham
(Bognor Regis,
Sussex) Nov-14 1.4 12.5 15.2 Jan-15(2)
Condover
(Shropshire) Mar-15(2) 1.4 10.2 11.7 Apr-15(2)
Gover Farm
(Truro, Cornwall) Oct-14 1.4 9.4 10.7 Jan-15
Llwyndu
(Mid-Wales) Mar-15(2) 1.4 8.0 9.4 Apr-15(2)
Brickyard
(Leamington
Spa, Warwick) Nov-14 1.4 3.8 4.0 Jan-15(2)
Total 97.2 110.5
--------------------------------- ---------- -------- ----------- ---------------
(1) Projects secured by the Company through executed share
purchase agreements. Completion of acquisitions is subject to
contractual conditions, including, inter alia, on-time completion
of construction.
(2) Target.
(3) Including expenses and working capital requirements
Since 31 December 2014, the Company has completed the
acquisition of Gover Farm and expects to complete the acquisitions
of Bilsham and Brickyard during January 2015 with, in aggregate,
capacity of 25.7MWp and acquisition value of GBP29.9m. NESF has
contractual rights to all revenues generated by the three plants
from their operational date. As these assets are operational at
completion, they will be valued based on discounted cash flows
(rather than cost), which is expected to be incremental to the NAV
per ordinary share as at 31 January 2015.
Assets Secured by the Developer and Available to the
Company(1)
Acquisition
Price Completion
Capacity (Max.) of
Power Plant Operational ROC Regime (MWp) (GBPm) Acquisition
Lagenhoe
(Essex) Feb-15(2) 1.4 21.2 22.9 Mar-15(2)
Hawkers Farm
(Somerset) Mar-15(2) 1.4 11.7 14.2 Jun-15(2)
-------- -----------
32.9 37.1
-------------------------- ---------- -------- ----------- -------------
(1) Projects secured by the Developer through executed share
purchase agreements. Completion of acquisitions is subject to
contractual conditions, including, inter alia, on-time completion
of construction. The Company has the right to acquire these plants
at unchanged terms and conditions, with no consideration payable to
the Developer.
(2) Target.
Investment Pipeline
The Company's investment pipeline of opportunities secured by
letters of intent amounts to ten projects, for a total capacity of
c.174MWp (including the two transactions already signed by the
Developer referred to above). The estimated investment value of the
entire secured pipeline totals c.GBP237m.
This pipeline comprises assets secured from a variety of
counterparts and located across southern England. The majority of
assets is expected to be accredited under the 1.4 ROC regime, with
one asset expected to be accredited under the 1.6 ROC regime. The
secured assets also include a portfolio of operating commercial and
residential rooftop sites accredited under the Feed-in-Tariff
("FiT") regime. Two other projects in the pipeline are operational.
Construction activities are underway on most of the remaining
projects in the pipeline.
Outlook
The Investment Adviser, NextEnergy Capital Ltd, continues to
evaluate a broad set of incremental investment opportunities for
the Company. These investment opportunities mainly comprise assets
accredited or expected to be accredited under regimes including ROC
(1.6, 1.4 and 1.3 ROCs), FiT and Contracts for Difference
("CfD").
These new-build opportunities include ground-based projects
below 5MWp which can qualify for ROC or FiT accreditation, as well
as rooftop portfolios qualifying for FiT treatment. The Company is
also in discussions with partners seeking to accredit and construct
large-scale projects under the new CfD regime.
The Company is also pursuing utility-scale operating projects
constructed previously under the ROC and FiT regimes as well as
presently being constructed under current regulation.
Considering the number and overall size of projects pursued and
on-going developments in the market, the Board believes the Company
will continue to expand its portfolio of assets acquired after
March 2015.
Placing Programme
Shareholders approved the establishment of a placing programme
to issue up to 250,000,000 shares at a general meeting of the
Company held on 4 November 2014. 95,000,000 ordinary shares have
been issued under the placing programme, raising gross proceeds of
GBP99.6m.
The Board is pursuing a further issue of new ordinary shares to
allow the Company to take advantage of its large pipeline of
attractive investment opportunities. It is expected that this issue
will take place in February 2015 and that the issue price will be
based on the unaudited NAV per ordinary share as at 31 January
2015. A further announcement will be made in due course.
Enquiries:
NextEnergy Capital Limited 020 3239 9054
Michael Bonte-Friedheim
Aldo Beolchini
Cantor Fitzgerald Europe (Financial Adviser and Joint Lead Bookrunner) 020 7894 7667
Sue Inglis (Corporate Finance)
Andrew Worne / Andrew Davey / Tom Dixon (Sales)
Shore Capital (Sponsor and Joint Bookrunner) 020 7408 4090
Bidhi Bhoma
Anita Ghanekar
Patrick Castle
Macquarie Capital (Europe) Limited (Joint Lead Bookrunner) 020 3037 2000
Ken Fleming
Nick Stamp
MHP Communications 020 3128 8100
Andrew Leach
Jamie Ricketts
Gina Bell
Notes
This announcement does not constitute or form part of any offer
to issue or sell, or any solicitation of any offer to subscribe or
purchase, any securities in the Company in any jurisdiction, nor
shall it (or any part of it or the fact of its distribution) form
the basis of, or be relied on in connection with, any contract
therefor or investment decision is respect of any such securities.
Without prejudice to the foregoing generality, this announcement
does not constitute a recommendation regarding any securities. Any
decision to purchase or subscribe for shares in the Company must be
made exclusively on the basis of the prospectus published by the
Company on 10 November 2014 (and any supplement thereto) in
connection with its placing programme.
Unless otherwise noted, the financial information contained in
this announcement is unaudited. The information contained in this
announcement is subject to updating and amendment, and does not
purport to be full or complete. No reliance may be placed for any
purpose on the information contained in this announcement in
connection with the Company or the purchase of any securities in
the Company.
The potential acquisition by the Company of any of the
investments referred to in this announcement is subject, among
other things, to those projects reaching legal completion and to
the Company having conducted satisfactory due diligence in relation
to such investments. There is therefore no guarantee that any of
the investments will be acquired and, if they are, on what
terms.
This IMS contains forward-looking statements that are based on
current expectations or beliefs, as well as assumptions about
future events. Forward-looking statements are not guarantees of
future performance. The Company's actual investment performance,
results of operations, financial condition, liquidity, distribution
policy and the development of its financing strategies may differ
materially from the impression created by the forward-looking
statements contained in this document. Subject to their legal and
regulatory obligations, the Company and its Investment Manager
expressly disclaim any obligations to update or revise any
forward-looking statement contained in this announcement to reflect
any change in expectations with regard thereto or any change in
events, conditions or circumstances on which any statement is
based.
Notes to Editors:
NextEnergy Solar Fund
NextEnergy Solar Fund (www.nextenergysolarfund.com) is a
specialist investment fund focused on operational solar
photovoltaic assets located in the UK. The Company intends to
provide investors with a sustainable and attractive dividend that
increases in line with RPI over the long term and an element of
capital growth through the re-investment of net cash generated in
excess of the target dividend.
Further information on NextEnergy Capital and WiseEnergy is
available at www.nextenergycapital.com and www.wise-energy.eu.
This information is provided by RNS
The company news service from the London Stock Exchange
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