NextEnergy Solar Fund Limited Net Asset Value(s) (1905N)
28 January 2016 - 6:00PM
UK Regulatory
TIDMNESF
RNS Number : 1905N
NextEnergy Solar Fund Limited
28 January 2016
28 January 2016
NextEnergy Solar Fund Limited (the "Company")
Net Asset Value Update
-- NAV as at 31 December 2015 of GBP275.2m (30 September 2015: GBP289.0m)
-- NAV per share of 99.0p (30 September 2015: 104.0p)
-- Interim dividend of 3.125p per share paid on 18 December 2015
-- Power price forecasts reduced to reflect volatile market conditions
-- Asset revaluations post-acquisition and performance and
portfolio improvements mitigated effect of
lower power price forecasts
-- Reaffirmed dividend target of 6.25p per share (including
3.125p interim) for current financial year
NESF, the specialist investment company that invests in
operating solar power plants in the UK, announces its Net Asset
Value ("NAV") as at 31 December 2015.
The Company's NAV was GBP275.2m as at 31 December 2015, compared
to GBP289.0m as at 30 September 2015. The NAV per share amounted to
99.0p as at 31 December 2015, compared to 104.0p as at 30 September
2015.
The change in NAV per share was mainly due to a downward
revision of the Company's power price forecasts as well as the
payment of an interim dividend on 18 December 2015. The impact of
these factors was mitigated by an increase in valuation of new
assets included in the NAV, and improvements in specific assets and
the operating performance of the portfolio.
NESF has revised its power price forecast downwards by an
average of 6.1% over a 20-year period from the forecast used for
the 30 September 2015 NAV. The reduction in the power price
forecast accounts for a reduction in NAV of almost GBP10.0m (c.3.4%
of 30 September 2015 NAV). The NAV also declined due to the interim
dividend totalling GBP8.7m (3.125p per share) paid to shareholders
on 18 December 2015.
During the period 30 September 2015 to 31 December 2015, the
Company's portfolio of assets increased from 19 to 25, of which
four are still valued at cost. At 31 December, NESF's portfolio
amounted to c.276MW spread over the 25 assets. In January 2016, the
Company increased the portfolio to c.329MW over 28 assets.
Between 30 September 2015 and 31 December 2015, the portfolio
performed satisfactorily, albeit with significantly lower
irradiation levels registered across the asset base compared to the
previous year. During the period NESF improved selected commercial
terms for Glebe Farm, its largest asset, which lead to a positive
NAV impact of 1.2p per share taking into account the reduced power
price forecasts.
In addition, the valuation of two new assets at market value
contributed positively to the Company's NAV. The Company did not
revise other key NAV valuation drivers, such as the discount rate
(currently 7.5%) or its inflation forecasts.
NESF has posted the Company's updated factsheet on its website
today.
Kevin Lyon, Chairman of NESF, commented:
"We have continued to grow the Company's asset base deploying
the equity raised as well as the financial debt secured. In
conjunction with this growth, the Company has focused on its
existing portfolio with a view to extracting further value where
possible. These core activities have enabled us to mitigate the
impact of further reductions in our power price forecasts resulting
from a variety of external factors, including weather and commodity
related developments as well as demand drivers.
"We continue to assess acquisition targets from among our large
pipeline of growth opportunities, with the intention of securing
the most attractive projects identified.
"NESF expects to continue paying its dividends from operating
cash flows in line with previous guidance, with a target of 6.25p
per share for the current financial year, of which 3.125p was paid
to shareholders as an interim dividend in December 2015. We
continue to invest excess cash generated by the portfolio in the
Company's operations."
For further information:
NextEnergy Capital Limited 020 3239 9054
Michael Bonte-Friedheim
Aldo Beolchini
Cantor Fitzgerald Europe 020 7894 7667
Sue Inglis
Shore Capital 020 7408 4090
Bidhi Bhoma
Anita Ghanekar
Macquarie Capital (Europe)
Limited 020 3037 2000
Ken Fleming
Nick Stamp
MHP Communications 020 3128 8100
Andrew Leach
Jamie Ricketts
Gina Bell
Notes to Editors:
NextEnergy Solar Fund (NESF)
NESF is a specialist investment company that invests in
operating solar power plants in the UK. Its objective is to secure
attractive shareholder returns through RPI-linked dividends and
long-term capital growth. The Company achieves this by acquiring
solar power plants on agricultural, industrial and commercial
sites.
NESF has raised equity proceeds of GBP285.4m since its initial
public offering on the main market of the London Stock Exchange in
April 2014. It also has credit facilities of GBP168.1m in place
(Macquarie: GBP100m, Bayersiche Landesbank: GBP45.4m and NIBC:
GBP22.7m).
NESF is differentiated by its access to NextEnergy Capital Group
(NEC Group), its Investment Manager, which has a strong track
record in sourcing, acquiring and managing operating solar assets.
WiseEnergy is NEC Group's specialist operating asset management
division, providing solar asset management, monitoring and other
services to over 1,200 utility-scale solar power plants with an
installed capacity in excess of 1.5 GW.
Further information on NESF, NEC Group and WiseEnergy is
available at www.nextenergysolarfund.com, 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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