NextEnergy Solar delighted with operational performance


NextEnergy Solar Fund Limited (LON:NESF) said electricity generation from its portfolio has been 8.1% above budget year to date.

This additional power has added GBP5mln to revenues, said the FTSE 250 fund, while its active management and power prices strategies had added a further GBP7mln.

Net asset value for the three months to end December rose to 100.7p (30 September 2020: 99.6p), with net equity rising to GBP591mln (30 September 2020: GBP583.5m)

A second interim dividend of 1.7625p per ordinary share was declared for the year ending 31 March 2021 (31 March 2020: 1.7175p)

Next Energy added that currently it has 763 MWp total capacity installed across 91 operating solar assets with all budgeted generation hedged for the financial year to March 2021 and 83% for the year to March 2022.

Kevin Lyon, NextEnergy Solar Fund Chairman, said: “I am pleased that, following what has been an extremely challenging period for all, NESF can present an increase in NAV.

“NESF entered the final quarter of this financial year in a very strong position, having secured attractive prices for the totality of expected generation this current financial year, plus a significant portion of expected generation for 2021/22.

Michael Bonte-Friedheim, chief executive, added: “The successful active management of NESF’s assets in the year was clear as the group enjoyed above-budget electricity generation, good asset management alpha from our portfolio management, and a significant cash benefit from our power price contract fixes.

“Progress towards our subsidy-free goal of 150 MWp is on track as NESF continues to lead the market in a transition to a subsidy-free model in the UK and beyond.”

Broker Numis added that the recent market updates from The Renewables Infrastructure Group (TRIG) and NESF continue to highlight the strong demand for generating assets, leading to further discount rate compression.

NESF shares are currently trading on the lowest rating of the listed renewable funds at a premium of 0.4% which compares with a sector average premium of 14% for the more mature funds.

“We believe the market may take some comfort from the guidance on its relatively strong hedge position for the forthcoming financial year ending 31 March 2022, and the shares could see upward pressure from current levels.”

Shares rose 0.8% to 101.2p.

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