Ecofin Power & Water’s total shareholders’ funds fell by 9.5% and by 8.0% on a total return basis over the six months ended 31 March, 2015. The net asset value per Ordinary Share fell by 12.0% on a reported basis, and by 10.6% on a total return basis. The price of an Ordinary Share declined by 7.0%as the discount to NAV at which Ordinary Shares traded narrowed from 24.2% to 19.8%. The total return per Ordinary Share (the change in the share price plus the dividends received and reinvested) was -4.7%. In this period the MSCI World Index of developed country equity markets rose by 13.4% on a total return basis and in sterling terms. The MSCI World Utility Index rose by 8.9% while the MSCI World Energy Index fell by 9.6% on the same terms over the period.
Six of the company’s ten largest holdings fell in value. The share price of Lonestar Resources Limited, the Company’s largest holding, fell by 33.8% in the fourth quarter as the oil price fell and the decline continued into 2015 resulting in a 58.8% fall overall. Renewable energy holdings and those exposed to China generally did well over the period. French power company Direct Energie, the Company’s sixth largest investment, the US integrated utility and renewable energy developer NextEra Energy, the Company’s third largest holding, and a number of Euro area infrastructure companies including the Spanish infrastructure operators Ferrovial and Acciona, the Swiss airport operator Flughafen Zuerich and the Portuguese renewable energy developer and operator EDP Renovaveis all made positive contributions to performance.
Lonestar has fallen from being 19% of the company’s portfolio in June 2014 to 6% at the end of March 2015 – without them selling any.
ECWO : Ecofin hit hard by Lonestar fall