NextEnergy Solar Fund is moving to quarterly dividend payments

NextEnergy Solar Fund has provided an update for the year ended 31 March 2016, through which it has announced that it is moving to paying quarterly dividends. Going forward, the Company will now pay dividends to shareholders on a quarterly basis, starting from the first quarter of the Company’s current financial year (the year ending 31 March 2017). The first quarterly dividend will cover the period from April to June 2016, and is expected to be declared in September 2016. The second quarterly dividend will cover the period July to September 2016, and is expected to be declared in December 2016. The company says that the subsequent quarterly dividends will follow accordingly.

For the year ended 31 March 2016, NESF expects to declare a second and final dividend of 3.125p per share in June 2016. When added to the first interim dividend of 3.125p, this represents a total yearly dividend of 6.25p per share. The Company says that it intends to increase subsequent dividends in line with the Retail Price Index on a yearly basis, which amounts to 1.0% for the 2016/17 dividend.

At year-end, the Company’s total portfolio amounted to 33 solar plants totalling 414MWp with an invested capital of £480.1m* (31 March 2015: 16 projects totalling c.217MWp and invested capital of £251.6m). NESF’s portfolio of operating solar plants comprised 30 projects totalling 396 MWp with an invested capital of £461.2m. In addition, at year-end the Company had secured three plants via binding contracts: Ellough Phase 2 (8.0MWp, investment value £8.0m), Hall Farm (5.0MWp, investment value £5.0m) and Green Farm (5.0MWp, investment value £5.8m). Post the year-end, the Company completed the acquisition of Hall Farm and it says that it expects to complete the acquisition of Ellough Phase 2 and Green Farm before the end of the first quarter of the current financial year.

The company says that its portfolio generated electricity significantly above their budget for the 2015/16 financial year – total energy generated was 4.1% in excess of targets while solar irradiation recorded across the portfolio was 0.4% above forecasts (2015: 4.8% higher energy generation and 0.4% lower irradiation versus forecasts across the portfolio).

At 31 March 2016, inclusive of the commitments made for acquisitions, the Company says it had drawn down debt totalling £216.6m. Of this, £100.4m was long-term fully amortising debt, while the remainder of £116.2m was drawn under the Company’s short-term credit facilities. The company says that it expects to increase its credit facilities marginally in the first quarter of the current financial year and increase the portion of long-term amortising debt in the portfolio as it refinances its short-term debt facilities.

NextEnergy Solar Fund is moving to quarterly dividend payments :NESF