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Foresight Solar edges ahead despite falling power prices

Foresight Solar Fund Limited has published results for the six months ending 30 June 2016. The NAV per Ordinary Share increased to 99.3 pence from 99.0 pence at 31 December 2015. The increase incorporates a 3.7 per cent. fall due to the continued reduction in their power price forecasts. Foresight has incorporated two further falls in the power price since 31 December 2015 following updated reports from independent providers of power price forecasts. The Profit after Tax for the period was ££9.3 million resulting in Earnings per Share of 3.30 pence. On 24 June 2016, the first quarterly dividend of 1.54 pence per share was paid. They say they are on track to deliver the targeted RPI-linked dividend of 6.17 pence for the year ending 31 December 2016.

Lower than expected levels of irradiation, one-off external grid disconnections and isolated non-recurrent incidents meant overall portfolio production was below expectations for the period. When production levels are adjusted for contractual protections and expected compensation, the portfolio performed in line with expectations when compared to the lower than expected levels of irradiation. During the period their 37 MW Bournemouth plant was disconnected from the grid by the Distribution Network Operator, as allowed by the Connection Agreement. The length of the disconnection was extremely unusual and would have continued into the summer were it not for the proactive negotiations of the Asset Manager. If the site had not been disconnected, production across the portfolio would have been in line with the expectations of the Investment Manager for the period, when adjusted for contractual protections and expected compensation.

No new assets were added to the portfolio during the period.

FSFL : Foresight Solar edges ahead despite falling power prices




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