NextEnergy Solar Fund reports that its NAV per share increased from 98.5p on 31 March 2016 to 102.0p as at 30 September 2016. The NAV return was 8.3%. Reported profit for the period ended 30 September 2016 was GBP25.3m and earnings per share were 8.46p. During the period the share price increased from 97.75p to 106.13p and the return to shareholders was 13.1%. they say they are on track to achieve a target of 6.31p total dividend distribution for the full year ending 31 March 2017, in quarterly instalments. They paid a first quarterly dividend of 1.5775 pence per share for the three months to 30 June 2016 on 30 September 2016 and a second quarterly dividend of 1.5775 pence per share is to be paid at the end of December 2016.
Operating costs amounted to GBP2.0m, in line with expectations. The statement breaks down the operating performance of each of their solar plants which, for the sake of brevity, we have not reproduced here.
In the previous financial year NextEnergy Solar was affected by the continuing decline of the market price for electricity which began in 2015, however in the current financial period prices started increasing, signalling a potential improvement in the power price market in the future. They have revised power price forecasts to take current market conditions into account, increasing our forecasts by an average 4.5% over the forecasting term. The weighted average discount rate remains unchanged at 30 September 2016 being 7.7%.
The portfolio comprises 33 solar PV plants, located across 17 different counties of England and Wales. The largest one represents 9% of the total installed capacity and the four largest solar PV plants represent together 28% of the total installed capacity. In addition, the portfolio is diversified across 16 non-connected contractors, 12 different Tier 1 solar panel manufacturers and eight Tier 1 inverter manufacturers.
NESF : NextEnergy Solar NAV climbs as power prices rise