Bluefield Solar reports 11% jump in NAV – Bluefield Solar Income Fund has published its Annual Report and Financial Statements for the year from 1 July 2016 to 30 June 2017.
Operational Highlights
- The Company delivered total underlying earnings of GBP25.1 million (2016: 20.9 million) in the year and underlying EPS of 7.32 pence (2016: 7.10 pence) and declared a fully covered dividend of 7.25 pps against a target of 7.18 pps (2016: 7.25 pps and a target of 7.07 pps);
- Fully covered debt service including both interest and principal repayment of GBP2.7 million;
- A successful Placement of new shares in October 2016 raised gross proceeds of GBP60.6 million and the Company’s market capitalisation grew to GBP425 million at 30 June 2017;
- During the year ended 30 June 2017, the Company announced 10 acquisitions, consisting of 10 additional plants, financed by total consideration of GBP44.4 million with an estimated combined energy capacity of 40.3 MWp;
- As at 30 June 2017, the Company had a total of 41 large solar assets, 40 micro solar assets and 1 roof top asset, with an estimated combined energy capacity in excess of 441.5 MWp, all of which were operational;
- NAV as at 30 June 2017 was GBP409 million (30 June 2016: GBP308 million), equivalent to a NAV per share of 110.49 pence (30 June 2016: 99.39 pence);
- WACC used for the Directors’ Valuation reduced from 6.6% at 30 June 2016 to 6.15%;
- In September 2016, the Company announced a long term financing agreement between BSIFIL and Aviva Investors. The GBP187 million facility is fully amortising over 18 years and has two tranches: GBP121.5 million is fixed at a cost of 2.875% and GBP65.5 million has a cost of 0.70% plus RPI; and
- The portfolio capacity as at 30 June 2017 will power the equivalent of 133,774 homes and save 189,845 tonnes of CO2 in a year.
Chairman John Rennocks said: “It has been another good year for the Company in which the portfolio has continued to perform well. We have again delivered an above target dividend of 7.25 pence per share and seen a NAV total return of 18% for the year. Following another year of outperformance, our focus remains on optimising our revenue from the existing portfolio in a challenging market and on strong operational management through BSL, who will also actively pursue further value enhancing strategies across our portfolio. Whilst not underestimating the challenge posed by the desire to increase our dividends in line with RPI, we look forward to another successful year, delivering attractive returns to our shareholders.”
The report says that the energy generation of the company’s portfolio over the year was significantly above target. The chairman says that this is a credit to the technical asset management activities of BSL, who have increased the generational outperformance by comparison with levels warranted by the sellers and developers when they were acquired by the company from 1.8% in the previous financial year to 2.6% in 2016/17. he also thinks that it is a reflection of the quality of the portfolio.
BSIF : Bluefield Solar reports 11% jump in NAV