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Power price hit to Foresight NAV

Power price hit to Foresight NAV – Foresight Solar Partners has announced results for the year ended 31 December 2020. Highlights are:

  • Global portfolio generated 969,564 MWh of clean electricity. This is enough to power 334,000 homes and helped to avoid 749,000 tonnes of carbon emissions.
  • The NAV fell to £582.2m (31 Dec 2019: £628.0m) and the NAV per share fell to 95.8p (31 Dec 2019: 103.8p). This was driven predominantly by a downwards revision in long-term UK and Australian power price forecasts.
  • Strong operational performance of the UK portfolio, 8.4% above budget. This was a result of high irradiation and asset availability, despite the operational challenges of COVID-19.
  • Bought four subsidy-free assets in Spain with a generating capacity of 125 MW. These deals represented the company’s first investments in unsubsidised solar.
  • Portfolio now comprises 58 assets with a total generating capacity of 994MW across the UK, Australia and Spain.
  • Declared dividends of 6.91 pence per share for the year, with an increased FY2021 target dividend of 6.98 pence per share.
  • Shareholders recently approved a change to the investment policy to allow an allocation of up to 10% of the portfolio in battery storage systems.

The power price hit was worse than it looks. The statement says that the effect of falling long term power price forecasts was to take about 13.p off the NAV. A reduction in the discount rate used to value the company’s assets (from 7.0% to 6.5%) offset that.

In this year’s results, the company still generated enough cash to cover its dividend 1.11 times.

FSFL : Power price hit to Foresight NAV

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