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Foresight Solar achieves strong performance following its first battery storage investment

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Foresight Solar achieves strong performance following its first battery storage investment – Foresight Solar (FSFL) has posted its full-year results for the 12 months to 31 December 2021. During the period under review, its NAV increased to £660.0m, driven by strong UK power prices, above budget inflation and a reduction in discount rates, resulting in a 12.9% increase in NAV per share to 108.2 pence ; and total NAV return for the year, assuming reinvest of dividends paid, of 21.4%.

Although the Australian portfolio experienced challenges with low irradiation, curtailment and negative pricing resulting in electricity generation for the year being 20.7% below budget, the situation is expected to improve in the first half of 2022 as specific grid issues are resolved.

A fourth interim dividend, in respect of the period 1 October 2021 to 31 December 2021, of 1.745 pence per ordinary share has been declared. The shares will go ex-dividend on 21 April 2022 and the dividend will be paid on 27 May 2022 to shareholders on the register as at the close of business on 22 April 2022. Foresight Solar confirms that this final interim for 2021 achieves its dividend target of 6.98 pence per ordinary share for the 2021 financial year.

Statement from the chair:

I am pleased to report a strong performance by Foresight Solar in 2021. We made good progress on our strategy of revenue and geographic diversification and further enhanced our sustainability efforts, while a total NAV return for the year of 21.4% and earnings per share of 19.7% were significantly ahead of budget and represent an excellent financial performance.  Strong cash generation meant that we have been able to comfortably pay our target dividend, as we have done every year as a listed company, and I am pleased to announce an increased dividend target for 2022 of 7.12 pence per share that also benefits from improved dividend cover.

We made our first battery storage investment last year, and our UK solar portfolio delivered another year of solid operational performance.  Portfolio performance in Australia is expected to improve in the first half of 2022 as specific external factors which negatively impacted operations last year fall away.  In Spain, we have made good progress on our subsidy-free solar projects which are expected to become fully operational and to contribute to portfolio generation in the first half of this year.

Sustainability has always been central to everything we do and, following an assessment of our entire portfolio, I am pleased to say that 100% of our assets are fully aligned with the EU Taxonomy’s criteria for sustainable activities.   Looking forward, we can see a strong pipeline of solar projects and opportunities in the UK and Spain, as well as a burgeoning market for corporate PPAs, while on the battery storage front we are reviewing a stream of greenfield projects being brought to the market.  It’s an exciting pipeline of opportunities which, along with the ongoing global transition to renewable energy and our proactive hedging strategy, gives us confidence for 2022 and beyond.

FSFL : Foresight Solar achieves strong performance following its first battery storage investment

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