Bluefield Solar’s NAV as at 31 March 2023 was £850.2m or 139.1p per share, 3.3p down on the end December NAV of 142.4p. The NAV total return for the quarter was -2.3%. The main reason for this was the recent falls in power prices (linked to falling natural gas prices).
The NAV includes the published power curve forecasts, available at 31 March 2023, from the company’s three leading independent power forecasters, all of which have lower price forecasts for the near term compared to the previously published power curves. Changes to these curves took 1.6p off the NAV. Operational updates accounted for 0.8p of the fall. These weren’t specified but we can speculate that the dire weather we have been having in the UK might have affected solar output. The other negative (1.5p) relates to continued investment in the company’s development pipeline (1.40GW comprised of 955MW of solar and 444MW of storage) and the construction of Yelvertoft (a CfD-backed 48MWp solar photovoltaic project in Northamptonshire). Working capital and other make up the balance of the NAV change, adding 0.6p.
The statement says that the company remains on track to pay total dividends of not less than 8.4p for the financial year ended 30 June 2023. It also says that this is expected to be covered by earnings and is post debt amortisation.
[Both Octopus Renewables and Foresight Solar announced small falls in their NAVs on the back of lower near term power prices last week. We don’t think that this is anything to be concerned about and it is definitely welcome news for UK households.]
BSIF : Bluefield Solar NAV off highs on power price fall