Bluefield Solar’s NAV slipped slightly over the final quarter of 2023, from 136.4p to 136.0p. Higher opeartional costs offset the benefit of recognising the company’s Renewable Energy Guarantees of Origin certificates (REGOs) and slightly higher long term forecast power prices.
The board has reiterated its target dividend for the full year of not less than 8.80p. This represents a dividend yield of 8.9% based on the closing share price of 99p on 14 February 2024. The statement says that the company’s operations remain robust, trading conditions are attractive, and the board expects this year’s dividend to be approximately two times covered.
There will be much more detail in the company’s interim results which are due for publication on 28 February 2024.
The big news today, though, is that the company has allocated £20m to fund share buy backs. The board notes that, adjusting for the first interim dividend , the closing price as at 14 February 2024 represents a discount of 26% to the 31 December 2023 NAV. The buybacks can’t start until after the interim results announcement – the company is in a ‘closed period’ (where it has inside information about what is in the results so is not allowed to deal in its own shares).
BSIF : Bluefield Solar plans £20m buyback