REG-BlackRock Energy and Resources Income Trust Plc: Portfolio Update
18/06/2025 11:00
BLACKROCK ENERGY AND RESOURCES INCOME TRUST plc (LEI:54930040ALEAVPMMDC31)
All information is at 31 May 2025and unaudited.
Performance at month end with net income reinvested
One Three Six One Three Five
Month Months Months Year Years Years
Net asset value 4.3% -4.4% -10.0% -8.8% -2.6% 125.1%
Share price 5.5% -3.4% -6.5% -5.1% -12.6% 147.9%
Sources: Datastream, BlackRock
At month end
Net asset value – capital only: 120.90p
Net asset value cum income 1 : 121.86p
Share price: 111.00p
Discount to NAV (cum income): 8.9%
Net yield: 4.1%
Gearing - cum income: 7.9%
Total assets: £142.4m
Ordinary shares in issue 2 : 116,844,497
Gearing range (as a % of net assets): 0-20%
Ongoing charges 3 : 1.15%
1 Includes net revenue of 0.96p. 2 Excluding 18,741,697 ordinary shares held in treasury. 3 The Company’s ongoing charges are calculated as a percentage of average daily net assets and using the management fee and all other operating expenses excluding finance costs, direct transaction costs, custody transaction charges, VAT recovered, taxation and certain other non-recurring items for the year ended 30 November 2024. In addition, the Company’s Manager has also agreed to cap ongoing charges by rebating a portion of the management fee to the extent that the Company’s ongoing charges exceed 1.15% of average net assets.
Sector Overview
Mining 40.7%
Energy Transition 29.3%
Traditional Energy 29.3%
Net Current Assets 0.7%
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100.0%
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Sector Analysis % Total Assets^ Country Analysis % Total Assets^
Mining: Global 50.5
Diversified 21.2 United States 19.5
Copper 6.1 United Kingdom 6.2
Gold 3.2 Latin America 6.2
Industrial Minerals 2.8 Canada 6.1
Aluminium 2.6 Germany 3.1
Steel 1.6 Italy 2.5
Platinum Group Metals 1.2 Australia 2.4
Uranium 1.1 South Africa 1.2
Nickel 0.9 Other Africa 1.0
Subtotal Mining: 40.7 Ireland 0.6
Net Current Assets 0.7
-----
100.0
Traditional Energy:
Integrated 11.7
E&P 7.8
Oil Services 6.3
Distribution 3.5
Subtotal Traditional Energy: 29.3
Energy Transition:
Electrification 9.5
Renewables 7.1
Energy Efficiency 7.1
Storage 5.1
Transport 0.5
Subtotal Energy Transition: 29.3
Net Current Assets 0.7
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100.0
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^ Total Assets for the purposes of these calculations exclude bank overdrafts, and the net current liabilities figure shown in the tables above therefore exclude bank overdrafts equivalent to 8.7% of the Company’s net asset value.
Ten Largest Investments
Company Region of Risk % Total Assets
Vale - ADS Latin America 5.9
Anglo American Global 5.4
Exxon Mobil Corp Global 4.9
Rio Tinto Global 4.7
Shell Global 3.9
NiSource United States 3.3
Abaxx Technologies Global 2.9
Elia Group Germany 2.6
Norsk Hydro Global 2.6
SSE United Kingdom 2.5
Commenting on the markets, Tom Holl and Mark Hume, representing the Investment Manager noted: The Company’s NAV rose 4.3% in May (in GBP terms). Global equity markets rose in May with an announced agreement between the US and China to reduce tariffs for 90 days. The US stock market was further supported towards the end of the month after the US announced a delay to implementation of higher tariffs on the EU and a US legal challenge to the recently announced US import tariffs. The House of Representatives passed the ‘One Big Beautiful Bill Act’ (OBBBA), which would potentially increase the size of primary deficit, adding to US debt and interest obligations. Longer-dated US Treasury yields rose during the month, whilst the US dollar index moved lower. The market rise was led by US technology stocks, notably megacaps and by banks, whilst sectors with perceived resilient earnings, such as healthcare and utilities, lagged the market rise. Global equity markets represented by the MSCI All Country World Index returned 5.7% in May 2025. Within the sustainable energy theme, during May, we received partial clarity on US energy policy, initially in the form of the Draft Reconciliation Bill, and subsequently the OBBBA, which narrowly passed through the House of Representatives at the end of the month. The Act remains subject to approval and modification by the Senate, with July 4th being the target date for their decision. Finally, the Senate and House will have to reconcile their two bills into one for a final vote in both chambers. While the Act as it stands does propose to phase out key tax credits for clean power generation, it demonstrates a level of energy pragmatism that many were not anticipating based on the negativity priced into the equities prior to its announcement. The Act suggests that support for utility-scale renewables development will remain largely intact, including a proposal that investment / production tax credits for new renewable energy projects will remain in place through December 2028. Several US technology firms announced AI deals in the Middle East, including a $600m commitment from Saudi Arabia to US companies including Nvidia. Turning to the energy sector, early in the month, OPEC+ announced a further >400kbpd increase in previously curtailed production, which may increase oil price volatility in the near-term. We also saw two well-capitalized US E&P companies, Diamondback Energy and Coterra Energy, announce that they would drop rigs in the Permian basin on concerns of falling oil prices. The 90-day delay on tariffs, on the other hand, contributed to a modest reprieve in oil prices during the month. The Brent oil price rose +1.5%, whilst the WTI oil price rose +3.2%, ending the month at $64/bbl and $61bbl respectively. The US Henry Hub natural gas price rose +3.3% during the month to end at $3.46/mmbtu. Mining equities posted performance in May, albeit lagging broader equity markets, represented by the MSCI All Country World Index, which rose 5.7%. Mined commodity performance was mixed: prices for iron ore (62% Fe) and nickel fell by 1.6% and 1.2% respectively, whereas the copper price increased by 4.7%. The copper market appears to have notably tightened evidenced by a significant decline in inventories in China. Within precious metals, the gold price decreased by 0.7%, whilst the silver and platinum prices rose by 1.0% and 10.2% respectively. Reduced geopolitical and economic uncertainty contributed to the gold price easing.
However, increased hybrid vehicle penetration drove strong demand for platinum, where we have also seen supply-side constraints become apparent. All data points in US dollar terms unless otherwise specified. Commodity price moves sourced from Thomson Reuters Datastream. 18 June 2025
ENDS
Latest information is available by typing www.blackrock.com/uk/beri on the internet, "BLRKINDEX" on Reuters, "BLRK" on Bloomberg or "8800" on Topic 3 (ICV terminal). Neither the contents of the Manager’s website nor the contents of any website accessible from hyperlinks on the Manager’s website (or any other website) is incorporated into, or forms part of, this announcement.
Release (https://mb.cision.com/Main/22395/4165950/3512835.pdf)
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