Foresight Solar Fund - Interim Results to 30 June 2023
14/09/2023 07:00
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RNS Number : 3750M Foresight Solar Fund Limited 14 September 2023
14 September 2023
Foresight Solar Fund Limited
("Foresight Solar" or "the Company")
Interim results to 30 June 2023
Foresight Solar, a sustainability-focused fund investing in solar and battery
storage assets in the UK and internationally, announces its results for the
six months ended 30 June 2023.
Highlights
· Net Asset Value (NAV) of £726.6 million (31 December 2022: £771.5
million). The Company's power price hedging strategy and higher inflation
mitigated downward NAV pressure from lower near-term power forecasts and
increased discount rates.
· Global electricity production was 2.8% above forecast, driven by strong
operational performance and good irradiation in the UK and Australia.
· Cash receipts from subsidiaries were strong at £52 million, up 42%
year-on-year, largely due to the Company's active power price hedging
strategy.
· Foresight Solar is commencing a divestment programme of approximately
200MWp. Proceeds will be used to reduce debt and recycle capital into
yield-accretive opportunities.
· In March, the Company acquired the rights to a 467MWp development-stage
pipeline in Spain, providing further capital recycling opportunities.
· The Board doubled the share buyback programme to £20 million given the
disconnect between the Company's share price and the fair value of its
portfolio.
· Total dividends of 3.775 pence per share declared for the first half of
2023. With 1.5x cover on a cash basis, Foresight Solar remains well on track
to deliver its full-year target dividend of 7.55 pence per share.
Key Metrics
As at As at As at
30 June 2023 31 December 2022 30 June 2022
Net Asset Value ("NAV") £726.6m £771.5m £754.9m
NAV per Share 119.9p 126.5p 123.8p
Gross Asset Value ("GAV") £1,237.2m £1,296.3m £1,294.9m
Total Dividend per Share for the period 3.775p 7.12p 3.56p
Annualised Total NAV Return since IPO 8.3% 9.0% 8.9%
Commenting on the Company's results, Alexander Ohlsson, Chairman of Foresight
Solar, said:
"Foresight Solar continued to deliver strongly against its core operational
and financial objectives, despite the challenging macroeconomic environment in
the first half of the year. Electricity production across the portfolio was
2.8% above budget, driven by strong operational performance and good
irradiation, and, with assets in all geographies performing well, cash
generation was exceptionally strong.
"We are well on track to deliver our 7.55 pence per share dividend target for
2023. Based on the strong cash distribution from the portfolio and the
certainty provided by the high levels of near-term energy price hedges, we
forecast a 1.5 times dividend cover to at least 2025 on a cash covered basis.
"We have also commenced a divestment process to realise gains and recycle
capital whilst retaining an attractively balanced portfolio. Proceeds from
disposals will be used to reduce gearing and to cover commitments under the
existing pipeline. Based on current forecasts, the sale of about 200MW of
operational assets will allow the full funding of our expected pipeline until
the end of 2025 without the need for additional external capital.
"More than ever, we are focused on strongly returns-accretive opportunities
for new investments, and earlier-stage projects, such as the 467MWp
development-stage pipeline we acquired in Spain, offer high NAV growth
potential with lower upfront capital requirements.
"Foresight Solar will celebrate its 10-year anniversary in October, and we are
proud of the many achievements of the last decade. We have successfully grown
the business, expanding internationally and into new technologies, and since
our 2013 IPO we have paid a dividend every quarter, yielding Shareholders an
annualised total NAV return of 8.3%. During this time, the dividend has grown
every year, going from 6 pence per share to a targeted 7.55 pence per share,
an impressive 25% increase.
"We have seen a disconnect develop between asset values inferred by the share
price and asset pricing supported by third-party transactions in the six
months to June. The dislocation has led the Board to double the share buyback
programme to £20 million.
"Looking forward, the scale of growth opportunities for Foresight Solar is
considerable. The impetus to achieve Net Zero targets is driving even more
investment into renewable generation, and solar and battery storage are major
beneficiaries, with both being comparatively low cost and quick to deploy.
"With measures in place to shore up the balance sheet in a volatile macro
environment, a highly cash-generative portfolio, and a laser-like focus on
returns-accretive pipelines, Foresight Solar is well placed to continue
delivering steady, resilient income with an element of NAV growth for decades
to come."
Half-year report
A copy of the half-year report has been submitted to the National Storage
Mechanism and is available at
https://data.fca.org.uk/#/nsm/nationalstoragemechanism
(https://data.fca.org.uk/#/nsm/nationalstoragemechanism) . The half-year
report is also available on Foresight Solar's website, where you can find all
information about the Company:
https://fsfl.foresightgroup.eu/shareholder-centre
(https://fsfl.foresightgroup.eu/shareholder-centrew) .
Results presentation
Foresight Solar is holding a presentation for analysts at 9:30am today.
Analysts wishing to attend should contact
foresightsolar@citigatedewerogerson.com
(mailto:foresightsolar@citigatedewerogerson.com) . The presentation will also
be uploaded to the Company's website.
Dividend Declaration
The Board is pleased to announce the second interim dividend relating to 2023
of 1.895 pence per ordinary share. The shares will go ex-dividend on 19
October 2023 and the Dividend will be paid on 24 November 2023 to shareholders
on the register as at the close of business on 20 October 2023.
Foresight Solar confirms its dividend target of 7.55 pence per ordinary share
for 2023.
For further information, please contact:
Foresight Group +44 (0)20 3911 2318
Matheus Fierro
(fsflir@foresightgroup.eu)
Jefferies International Limited +44 (0)20 7029 8000
Gaudi Le Roux
William Brown
Harry Randall
Singer Capital Markets +44 (0)20 7496 3000
Robert Peel
Alaina Wong
Citigate Dewe Rogerson +44 (0)20 7638 9571
Toby Moore +44 7768 981 763
Will Easton +44 7786 420 017
Lucy Gibbs +44 7957 596 729
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