UK's Foresight Solar Fund H1 NAV falls on higher discount rates
UK's Foresight Solar Fund H1 NAV falls on higher discount rates
Overview
UK solar and battery asset investor's H1 NAV fell to £517.9 mln, mainly on higher discount rates
H1 EBITDA was on budget at £57.7 mln, but cash flow from operations dropped sharply
Company is considering all strategic options to address persistent share price underperformance
Outlook
Company says strong UK solar resource and power price hedging support favourable net operating cash flow outlook
Foresight Solar is considering all strategic options to maximise shareholder value due to persistent market challenges
Enhancement programme across nine sites expected to deliver up to £2.5 mln of annual revenue improvement once completed
Result Drivers
DISCOUNT RATES AND REGULATION - Co said higher discount rates, regulatory changes and revised UK electricity price forecasts drove NAV decline
PRODUCTION SHORTFALL - Production was 5.6% below forecast, with UK irradiation marginally above budget offsetting weaker performance elsewhere
TAX LIABILITIES - Cash generation was negatively impacted by payment of historical tax liabilities, with further payments expected
Company press release: ID:nRSV6694Va
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Net Asset Value |
| GBP 517.90 mln |
|
H1 Net Asset Value Per Share |
| GBP 0.95 |
|
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the closed end funds peer group is "buy."
Wall Street's median 12-month price target for Foresight Solar Fund Ltd is GBp76.00, about 6.1% above its September 21 closing price of GBp71.60
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 8 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)