RCS - NextEnergy Solar Fnd - Update research from QuotedData

NextEnergy Solar FundAnnouncement

13/12/2022 09:30

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RNS Number : 5313J  NextEnergy Solar Fund Limited  13 December 2022

NextEnergy Solar Fund - Update research from QuotedData

13(th) December 2022

Earnings visibility underpins dividend target

It has been a busy few months for NextEnergy Solar Fund (NESF) and the listed
renewable energy sector. The share price may have come under pressure from the
threat of windfall taxes - see page 6 - and rising discount rates (used to
discount NESF's future cash flows into a present-day valuation for its net
asset values - NAVs - see page 5), but the picture on these points is clearer,
and - as the latest results show - NESF's NAV is still making positive
progress.

Strong forecast earnings cover for the dividend and NESF's forward sales of
power give the board confidence to maintain its policy of at least matching
dividend hikes with inflation. If shareholders give their approval for further
expansion in this area, a push into energy storage offers another route to
earnings growth.

The discount is wider than its long-term average. However, given the above, we
think the shares can move back to trading at a premium to NAV and the fund can
get back to raising fresh equity to back its extensive pipeline of revenue
accretive investments.

Full research:

https://quoteddata.com/research/nextenergy-solar-fund-earnings-visibility-underpins-dividend-target-qd/
(https://quoteddata.com/research/nextenergy-solar-fund-earnings-visibility-underpins-dividend-target-qd/)

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NB: Marten & Co was paid to produce this note on NextEnergy Solar Fund
Limited and it is for information purposes only. It is not intended to
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