TIDMFSFL
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 GBP726.6 million (31 December 2022:
GBP771.5 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 GBP52 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 GBP20
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 31 December 30 June 2022
2023 2022
Net Asset Value ("NAV") GBP726.6m GBP771.5m GBP754.9m
------------ ------------- --------------
NAV per Share 119.9p 126.5p 123.8p
------------ ------------- --------------
Gross Asset Value ("GAV") GBP1,237.2m GBP1,296.3m GBP1,294.9m
------------ ------------- --------------
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 GBP20 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 . 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 .
Results presentation
Foresight Solar is holding a presentation for analysts at 9:30am
today. Analysts wishing to attend should contact
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
Matheus Fierro
(fsflir@foresightgroup.eu) +44 (0)20 3911 2318
Jefferies International Limited
Gaudi Le Roux
William Brown
Harry Randall +44 (0)20 7029 8000
Singer Capital Markets
Robert Peel
Alaina Wong +44 (0)20 7496 3000
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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