Bluefield Solar Income Fund Limited
('Bluefield Solar' or the 'Company')
Unaudited NAV 31 March 2020 and Second Interim Dividend
Bluefield Solar (LON: BSIF), a sterling income fund that invests in UK-based solar assets, announces its net asset value ('NAV') as at 31 March 2020, and the Company's second interim dividend for the current financial year, which ends on 30 June 2020 (the 'Second Interim Dividend'). Unless otherwise noted herein, the information provided in this announcement is unaudited.
The Company's unaudited NAV as at 31 March 2020 was £418.7 million, or 113.02 pence per Ordinary Share, compared to the audited NAV as at 31 December 2019 of £447.4 million, or 120.75 pence per Ordinary Share.
The Company's NAV as at 31 March 2020 reflects the adoption of the most recent central power curves published by the Company's two independent power forecasters (which the Company blends on a 50/50 basis). Compared to December 2019, the blended curves used by the Company have reduced on average by 15% over the next five years (including a 25% reduction over 2020 and 2021) and by 1% from 2025 until 2050. This corresponds to an average capture price of c.£41 per MWh for the period 2020-2024 and £48 per MWh for the period 2025-2050 (in 2019 prices).
The impact on the Company's NAV from adoption of the latest power curves is a reduction of 6.7 pence per Ordinary Share, reflecting the reduced independent revenue estimates, particularly in the period 2021-2024.
The Company has 100% of its revenues contracted until 30 June 2020, 88% until 31 December 2020 and 77% until 30 June 2021.
The NAV update also includes the addition of the 13.9MWp portfolio which the Company purchased in January 2020, generation in the period to March 2020, a roll forward of portfolio working capital and an increase in the corporation tax rate from 17% to 19%.
For the avoidance of doubt, the 31 March 2020 NAV does not include a liability for the second Interim dividend of 1.95 pence per Ordinary Share as this has been declared post 31 March 2020.
All other core valuation assumptions have remained consistent with the NAV issued in the Company's Interim financial statements for the period ending 31 December 2019.
The Second Interim Dividend of 1.95 pence per Ordinary Share (April 2019: 1.90 pence per Ordinary Share) will be payable to shareholders on the register as at 11 May 2020 with an associated ex-dividend date of 7 May 2020 and a payment date of 29 May 2020.
Furthermore, the Board is pleased to reconfirm its guidance of a full year dividend of 7.90 pence per Ordinary Share for the financial year ending 30 June 2020. This will be covered by earnings and is post debt amortisation.
The portfolio continues to perform extremely well. As at 31 March 2020, generation was 4.8% above target. In respect of the Covid-19 pandemic and business continuity, the Company reconfirms that its investment adviser, Bluefield Partners, and its technical asset management provider, Bluefield Services, and its operation and maintenance provider, Bluefield Operations, are all successfully remote working and there are no foreseen issues around business continuity.
As indicated in previous announcements, the Company is reviewing the policy of increasing the dividend in line with RPI.
For further information:
Bluefield Partners LLP (Company Investment Adviser)
James Armstrong /Neil Wood/Giovanni Terranova
Tel: +44 (0) 20 7078 0020
Numis Securities Limited (Company Broker)
Tod Davis / David Benda
Tel: +44 (0) 20 7260 1000
Ocorian Administration (Guernsey) Limited
(Company Secretary & Administrator)
Tel: +44 (0) 1481 742 742
Buchanan (PR Adviser)
Henry Harrison-Topham / Victoria Hayns / Henry Wilson
Tel: +44 (0) 20 7466 5000
Notes to Editors
About Bluefield Solar
Bluefield Solar is a sterling income fund focused on acquiring and managing UK-based solar projects to generate renewable energy for periods of typically 25 years or longer. The Company's primary objective is to deliver to its shareholders stable, long term sterling income via quarterly dividends, which are linked to RPI. The majority of the Group's revenue streams are regulated and non-correlated to traditional markets. Bluefield Solar owns and operates one of the UK's largest, diversified portfolios of solar assets with a combined installed power capacity in excess of 478 Megawatt peak (MWp).
Further information can be viewed at www.bluefieldsif.com
About Bluefield Partners LLP ('Bluefield')
Bluefield was established in 2009 and is an investment adviser to companies and funds investing in solar energy infrastructure. It has a proven record in the selection, acquisition and supervision of large-scale energy and infrastructure assets in the UK and Europe. The team has been involved in over £1.5 billion of solar PV funds and/or transactions in both the UK and Europe since 2008, including over £800 million in the UK since December 2011.
Bluefield has led the acquisitions of, and currently advises on, over 85 UK based solar PV assets that are agriculturally, commercially or industrially situated. Based in its London office, Bluefield's partners are supported by a dedicated and highly experienced team of investment, legal and portfolio executives. Bluefield was appointed Investment Adviser to the Company in June 2013.