Portfolio Update

BLACKROCK ENERGY AND RESOURCES INCOME TRUST plc (LEI:54930040ALEAVPMMDC31)

All information is at 31 December 2020 and unaudited.

Performance at month end with net income reinvested

One

Three

Six

One

Three

Five

Month

Months

Months

Year

Years

Years

Net asset value

7.3%

25.1%

27.7%

16.9%

21.9%

108.6%

Share price

11.2%

27.0%

44.6%

18.8%

22.4%

93.0%

Sources: Datastream, BlackRock

At month end

Net asset value – capital only:

85.12p

Net asset value cum income*:

85.67p

Share price:

78.40p

Discount to NAV (cum income):

8.5%

Net yield:

5.1%

Gearing - cum income:

4.8%

Total assets:

£100.2m

Ordinary shares in issue:

113,470,349

Gearing range (as a % of net assets):

0-20%

Ongoing charges**:

1.3%

* Includes net revenue of 0.55p. ** Calculated as a percentage of average net assets and using expenses, excluding any interest costs and excluding taxation for the year ended 30 November 2020 (unaudited). With effect from 17 March 2020, the Manager has undertaken to cap the Company’s ongoing charges by way of a management fee rebate to ensure that these do not exceed 1.25% of net asset value per annum.

Sector Overview

Mining

51.4%

Energy Transition

24.1%

Energy

26.1%

Net Current Liabilities

-1.6%

-----

100.0%

=====

Sector Analysis

% Total Assets^

Country Analysis

% Total Assets^

Mining:

Diversified

23.6

Global

59.6

Copper

9.9

USA

12.2

Industrial Minerals

5.2

Latin America

9.7

Gold

4.2

Canada

7.2

Iron

3.4

Australia

5.0

Diamonds

1.6

Germany

2.1

Steel

1.3

South Africa

2.0

Platinum

1.2

Norway

1.1

Nickel

1.0

France

0.9

Subtotal mining:

51.4

United Kingdom

0.7

Ireland

0.6

Energy:

Brazil

0.3

Integrated

14.6

Africa

0.2

E&P

9.8

Net Current Liabilities^

-1.6

Distribution

1.2

-----

Oil Services

0.5

100.00

Subtotal Energy:

26.1

=====

Energy Transition:

Electrification

10.9

Energy Efficiency

7.1

Renewables

4.2

Transport

1.1

Storage

0.8

Subtotal Energy Transition:

24.1

Net Current Liabilities^

-1.6

----

100.0

=====

^ Total Assets for the purposes of these calculations exclude bank overdrafts, and the net current liabilities figure shown in the tables above therefore exclude bank overdrafts equivalent to 3.2% of the Company’s net asset value.

Ten Largest Investments

Company

Region of Risk

% Total Assets

BHP

Global

6.9

Vale*

Latin America

6.6

Rio Tinto

Global

6.2

Chevron**

Global

4.3

Freeport-McMoran

USA

3.9

Anglo American

Global

3.6

First Quantum Minerals*

Global

3.4

Vestas

Global

3.2

Petrobras - ADR

Latin America

3.0

Enel

Global

2.8

*The holding in First Quantum Minerals and Vale includes both an equity holding and a holding in bonds. **The holding in Chevron includes both an equity holding and an option holding.

Commenting on the markets, Tom Holl and Mark Hume, representing the Investment Manager noted:

The Company’s NAV increased by 7.3% during the month of December (in Sterling terms with dividends reinvested). Despite renewed lockdowns across Europe and in parts of Asia, global equity markets continued to ride a wave of optimism following the announcement of progress in a COVID-19 vaccine, albeit at a slower rate than in November. For reference the MSCI AC World Index increased by 4.5%. Cyclical stocks were buoyed by the news that the US government signed into law a $900 billion pandemic relief bill that included enhanced unemployment benefits and direct cash payments. A long-awaited post-Brexit trade deal between the UK and the EU was finally struck on Christmas Eve but investors’ spirits were dampened by the emergence of a new, highly transmissible coronavirus variant that is spreading across Europe and the rest of the world. Global economic activity data also remained strong, with global manufacturing PMIs coming in at 53.8. Against this macroeconomic backdrop, the mined commodities performed well almost across the board, supporting the mining sector’s outperformance of broader equity markets. Iron ore was the standout performer, with the iron ore (62% fe.) price rising 22.4% to an 8-year high of $161/tonne. Early in the month, Vale downgraded its 2021 iron ore production guidance to 315-335 million tonnes versus consensus of ~350 million tonnes, indicating continued tightness in that market. Gold also performed well, its price rising 7.0% over the month, supported by declines in real interest rates and US Dollar weakness. Within the conventional energy sector, the progress with the vaccine was helpful for oil demand, particularly Asian energy demand which has bounced back post lockdown. Liquified natural gas prices are subsequently close to all-time highs. Elsewhere within the energy sector, the OPEC meeting was held at the start of December, where they announced that they would taper output cuts, deciding on a month forward basis how much production to add back to the market. Against this backdrop, oil prices rose, with Brent and WTI increasing by 9.4% and 6.5%, ending the month at $51/bbl and $48/bbl respectively.  Within the energy transition space, the tailwinds around electrification remain very strong. We saw strong data coming out of China during the month on Electric Vehicle (EV) volumes. EV sales in Europe also continued to be positive. For example, EV sales have risen to a record 54% market share in Norway. Elsewhere, US Congress has agreed on targeted renewable energy initiatives, which includes an extension of the production tax credit. Solar will benefit from a two-year extension of the investment tax credit at 26%, and offshore wind will benefit from a 30% investment tax credit up until the end of 2025.  All data points in US Dollar terms unless otherwise specified. Commodity price moves sourced from Thomson Reuters Datastream. 22 January 2021

ENDS

Latest information is available by typing www.blackrock.com/uk/beri on the internet, "BLRKINDEX" on Reuters, "BLRK" on Bloomberg or "8800" on Topic 3 (ICV terminal).  Neither the contents of the Manager’s website nor the contents of any website accessible from hyperlinks on the Manager’s website (or any other website) is incorporated into, or forms part of, this announcement.