Portfolio Update

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

All information is at 31 July 2022 and unaudited.

Performance at month end with net income reinvested

One

Three

Six

One

Three

Month

Months

Months

Year

Years

Net asset value

7.0%

-2.0%

16.1%

31.1%

73.1%

Share price

6.5%

-11.5%

5.4%

31.8%

76.2%

Sources: Datastream, BlackRock

At month end

Net asset value – capital only:

124.47p

Net asset value cum income1:

125.21p

Share price:

114.00p

Discount to NAV (cum income):

9.0%

Net yield:

3.8%

Gearing - cum income:

4.3%

Total assets:

£168.2m

Ordinary shares in issue2:

134,356,194

Gearing range (as a % of net assets):

0-20%

Ongoing charges3:

1.21%

1 Includes net revenue of 0.74p. 2 Excluding 0 ordinary shares held in treasury. 3 Calculated as a percentage of average net assets and using expenses, excluding any interest costs and excluding taxation for the year ended 30 November 2021.

Sector Overview

Mining

40.2%

Traditional Energy

38.3%

Energy Transition

24.5%

Net Current Liabilities

-3.0%

-----

100.0%

=====

Sector Analysis

% Total Assets^

Country Analysis

% Total Assets^

Mining:

Diversified

18.2

Global

54.3

Industrial Minerals

6.8

USA

20.9

Copper

6.5

Canada

13.6

Aluminium

3.2

Latin America

5.6

Steel

2.4

Germany

3.9

Diamonds

1.0

Australia

2.8

Nickel

0.8

Ireland

0.6

Gold

0.7

France

0.6

Iron

0.6

India

0.6

Subtotal Mining:

40.2

Spain

0.1

Net Current Liabilities

-3.0

Traditional Energy:

-----

E&P

20.0

100.00

Integrated

11.5

=====

Distribution

2.4

Oil Services

2.3

Refining & Marketing

2.1

Subtotal Traditional Energy:

38.3

Energy Transition:

Energy Efficiency

7.9

Electrification

7.6

Transport

4.6

Renewables

4.4

Subtotal Energy Transition:

24.5

Net Current Liabilities

-3.0

----

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 1.3% of the Company’s net asset value.

Ten Largest Investments

Company

Region of Risk

% Total Assets

Glencore

Global

6.7

First Quantum Minerals

Global

Equity

3.0

Bond

1.7

Vale

Latin America

Equity

3.1

Bond

1.4

Shell

Global

4.0

ConocoPhillips

Global

3.0

Albemarle

Global

3.0

NextEra Energy

United States

3.0

Samsung SDI

Global

2.7

Teck Resources

Global

2.6

EDP Renováveis

Global

2.6

Commenting on the markets, Tom Holl and Mark Hume, representing the Investment Manager noted: The Company’s NAV returned +7.0% during the month of July (in Sterling terms with dividends reinvested). Economic data released during the month of July pointed to further evidence of a slowing global economy. Inflationary pressures continued and growth data disappointed. However, against this backdrop, equity markets posted positive returns with the MSCI All Country World Index returning +6.9%. Markets increasingly priced in interest rate cuts from the Fed in 2023, and the anticipation of a policy pivot supported risk assets. Within the traditional energy sector, oil prices have reduced somewhat as we have seen some evidence of softer demand out of China on the back of continued local Covid-19 related lockdowns. There are mixed signals on the oil demand side. The Energy Information Administration (‘EIA’) report pointed to some signs of demand destruction at the margin in terms of seasonal driving, as US drivers are driving less in response to the oil price. However, US refiners are seeing no evidence of demand destruction. On the supply side, Saudi Arabia insisted that oil policy decisions would be taken according to market logic and within the OPEC+ coalition. Against this backdrop, the Brent and WTI (West Texas Intermediate) oil prices fell by 6.9% and 5.8%, ending the month at $112/bbl and $101/bbl respectively. During the month there were also continued tensions between Russia and Europe, resulting in gas supply concerns. European gas prices moved sharply higher as a result of the well discussed reductions in the pipeline volumes through the Nord Stream. The European gas price was up by 35%, with the 1-month forward price trading at almost 200 euros/MWh, compared to the 5-year average price of 30 euros/MWh. July was mixed for the mining sector, with a more positive tone towards the end of the month. Mined commodity prices were mostly down with, for example, iron ore (62% fe) and copper prices down by 4.1% and 3.9% respectively, whilst nickel prices bucked the trend and increased by 4.1%. The gold price was also down by 2.4%, as US Dollar strength and an equity market rebound was a headwind, however the precious metal held up better than some of the other mined commodities on ‘safe-haven’ demand amidst geopolitical risk. At a company level, despite record profits on the back of a rise in commodity prices post Covid-19 lockdowns easing, some of the largest mining companies have reported a fall in dividend payouts compared to 2020 and 2021. Within the energy transition theme, the Democrat Senate held a formal agreement to produce a Climate Bill which aims to invest heavily on renewable energy, the electrification of vehicles and hydrogen which now awaits official approval. 15 August 2022

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.