Portfolio Update

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

All information is at 31 December 2022 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

-4.3%

11.2%

19.5%

35.3%

102.5%

111.2%

Share price

-0.7%

14.1%

26.4%

36.6%

117.9%

124.4%

Sources: Datastream, BlackRock

At month end

Net asset value – capital only:

136.79p

Net asset value cum income1:

137.61p

Share price:

133.00p

Discount to NAV (cum income):

3.4%

Net yield:

3.3%

Gearing - cum income:

9.2%

Total assets:

£184.9m

Ordinary shares in issue2:

134,356,194

Gearing range (as a % of net assets):

0-20%

Ongoing charges3:

1.13%

1 Includes net revenue of 0.82p. 2 Excluding 0 ordinary shares held in treasury. 3 The Company’s ongoing charges are calculated as a percentage of average daily net assets and using the management fee and all other operating expenses excluding finance costs, direct transaction costs, custody transaction charges, VAT recovered, taxation and certain other non-recurring items for the year ended 30 November 2022. In addition, the Company’s Manager has also agreed to cap ongoing charges by rebating a portion of the management fee to the extent that the Company’s ongoing charges exceed 1.25% of average net assets.

Sector Overview

Mining

50.0%

Traditional Energy

30.4%

Energy Transition

21.6%

Net Current Liabilities

-2.0%

-----

100.0%

=====

Sector Analysis

% Total Assets^

Country Analysis

% Total Assets^

Mining:

Diversified

24.2

Global

62.5

Copper

10.3

USA

16.8

Industrial Minerals

5.3

Latin America

8.0

Aluminium

3.6

Canada

7.5

Steel

2.4

Germany

3.7

Nickel

1.5

Australia

2.5

Gold

1.2

Ireland

0.5

Uranium

0.8

France

0.5

Iron

0.6

Net Current Liabilities

-2.0

Platinum Group Metals

0.1

-----

Subtotal Mining:

50.0

100.0

=====

Traditional Energy:

Integrated

15.7

E&P

12.1

Oil Services

1.2

Distribution

0.9

Refining & Marketing

0.5

Subtotal Traditional Energy:

30.4

Energy Transition:

Energy Efficiency

6.4

Electrification

6.4

Renewables

4.9

Transport

3.9

Subtotal Energy Transition:

21.6

Net Current Liabilities

-2.0

----

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 7.0% of the Company’s net asset value.

Ten Largest Investments

Company

Region of Risk

% Total Assets

Glencore

Global

7.4

Vale

Latin America

Equity

4.4

Bond

1.3

Exxon Mobil

Global

4.9

BHP

Global

4.4

Teck Resources

Global

3.8

First Quantum Minerals

Global

Equity

1.8

Bond

1.5

Shell

Global

2.8

BP

Global

2.8

NextEra Energy

United States

2.6

TotalEnergies

Global

2.4

Commenting on the markets, Tom Holl and Mark Hume, representing the Investment Manager noted: The Company’s Net Asset Value (NAV) per share decreased by 4.3% during the month of December (in Sterling terms with dividends reinvested). Equity markets came under pressure during the last month of the year, with the MSCI All Country World Index falling by 4.0%. For reference, the index returned -19.8% during the full year of 2022. The sharp losses were driven by aggressive interest rate hikes in an effort to curb inflation, fear surrounding a potential imminent recession, combined with rising geopolitical risk following the Russia-Ukraine conflict and rising concerns over China’s Covid-19 lockdowns. During the month of December, the US Treasury yield curve also inverted its most since the early 1980s. Elsewhere, China abandoned its strict zero-Covid regime, however China’s official PMI data showed a steep decline in economic activity, with its manufacturing and services readings coming in at 47 and 41.6, respectively (a reading below 50 indicates a contraction). Both readings have fallen to their lowest levels since early 2020. The reaction from mining equities, following the removal of COVID-related restrictions in China was muted, having moved higher in October and November on expectations that China was about to re-open. Mined commodity prices generally performed well, aided by a weakening US dollar. For reference, iron ore (62% fe.) and copper prices were up by 15.7% and 1.7% respectively over the month. Meanwhile, warmer-than-expected weather during the month led to falling gas prices which reduced cost pressures for the miners. Within the traditional energy space, oil prices were modestly lower reflecting deteriorating economic data and an expectation that relaxing of China’s Covid restrictions would be positive for oil demand. Additional sanctions in the form of an EU and UK ban on Russian crude oil came into force on 5 December 2022, which included a ban on ancillary services, such as insurance, related to the transport of oil. Natural gas prices moved lower in the US and in Europe as warmer weather contributed to Europe’s natural gas storage levels being maintained at >90%, above seasonal norms. US Henry Hub fell by 36% during the month to end the year at $4.4/mmbtu. The Brent and WTI (West Texas Intermediate) oil prices fell by 3.3% and -0.3%, ending the month at $83/bbl and $80/bbl respectively. Within the energy transition theme, the IEA raised expectation for solar installations and forecast that installed solar capacity may be greater than that of coal within 5 years (although this ignored the difference in load factors). European power prices tracked lower from their elevated levels as warmer weather contributed to Europe’s natural gas storage levels being maintained at >90%, which is above seasonal norms. Should Europe exit winter with higher storage, this would reduce the pressure to secure enough LNG ahead of next winter. Lower European gas prices continued to support European equities, relative to global equity markets.  11 January 2023

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.