Q1 2022 Net Asset Value and Operational Update

RNS Number : 9657J

Foresight Solar Fund Limited

03 May 2022

 

03 May 2022

Foresight Solar Fund Limited  ("Foresight Solar" or "the Company")

Q1 2022 Net Asset Value  ("NAV") and Operational Update

Foresight Solar Fund Limited, a fund investing in a diversified portfolio of ground-based solar PV and battery storage assets in the UK and internationally, announces that as at 31 March 2022 its unaudited NAV was £714.4 million (31 December 2021: £660.0 million), resulting in a NAV per Ordinary Share of 117.1 pence (31 December 2021: 108.2 pence per share).

Summary of NAV Key drivers for Q1 2022:

Item	p/share movement
NAV at 31 December 2021	108.2
Power forecasts	+5.8
Power Purchase Agreements	+0.8
Inflation	+2.1
Oakey 1 and Longreach Refinancing	+0.2
Project actuals	+0.1
Other	-0.1
NAV at 31 March 2022	117.1

The most significant impact on NAV was from the upward revision in the short- and medium-term power price forecasts, following independent forecasts from three independent consultants resulting in a 5.8 pence per share uplift.

The Company actively manages its exposure to power prices by ensuring an appropriate percentage of revenues are hedged at optimal prices. This supports the objective of increasing the predictability of cash flows and securing strong dividend cover. New fixed price power purchase agreements - entered for future periods between 2022 and 2025 - were secured at prices above forecast adding a further 0.8 pence per share.  

Inflation assumptions also provided a significant increase of 2.1 pence per share, as the NAV incorporated the rebasing effect of actual inflation that was above the Company's assumption of 3% per annum. The inflation assumption for the remainder of 2022 has been increased to 5%. The Company's medium and long-term assumptions remain unchanged.

Finally, the refinancing of the Oakey 1 and Longreach projects in Australia on more favourable terms provided an uplift of 0.2 pence per share.

Gearing Update

The Gross Asset Value ("GAV"), including Company and subsidiaries, as at 31 March 2022, was £1,244.2 million (31 December 2021: £1,172.0 million). The Company's total outstanding debt is approximately £529.8 million, representing 42.6% of GAV (31 December 2021: 43.7%).

Operational Update

The Company's Portfolio surpassed expectations for the quarter with global revenues over 30% above budget. The key drivers are higher than forecast production and merchant power price sales. Generation was particularly strong in March with corresponding cash receipts due to flow through in Q2 2022.

Acquisition pipeline update

The Company is currently reviewing a strong pipeline of UK battery storage and subsidy free solar projects that which would be accretive to the portfolio NAV and target yields.

For further information, please contact:

Foresight Group

Nish Sivarajan	[phone]
( [e-mail] )
Jefferies International Limited	[phone]
Neil Winward
Gaudi Le Roux
Citigate Dewe Rogerson	[phone]
Toby Moore
Lucy Eyles
Lucy Gibbs

 

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