Portfolio Update

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

All information is at 30 November 2023 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

2.1%

-3.2%

2.3%

-11.8%

71.3%

103.7%

Share price

1.7%

-3.4%

0.8%

-15.2%

73.9%

99.2%

Sources: Datastream, BlackRock

At month end

Net asset value – capital only:

122.51p

Net asset value cum income1:

123.62p

Share price:

110.40p

Discount to NAV (cum income):

10.7%

Net yield:

4.0%

Gearing - cum income:

7.5%

Total assets:

£162.4m

Ordinary shares in issue2:

131,386,194

Gearing range (as a % of net assets):

0-20%

Ongoing charges3:

1.13%

1 Includes net revenue of 1.11p. 2 Excluding 4,200,000 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

44.5%

Traditional Energy

31.0%

Energy Transition

25.0%

Net Current Liabilities

-0.5%

-----

100.0%

=====

Sector Analysis

% Total Assets^

Country Analysis

% Total Assets^

Mining:

Diversified

23.8

Global

58.1

Copper

6.8

USA

15.9

Gold

3.2

Canada

9.2

Industrial Minerals

2.9

Latin America

8.0

Steel

2.6

Germany

3.2

Aluminium

2.1

France

2.6

Uranium

1.7

Australia

1.3

Nickel

1.5

Africa

1.0

Platinum Group Metals

0.3

United Kingdom

0.7

Tin

-0.4

Ireland

0.5

Subtotal Mining:

44.5

Net Current Assets

-0.5

-----

Traditional Energy:

100.0

E&P

13.3

=====

Integrated

12.8

Distribution

2.4

Oil Services

2.0

Refining & Marketing

0.5

Subtotal Traditional Energy:

31.0

Energy Transition:

Energy Efficiency

9.2

Electrification

8.1

Renewables

4.3

Transport

3.4

Subtotal Energy Transition:

25.0

Net Current Liabilities

-0.5

----

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

4.8

BHP

Global

4.7

Vale

Latin America

Equity

3.3

Bond

1.3

Rio Tinto

Global

4.4

Shell

Global

3.8

Exxon Mobil

Global

3.8

NextEra Energy

United States

2.7

Canadian Natural Resources

Canada

2.7

RWE

Germany

2.5

Hess

Global

2.4

Commenting on the markets, Tom Holl and Mark Hume, representing the Investment Manager noted: The Company’s NAV returned by 2.1% during the month of November (in GBP terms). Global equity markets performed well in November, on the back of signs of economic moderation in the US and falling inflation across developed markets. Central banks also indicated that they had reached the peak of the rate hiking cycle. The Bank of England, Federal Reserve, and European Central Bank left their policy rates unchanged. Markets anticipated rate cuts in the first half of next year on the release of softer inflation data across developed markets. Lower bond yields and healthy corporate earnings also contributed to returns. Given this macroeconomic backdrop, the MSCI All Country World Index returned 9.2%. The mining sector performed well but modestly lagged broader equity markets. China’s manufacturing PMI reached a three-month high, rising to 50.7 from 49.5 in October. Mined commodities were up across the board, with the copper and iron ore prices (62% fe) rising by 4.5% and 7.8% respectively. The copper price was buoyed by the shock to supply caused by the closing of the Cobre de Panama asset in Panama, which accounts for 1.5% of global copper supply.  Iron ore prices appeared to be up on China’s seasonal restocking ahead of Chinese New Year.   Elsewhere, the precious metals also performed well on geopolitical risk in the Middle East, an uncertain macroeconomic outlook, a fall in real rates and weakness in the US dollar. For references, gold and silver prices rose by 2.1% and 9.2% respectively. Within energy markets, OPEC announced a rollover of existing production targets and greater production cuts. However, the impact on oil prices proved temporary with apparent uncertainty over the cohesion and support within OPEC.  Year to date, global oil demand has been resilient rising 1.6mbpd to 101.6mbps according to US Energy Information Administration (EIA). However, oil supply has also exceeded expectations with some additional supply from Iran and Brazil, whilst there remains modest production growth from US shale.  Brent and WTI oil prices fell -5.9% and -7.4%, ending the month at $82/bbl and $76/bbl respectively.  The US Henry Hub natural gas price fell -21.6% during the month to end at $2.80/mmbtu, given back last month’s price increase.   Within the energy transition theme, ahead of COP28, US and China released a joint statement announcing support for the G20 leaders to triple global renewable energy capacity by 2030 and to accelerate renewable energy deployment in their respective economies. It has been estimated that this would require a ~21% per annum growth in renewable energy capacity additions between 2023 and 2030.  The statement also included that each would advance at least five large scale carbon capture and storage projects.  Elsewhere, the UK Government released revised parameters for the pricing cap on AR6 offshore wind bidding, an estimated 8GW of offshore capacity and increased the price cap by 66% compared to a recent auction, where there were no bidders due to the price cap for the power being set too low to attract bids. All data points in US dollar terms unless otherwise specified. Commodity price moves sourced from Thomson Reuters Datastream.

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.

29 December 2023

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