BlackRock Energy and Resources Income Trust Plc Portfolio Update

 
TIDMBERI 
 
BLACKROCK ENERGY AND RESOURCES INCOME TRUST plc (LEI:54930040ALEAVPMMDC31) 
 
All information is at 31 December 2019 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                    4.5%       0.2%                   -4.0%     12.4%                       6.2%                                               20.8% 
 
Share price                        8.5%       0.3%                   -1.6%      5.3%                      -5.4%                                                8.9% 
 
Sources: Datastream, BlackRock 
 
At month end 
 
Net asset value - capital only:                                                                  77.31p 
 
Net asset value cum income*:                                                                     77.71p 
 
Share price:                                                                                     70.60p 
 
Discount to NAV (cum income):                                                                      9.2% 
 
Net yield:                                                                                         5.7% 
 
Gearing - cum income:                                                                              8.5% 
 
Total assets:                                                                                    GBP93.7m 
 
Ordinary shares in issue:                                                                   113,870,349 
 
Gearing range (as a % of net assets):                                                             0-20% 
 
Ongoing charges**:                                                                                 1.5% 
 
* Includes net revenue of 0.40p. 
** Calculated as a percentage of average net assets and using expenses, 
excluding any interest costs and excluding taxation for the year ended 30 
November 2019. 
 
Sector Analysis                 % Total Assets^       Country Analysis                                                                                      % Total Assets^ 
 
Integrated Oil                             31.0       Global                                                                                                            65.9 
 
Diversified Mining                         23.5       USA                                                                                                               12.7 
 
Gold                                       16.3       Canada                                                                                                            11.2 
 
Copper                                     10.0       Latin America                                                                                                      4.6 
 
Exploration & Production                    5.9       Australia                                                                                                          3.6 
 
Industrial Minerals                         5.1       Asia                                                                                                               2.3 
 
Silver                                      3.5       South Africa                                                                                                       1.8 
 
Distribution                                3.1       Africa                                                                                                             0.4 
 
Diamonds                                    2.1       Net Current Liabilities^                                                                                          -2.5 
 
Electricity                                 2.0                                                                                                                        ----- 
 
Net Current Liabilities^                   -2.5                                                                                                                        100.0 
 
                                          -----                                                                                                                        ===== 
                                          100.0 
                                          ===== 
 
^ Total Liabilities 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 5.9% of the Company's net asset 
value. 
 
Ten Largest Investments 
 
Company 
 
                                                     Region of Risk                                          % Total Assets 
 
BHP                                                          Global                                                     8.5 
 
First Quantum Minerals*                                      Global                                                     7.4 
 
Royal Dutch Shell 'B'                                        Global                                                     6.2 
 
Barrick Gold                                                 Global                                                     5.7 
 
BP Group                                                     Global                                                     5.0 
 
Exxon Mobil                                                  Global                                                     4.0 
 
Rio Tinto                                                    Global                                                     3.9 
 
Total                                                        Global                                                     3.7 
 
ConocoPhillips                                                  USA                                                     3.6 
 
Chevron                                                      Global                                                     3.5 
 
Commenting on the markets, Olivia Markham and Tom Holl, representing the 
Investment Manager noted: 
 
The Company's NAV increased by 4.5% during the month of December (in Sterling 
terms). 
 
Global equity markets continued to rise in December with the MSCI World Index 
returning 3.0%. Geopolitical risk moderated somewhat as the US and China 
tentatively reached a phase one trade deal, which continued to support equity 
markets into year end. In terms of economic data, consumer confidence 
indicators and services Purchasing Managers' Index (PMI) data remained 
supportive, whilst manufacturing PMI data in December was broadly weaker across 
the major economic blocs. 
 
It was a strong end to the year for the mining sector on the back of the 
improved equity market sentiment as well as rising mined commodity prices. 
Mined commodity prices were up almost across the board, with copper, gold and 
iron ore prices up 5.2%, 4.0% and 4.5% respectively (figures in US Dollars). 
 
Within the energy sector, The Organisation of the Petroleum Exporting Countries 
(OPEC+) agreed to remove 500,000 barrels per day from the oil market in their 
December meeting, which is in addition to the previously agreed reduction of 
1.2 million barrels per day announced in December 2018. Voluntary cuts in 
addition to these by Saudi Arabia will also continue. Against this backdrop, 
oil prices increased over the month, with the Brent and West Texas Intermediate 
indices returning +5.1% and +10.7%, to end the period at prices of $67/bbl and 
$61/bbl respectively. This positive return reflected the improving 
macroeconomic sentiment, the OPEC+ commitment to constraining production 
combined with a lower oil rig count suggesting US shale growth continues to 
decline. Natural Gas and Natural Gas Liquids (NGL) prices also continued to 
weaken during the month, due to an oversupplied market. 
 
All data points in US Dollar terms unless otherwise specified. Commodity price 
moves sourced from Thomson Reuters Datastream. 
 
Source: BlackRock. Data as at 31 December 2019. 
 
22 January 2020 
 
ENDS 
 
Latest information is available by typing www.blackrock.co.uk/brci 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. 
 
 
*The holding in First Quantum Minerals includes both an equity holding and a 
holding in several bonds. 
 
 
 
 
END 
 

(END) Dow Jones Newswires

January 22, 2020 05:05 ET (10:05 GMT)