BlackRock Energy and Resources Income Trust Plc Portfolio Update

 
TIDMBERI 
 
BLACKROCK ENERGY AND RESOURCES INCOME TRUST plc (LEI:54930040ALEAVPMMDC31) 
 
All information is at 31 October 2021 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                       6.1%       6.8%          9.4%     59.1%         53.8%       66.8% 
 
Share price                           8.5%      11.9%          4.5%     71.0%         60.8%       60.1% 
 
Sources: Datastream, BlackRock 
 
At month end 
 
Net asset value - capital only:                                                               103.12p 
 
Net asset value cum income1:                                                                  104.87p 
 
Share price:                                                                                   99.60p 
 
Discount to NAV (cum income):                                                                    5.0% 
 
Net yield:                                                                                       4.0% 
 
Gearing - cum income:                                                                            5.9% 
 
Total assets:                                                                                 £121.9m 
 
Ordinary shares in issue2:                                                                116,218,357 
 
Gearing range (as a % of net assets):                                                           0-20% 
 
Ongoing charges3:                                                                               1.25% 
 
1 Includes net revenue of 1.75p. 
2 Excluding 2,747,643 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 2020. The Manager has also undertaken to cap the Company's ongoing 
charges by way of a management fee rebate to ensure that these do not exceed 
1.25% of net asset value per annum. 
 
Sector Overview 
 
Mining                                       40.9% 
 
Traditional Energy                           33.9% 
 
Energy Transition                            24.5% 
 
Net Current Assets                            0.7% 
 
 
                                             ----- 
 
                                            100.0% 
 
                                             ===== 
 
Sector Analysis                     % Total Assets     Country Analysis                       % Total 
                                                 ^                                            Assets^ 
 
Mining: 
 
Diversified                                   22.6     Global                                    56.9 
 
Industrial Minerals                            4.1     USA                                       18.0 
 
Gold                                           4.1     Canada                                    10.8 
 
Copper                                         3.6     Latin America                              5.9 
 
Steel                                          2.7     Australia                                  2.4 
 
Diamonds                                       1.3     Germany                                    1.9 
 
Iron                                           1.0     South Africa                               1.4 
 
Platinum                                       0.9     France                                     1.0 
 
Nickel                                         0.6     Ireland                                    0.8 
 
Subtotal Mining:                              40.9     Africa                                     0.2 
 
                                                       Net Current Assets                         0.7 
 
Traditional Energy: 
 
Integrated                                    14.6                                              ----- 
 
E&P                                           13.5                                             100.00 
 
Refining & Marketing                           4.1                                              ===== 
 
Distribution                                   1.2 
 
Oil Services                                   0.5 
 
Subtotal Traditional Energy:                  33.9 
 
Energy Transition: 
 
Energy Efficiency                              9.1 
 
Electrification                                7.3 
 
Renewables                                     5.5 
 
Transport                                      2.6 
 
Subtotal Energy Transition:                   24.5 
 
Net Current Assets                             0.7 
 
                                              ---- 
 
                                             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 6.6% of the Company's net asset value. 
 
Ten Largest Investments 
 
Company                                            Region of Risk                      % Total Assets 
 
 
Glencore                                                   Global                                 6.7 
 
Vale                                                Latin America 
 
    Equity                                                                                        3.7 
 
    Bond                                                                                          2.2 
 
BHP                                                        Global                                 3.5 
 
Anglo American                                             Global                                 3.4 
 
Exxon Mobil                                                Global                                 3.2 
 
Chevron                                                    Global                                 3.2 
 
Total                                                      Global                                 2.8 
 
ConocoPhillips                                             Global                                 2.7 
 
EDP Renovaveis                                             Global                                 2.4 
 
Enel                                                       Global                                 2.2 
 
Commenting on the markets, Tom Holl and Mark Hume, representing the Investment 
Manager noted: 
 
The Company's Net Asset Value (NAV) per share increased by 6.1% during the 
month of October (in Sterling terms with dividends reinvested). 
 
After a weak start to the month, global equities posted positive returns in 
October, with the MSCI ACWI index returning +5.0%. Economic data remained 
positive with PMIs improving in the majority of developed countries and 
continued progress with vaccination rollouts. 
 
Traditional energy equities continued to move higher in October, supported by 
stronger oil prices. The relative tightness in supply and demand appears to be 
the result of a continuation of the COVID global economic recovery and reduced 
investment in new oil supply. Spot gas prices pulled back slightly from the 
highs in recent months, but remained far above levels of just a few months ago. 
Despite the pull back in spot gas prices, the futures prices for the 2022-2024 
period moved higher. Natural gas prices fell by 6.8% over the month but remain 
over 103% higher than at the start of the year. The scope for additional gas 
supply into European and Asian markets remains limited following the sustained 
capital discipline and lack of investment in new supply within the energy 
sector in recent years. Against this backdrop, the Brent and WTI (West Texas 
Intermediate) rose by 6.8% and 11.2%, ending the month at $85/bbl and $84/bbl 
respectively. 
 
Within the mining sector, thermal coal supply shortages in China saw prices 
remain at record highs. China also curbed production of energy intensive 
commodities, aluminium and steel, due to higher energy prices and as part of 
its efforts to combat emissions and pollution. Iron ore, a key input in steel 
production, came under further pressure as a result, with 62% fe(iron) prices 
falling by 4.6%. Elsewhere, platinum group metals (PGMs) prices rose over the 
month on signs of greater semiconductor chip availability, improving the 
outlook for automobile supply (PGMs are used in the catalytic converters for 
petrol and diesel cars). 
 
Within the energy transition space, in the lead up to the climate conference 
COP26, a number of countries including China, the UK and Australia made 
supportive statements. The UK Prime Minister announced that all UK electricity 
would be generated from clean sources by 2035. The International Energy Agency 
(IEA) released its World Energy Outlook 2021, which highlighted just how far 
the energy transition still has to go, despite record installations of wind and 
solar power in 2020. Outlining the scale of the challenge they noted that 
"every data point showing the speed of change in energy can be countered by 
another showing the stubbornness of the status quo". The IEA report showed that 
a sustainable energy economy was emerging, but despite the rapid growth of 
recent years, this was not yet growing quickly enough to reach net zero by 
2050. 
 
All data points in US dollar terms unless otherwise specified. Commodity price 
moves sourced from Thomson Reuters Datastream. 
 
18 November 2021 
 
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. 
 
 
 
 
END 
 
 

(END) Dow Jones Newswires

November 18, 2021 10:17 ET (15:17 GMT)