BlackRock Energy and Resources Income Trust Plc Portfolio Update

 
TIDMBERI 
 
BLACKROCK ENERGY AND RESOURCES INCOME TRUST plc (LEI:54930040ALEAVPMMDC31) 
 
All information is at 31 March 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                      -2.5%      -2.3%       8.7%        5.2%       181.8%       122.7% 
 
Share price                          -2.8%      -1.4%      12.5%        5.9%       234.3%       131.3% 
 
Sources: Datastream, BlackRock 
 
At month end 
 
Net asset value - capital only:                                                             133.00p 
 
Net asset value cum income1:                                                                133.29p 
 
Share price:                                                                                130.00p 
 
Discount to NAV (cum income):                                                                  2.5% 
 
Net yield:                                                                                     3.4% 
 
Gearing - cum income:                                                                         13.7% 
 
Total assets:                                                                               £180.7m 
 
Ordinary shares in issue2:                                                              135,586,194 
 
Gearing range (as a % of net assets):                                                         0-20% 
 
Ongoing charges3:                                                                             1.13% 
 
1 Includes net revenue of 0.29p. 
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                                       47.5% 
 
Traditional Energy                           29.1% 
 
Energy Transition                            25.6% 
 
Net Current Liabilities                      -2.2% 
 
 
                                             ----- 
 
                                            100.0% 
 
                                             ===== 
 
Sector Analysis                     % Total Assets     Country Analysis                     % Total 
                                                 ^                                          Assets^ 
 
Mining: 
 
Diversified                                   21.1     Global                                  60.3 
 
Copper                                        11.3     USA                                     16.9 
 
Industrial Minerals                            5.2     Latin America                            8.8 
 
Aluminium                                      2.8     Canada                                   7.9 
 
Steel                                          2.5     Germany                                  4.3 
 
Gold                                           2.0     Australia                                2.5 
 
Nickel                                         1.7     Ireland                                  0.6 
 
Uranium                                        0.8     France                                   0.5 
 
Platinum Group Metals                          0.3     Denmark                                  0.4 
 
Tin                                           -0.2     Net Current Liabilities                 -2.2 
 
Subtotal Mining:                              47.5                                            ----- 
 
                                                                                              100.0 
 
Traditional Energy:                                                                           ===== 
 
Integrated                                    14.7 
 
E&P                                           12.6 
 
Distribution                                   1.3 
 
Refining & Marketing                           0.5 
 
Subtotal Traditional Energy:                  29.1 
 
 
 
Energy Transition: 
 
Electrification                                9.8 
 
Energy Efficiency                              6.6 
 
Transport                                      4.6 
 
Renewables                                     4.3 
 
Subtotal Energy Transition:                   25.6 
 
Net Current Liabilities                       -2.2 
 
                                              ---- 
 
                                             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 11.3% of the Company's net asset value. 
 
Ten Largest Investments 
 
Company                                           Region of Risk                     % Total Assets 
 
Vale                                               Latin America 
 
    Equity                                                                                      4.3 
 
    Bond                                                                                        1.2 
 
Glencore                                                  Global                                5.0 
 
Exxon Mobil                                               Global                                4.7 
 
BHP                                                       Global                                4.3 
 
Teck Resources                                            Global                                3.8 
 
First Quantum Minerals                                    Global 
 
    Equity                                                                                      2.1 
 
    Bond                                                                                        1.4 
 
Shell                                                     Global                                3.4 
 
NextEra Energy                                     United States                                3.0 
 
BP                                                        Global                                2.9 
 
Canadian Natural Resources                                Canada                                2.7 
 
 
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 2.5% during the 
month of March (in GBP terms). 
 
Stock markets rose during the month that saw large swings in interest rate and 
growth expectations. The failure of Silicon Valley Bank in US, a large banking 
partner for earlier stage technology companies and private companies, 
contributed to heightened market volatility. In Europe the decision to combine 
UBS and Credit Suisse further added to uncertainty. The Fed hiked interest 
rates by 25bps, and this shift in interest rate expectations contributed 
towards a rebound in equity markets, with the MSCI ACWI TR Index rising by 
2.8%. 
 
Within the energy sector, an apparent de-risking of energy positions, with a 
potentially new headwind to growth in the form of tighter financial conditions, 
contributed to a fall in the oil price and energy stocks. The price moves did 
not appear to be driven by fundamentals with little evidence of weakness in 
physical demand. After month end, OPEC announced a cut to production targets of 
1 million bpd, which was a surprise, but was in line with prior proactive 
action in October 2022 where OPEC acted to defend the oil price. OPEC no longer 
sees such a threat from US shale oil production of undermining their control if 
they cut production early to support the oil price. Against this backdrop, 
Brent and WTI (West Texas Intermediate) oil prices fell by 4.8% and 1.7%, 
ending the month at $79/bbl and $76/bbl respectively. 
 
Within the mining sector, there have been positive signs that Chinese demand 
will pull through, such as higher steel production rates and improved economic 
indicators such as their Manufacturing PMI, which came in at 51.6. Market 
concerns about increasing risks for another financial crisis and expectations 
for a lower rate hike supported the gold price, which rose by 8.2%. Other mined 
commodity prices were also up due to positive signs on China's reopening, 
including copper and iron ore (62% fe) which rose by 0.6% and 0.8% 
respectively. 
 
Within the energy transition theme, more details emerged around the European 
Green Industrial Plan, which aims to ensure domestic manufacturing capacity 
related to clean tech and is partly a response to the US Inflation Reduction 
Act. Within the energy transition theme, more details emerged around the 
European Green Industrial Plan, which aims to ensure domestic manufacturing 
capacity related to clean tech and is partly a response to the US Inflation 
Reduction Act. At least 40% of the EU's low-carbon technologies, ranging from 
solar panels to heat pumps, will need to be made within EU borders by 2030 
under the newly proposed plans. 
 
27 April 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. 
 
 
 
 
END 
 
 

(END) Dow Jones Newswires

April 27, 2023 06:47 ET (10:47 GMT)