Bluefield Solar Income Share Discussion Threads

[a0002577] 26/2/2019 13:22

Hi Tartshagger I also hold RedT, Why don't you write to them? I will if you would like

Interestingly the board said this about prolonging asset life

"The equity IRR implies that the future cash flows of the Company, based upon the Directors' Valuation of GBP609.7m, which includes the conservative assumption of a zero terminal value of each asset after c.25 years of operational life, are expected to deliver a c.6.6% gross annualised return on today's NAV.

For the Company's portfolio this equates, within the Directors' Valuation as at 31 December 2018, to a weighted average portfolio life of 21.3 years. The Board has elected not to adopt a longer assumed life, even for assets with extended lease or planning permissions at this stage."

Unlike some other companies which have already marked up their NAV .to account for increased asset life.

[tartshagger] 26/2/2019 13:05

Buried in the Chairman's statement is the following highly interesting observation:-

"When extending lease terms, the Investment Adviser is using the opportunity to add further value through including new rights to install and operate battery storage facilities so that when the commercial climate for such infrastructure becomes attractive, these facilities can be rapidly deployed across the portfolio."

I also hold RedT, the British Vanadium based energy storage systems company. I would like to know if the Board has received a presentation from RedT, on the face of it their new Gen3 energy storage would be an excellent fit and if installed, could result in a significant re-rating here

[a0002577] 26/2/2019 12:13

Also bought in (again) today at 1.283667 per share - showing as a sell on ADVFN

[masurenguy] 26/2/2019 08:34

Topped up this morning @128.63, which is showing as a Sell.

[18bt] 26/2/2019 07:58

There's some interesting detail in the invstment manager's report including this explanation of clipping
"The reason behind this fall in efficiency is a result of the plants experiencing inverter saturation, commonly referred to as 'clipping', during periods of unexpectedly high irradiation. Inverter saturation occurs when the DC power from the PV array exceeds the maximum input level for the inverter.

In the UK, due to lower average irradiation levels (e.g. when compared to Southern Europe) it is common to oversize the generating capacity by a factor of 1.2 to 1.4 (i.e. building more module capacity than inverter capacity) to ensure generation is maximised at times when irradiation is below peak levels. An example might be a plant which is licensed to deliver 5MWp to the grid being built with a generating capacity of 6MWp; whilst 1MW will be 'clipped' at times of peak irradiation, the plant will be able to deliver 5MW for significantly more hours in the year than is the case where 5MW is the peak output available from the panels.

The consequence of clipping is that during periods of exceptionally high irradiation the output from the modules will exceed the permitted input of the inverter. At this point, whilst the plant will be generating above forecast expectations, since the inverter is not capturing all of the available DC generation the performance ratio of the plant (i.e. conversion efficiency) reduces."

This is where advances in storage technology could add further value in the future.

[18bt] 26/2/2019 07:44

Interims out - strong operational performance. And an indicator that they might start growing the asset base again: "We expect that this patience and discipline will soon be rewarded with the potential arrival of an economic UK market for solar assets without subsidy, for which the Company is well prepared to apply its highly effective investment model for primary market assets by funding through construction." Meanwhile, taking the 6% yield and a little asset growth.

And rather hidden in the detail is this: "the Company was able to take advantage of these [electricity price] rises and re-strike the majority of our contracts. This has delivered medium term certainty over a large percentage of our revenues and we have also seen our average weighted power contract price increase to in excess of GBP58 per MWh, up from GBP45 in the first half of 2018. As many of these contracts were struck for in excess of two years our shareholders will benefit from these higher priced contracts for a prolonged period, with most of these higher prices becoming effective in or shortly after January 2019.

So great visibility on earnings and dividend increases for the next 2 years

[zero the hero] 09/2/2019 16:36

A nice long read on this, probably nothing new to some of you, but certainly useful to someone like me



Click on the PDF on the bottom

[a0002577] 31/1/2019 10:52

The power prices are a rolling lagging indicator - i.e they are being set now for the next three years - in other words the benefits from the move to £60+ "is only just beginning to be fed into your Company's revenue generation." as they say.

It will generally apply to all six Green Infrastructure Cos so not the time to sell methinks.

[masurenguy] 30/1/2019 15:44

Thanks A0002577 - an interesting extract from the AR which provides a much more relevant insight into the shareprice rise over the past 4 months. The yields that I quoted related to my average price
of a stock rather than in relation to todays price. In fact I did make an arithmetic error where BSIF is concerned. On the basis of a projected dividend of 7.8p for this year, it is actually 6.75% against my current average price.

[a0002577] 30/1/2019 15:27

Masurenguy, you rightly ask "Why would the progress at Greencoat rub off on Bluefield? They have renewables in common but Greencoat is in wind while Bluefield is in solar. These energy sources are based upon quite different economic equations and also future logistical and market potential.

There is however, one factor common to all renewables which is the price they get paid for electricity. It is worth reading this from the latest Annual Report of BSIF

When we did the IPO in July 2013, short term fixed price power contracts (12 to 36 months) were being struck in excess of GBP55 per MWh. By Q1 2016, the power market for contracts of a similar tenor were trading in the GBP30s per MWh. From this low point the market started to recover. Today I can report that new contracts are consistently in the GBP50s per MWh and the most recent contracts have been struck in the GBP60s per MWh. This upturn is only just beginning to be fed into your Company's revenue generation. We should add the caveat that we are not forecasting that the market is going to keep marching forward but the Investment Adviser has prepared some interesting analysis on the short term drivers in the UK power market, which highlights why we have seen this rebound since 2016 and also why this recent increase seemed to have surprised some of the independent forecasters.

Clearly, power prices are the biggest variable largely outside our control. I say 'largely outside our control' because whilst we cannot influence the prevailing pricing within the European and UK gas markets we can enhance the value of the contracts that are available to us. This means having flexibility in respect of the tenor of the power and ROC contracts and flexibility in the choice of the provider of the contract. We have that flexibility for in excess of 75% of the portfolio and each year our Shareholders benefit from this where we are able to maximise the value of the available contracts that come on to the market.

You also say that BSIF is your second largest holding. I make the yield just under 6% at todays price. JLEN, FSFL, TRIG, NESF and UKW are all a tad lower

[masurenguy] 30/1/2019 13:12

New ATH this morning ! :0). BSIF is the second largest holding (12.9%) in my Equity ISA a/c and my yield here is now 7.1%. My largest holding, CLIG (16.0%) is also now yielding 8.7%.

[masurenguy] 30/1/2019 09:26

Why would the progress at Greencoat rub off on Bluefield? They have renewables in common but Greencoat is in wind while Bluefield is in solar. These energy sources are based upon quite different economic equations and also future logistical and market potential

[rambutan2] 22/1/2019 18:27

Worth noting reason for leg up in share price in last few days:

[18bt] 22/1/2019 12:28

Minor but interesting point. The Financial Reporting Council now publishes the list of companies whose audits have been reviewed by their Audit Quality Review Team. The list published on 8th Jan includes BSIF 2017 audit, so it will be interesting to see if they make any reference to this in due course. They would have had to announce or correct if anything serious came out of it. As KPMG are the auditors, this might give us comfort e.g. on the audit of the valuation.

The FRC also produce a list of companies whose accounts have been scrutinised and BSIF isn't on that list, so it is the audit not the accounts which has been reviewed.

[masurenguy] 22/1/2019 10:57

New ATL this morning with buys @128p ! :o)

[masurenguy] 11/12/2018 10:46

Added a few more @121p this morning - ADVFN showing it as a Sell.

[a0002577] 13/11/2018 11:17

That was quite a top up Masurenguy. Seems that the trouble is the bid-offer spread which changed immediately after your buy.

[masurenguy] 13/11/2018 09:48

Topped up at 124.0745p this morning but ADVFN are showing it as a Sell.

[masurenguy] 13/11/2018 08:25

Projected dividend increase of 3.4% in the current fiscal year compared with a 2.5% increase last year.

RNS Number : 1218H
13 November 2018

Unaudited NAV at 30 September 2018

Bluefield Solar, a sterling income fund that invests in UK-based solar assets, announces its net asset value ('NAV') as at 30 September 2018. Unless otherwise noted herein, the information provided in this announcement is unaudited. The Company's NAV at 30 September 2018 was £422m, or 114.10p per Ordinary Share, compared to the NAV at 30 June 2018 of £419m, or 113.28p per Ordinary Share. The 30 September NAV is stated after deducting the dividend of 2.03p per Ordinary share announced on 26 September 2018 and paid on 26 October 2018. The 30 June NAV was stated before deducting the dividend of 1.80p per Ordinary share announced on 31 July 2018 and paid on 31 August 2018.

The dividend of 2.03p per Ordinary paid on 26 October 2018 represents the fourth interim dividend in respect of the financial year ending 30 June 2018, resulting in total dividends paid in respect of the 2017/18 financial year of 7.43p per Ordinary share (7.25p for the financial year 2016/17). As stated in the financial year ('FY') 2018 annual report, the Board has indicated that target dividends for 2018/19 are 7.68p per Ordinary share.

[masurenguy] 01/11/2018 09:55

Shareprice still increasing by an average 1% per month despite recent marketplace volatility. With a yield of 6.4% on my average investment cost and 5.9% againct the current Offer price for any further top ups, what's not too like ? :o)

[tournesol] 16/10/2018 07:57

asmodus

no. never had a broker who did. currently with Hargreaves Lansdown previously with Killik both helpful in this regard.

[asmodeus] 15/10/2018 15:48

And doesn't your Broker make a charge for this tournesol? I know Redmayne Bentley do.

[a0002577] 12/10/2018 09:48

Agreed Tournesol - but so much easier to have one or more (I usually buy five or more) to get your name on the register and it gives you other rights as well. For example, if there is a bit of a tizwazz going on in the company it gives others a chance to contact you cos they can see your name. hopefully not the case with BSIF - but in other instances where there has been trouble in the company I have found it extremely useful.

You never know when a company will blow up. Aviva and Tesco spring to mind as does the Patisserie scandal of this week.

[tournesol] 11/10/2018 17:15

You don't have to have a shares registered in your name in order to get a copy of the AR, admission to the AGM and the right to vote.

All my shares are held via nominees and I do all the above as a matter of routine.

All I do is tell the nominees I intend to go to the AGM and instruct them to do the necessary. That typically involves them giving me a letter of representation which allows me to attend and vote. If I want a paper copy of the AR I just phone and ask for one. You don;t even need to be a shareholder to do that.

[zero the hero] 11/10/2018 15:28

I have nothing but respect for an answer like that, now I know, thanks