Bluefield Solar Income Share Discussion Threads

[rustle2] 30/4/2020 11:08

probably seeing some knockon across the sector as updated power curves kick in. That's about what I expected and why I highlighted a few days ago. Although FSFL are dropping due to ex-div they will likely suffer 1% worse fall than BSIF with updated power curves and then at some stage we will also get announcements regarding RPI yearly increases. I see these funds as popular for maintaining their dividend but in general I see mostly downside risk here at present so don't see them as a long term hold just at the moment. But then the year also started off with above average sun and wind generation ...

[18bt] 30/4/2020 08:50

I don't think particularly unexpected - we knew power pricing was weak going into 2021 and we knew we were headged for a lot of this year. The issue is whether power pricing will recover and when.

[11_percent] 30/4/2020 08:47

Well....that was not very good. NAV decrease by 6.7%...….sp down 6.5%.

[masurenguy] 30/4/2020 07:50

Unaudited NAV 31 March 2020 and Second Interim Dividend 30 April The Company's unaudited NAV as at 31 March 2020 was £418.7m, or 113.02p per Ordinary Share, compared to the audited NAV as at 31 December 2019 of £447.4m, or 120.75p per Ordinary Share. The impact on the Company's NAV from adoption of the latest power curves is a reduction of 6.7p per Ordinary Share, reflecting the reduced independent revenue estimates, particularly in the period 2021-2024. The Company has 100% of its revenues contracted until 30 June 2020, 88% until 31 December 2020 and 77% until 30 June 2021. For the avoidance of doubt, the 31 March 2020 NAV does not include a liability for the second Interim dividend of 1.95p per Ordinary Share as this has been declared post 31 March 2020. All other core valuation assumptions have remained consistent with the NAV issued in the Company's Interim financial statements for the period ending 31 December 2019. The Second Interim Dividend of 1.95p per Ordinary Share (April 2019: 1.90p per Ordinary Share) will be payable to shareholders on the register as at 11 May 2020 with an associated ex-dividend date of 7 May 2020 and a payment date of 29 May 2020. Furthermore, the Board is pleased to reconfirm its guidance of a full year dividend of 7.90p per Ordinary Share for the financial year ending 30 June 2020. This will be covered by earnings and is post debt amortisation. The portfolio continues to perform extremely well. As at 31 March 2020, generation was 4.8% above target. In respect of the Covid-19 pandemic and business continuity, the Company reconfirms that its investment adviser, Bluefield Partners, and its technical asset management provider, Bluefield Services, and its operation and maintenance provider, Bluefield Operations, are all successfully remote working and there are no foreseen issues around business continuity. As indicated in previous announcements, the Company is reviewing the policy of increasing the dividend in line with RPI.

[rustle2] 24/4/2020 16:28

Do I have it right that we are expecting the next dividend declaration next Thursday and this will also include the NAV ending 31 March, presumably using updated forward power prices?

[masurenguy] 21/4/2020 12:54

"it would be difficult to justify going back to oil with the global shift towards greener power." Quite agree but some peoples perception is not always based upon an understanding of the facts or a rational perspective of the energy market.

[steve73] 21/4/2020 12:17

Oil is probably competitive with Renewables at the current prices, but it's not a big contributor to global electricity supply, and it would be difficult to justify going back to oil with the global shift towards greener power. Coal & Gas are the big fossil fuel sources.

[gateside] 21/4/2020 10:11

Yes, all renewables seem more sensitive to changes in the oil price

[masurenguy] 21/4/2020 10:10

A 5% drop today on a very modest trading volume. This possibly reflects some peoples concerns that solar demand might be affected by the current very low oil price.

[masurenguy] 08/4/2020 10:55

"I've just sold mine." Looks like you made a quick 20% on a short-term trade - well done ! This is one of my two largest long term holds (17%) in my ISA Equity portfolio. The price has held up well during the COVID crash and it is currently yielding me 7.1%

[spittingbarrel] 07/4/2020 14:54

I don't know but I've just sold mine.

[18bt] 07/4/2020 14:22

Is it just cos the sun is shining?

[masurenguy] 07/4/2020 14:10

Now back to end February pre-COVID crash levels ! :o)

[healthtech] 27/3/2020 17:13

NAV per share is 120.75p as of 31 December 2019.

[panshanger1] 27/3/2020 15:59

Apologies my mistake It's been a long couple of weeks !!

[masurenguy] 27/3/2020 15:01

Have you got a recent NAV figure ? The last one I saw was 116.6p - 6 months ago on September 30.

[panshanger1] 27/3/2020 14:53

And still on a reasonable disc to NAV Very rare for this trust

[masurenguy] 27/3/2020 14:51

Good to see a further rise of 3% today - taking this weeks rise to 8% - especially when the FTSE is experiencing a 6% down day !

[masurenguy] 25/3/2020 07:58

RNS Number : 4677H Bluefield Solar Income Fund Limited 25 March 2020 Bluefield Solar (LON: BSIF), a sterling income fund that invests in UK-based solar assets, reconfirms its guidance of a full year dividend of 7.90pps for the financial year ending June 2020. This will be fully covered by earnings and post debt amortisation. Based on yesterday's closing share price the dividend yield on the forecast full year dividend was 7.05%. Over 60% of the Company's revenues are regulated and non-correlated to market based power prices, increasing in line with RPI and with an average duration remaining of 15 years. The balance of revenues is derived from the sale of electricity via power purchase agreements (PPAs). The Company has 94% of its revenues contracted until the end of the current financial year, 88% of its revenues contracted until the calendar year end and 77% until the end of the financial year 2021, providing excellent visibility of earnings over the current and next financial year. The PPAs providers are investment grade entities. The Company has no subsidy free assets and no assets are in construction. The Company's current leverage level is 32% (a combination of long term debt and short term credit facility) to Gross Asset Value. All long term debt is fully amortising over an average tenor of 14 years and is without the requirement for refinancing. The debt service cover ratio is over 2.5 times covered. The Company has also drawn GBP44 million from its short-term credit facility and is in place until 30 September 2022 (if the facility's one year extension is exercised by the Company). As indicated in previous announcements the Company's policy of increasing the dividend in line with RPI in future financial years remains under review, especially in light of the recent fall in power prices. https://www.investegate.co.uk/bluefield-solar-inco--bsif-/rns/general-update/202003250700064677H/

[zero the hero] 23/3/2020 19:21

strutt12 as far as my understanding goes: Total earning 18/19 = £40.7m x 19.12% to shareholders = £7.8m Revenue through FITs = £4.3m so Dividends the company are already paying out are far more than fit earns. The company comment this regards depreciation: The portfolio NAV will depreciate towards the end of the Company's life. The Investment Adviser has been requested to model how the portfolio NAV will move with time, producing long term scenario planning for the Boards' review. The Board has authorised the Investment Adviser to negotiate lease extensions on all active plants, as each successful extension increases the life of the Fund and reduces the depreciation of the NAV. Lastly the prices paid for Solar panels is reducing massively with the latest farms being self reliant on generation prices alone. Happy to be corrected / educated

[strutt12] 23/3/2020 14:28

Masurenguy, Thankyou I have already read this. The fact the panels may last longer, as I'm sure they will, it's the fit payments that will stop after 20yrs we then rely on the wholesale price of electricity which is way below current income. The building of solar farms requires capital and so either debt will increase or funding will be required, this will then become just another solar farm producer and not an income stock.

[masurenguy] 23/3/2020 14:22

strutt12 - checkout the following. "the company was taking a proactive approach, and returning to investing in the construction of solar farms. Wood said Bluefield was one of the first investors to fund assets through construction while listed peers would only buy solar farms that were built and operational. Although the landscape of subsidies was different then, he was confident non-subsidised solar farms were cheap enough to build so that the returns would ‘earnings efficient’." Citywire, 4/10/19 Furthermore, the productive life of solar panels is probably closer to 35/40 years than the 25 originally envisaged. See post #225 hTTps://uk.advfn.com/cmn/fbb/thread.php3?id=30084909&from=202

[strutt12] 23/3/2020 11:22

I'm very close to buying in here but have a question regards returns. As I see it you currently get paid a dividend for 20 years due to government subsidy on solar generation. the return is attractive but what happens after the fit payments stop? The assets will be 25yr old panels with little income so your capital will be lost? I'd appreciate your thoughts.

[spittingbarrel] 20/3/2020 12:02

I've bought back in, I think a vaguely index linked share is worth having in a world of helicopters.

[masurenguy] 13/3/2020 17:38

The FTSE closed 5366 today, which is 29% below its closing position at the end of last year on 31 December. BSIF closed at 130.0 today compared to 139.5 on 31 December, a decline of just 7% over that same period. It is currently my third largest holding, at 7.3% of my overall portfolio, so I'm a very happy holder and may well increase my stake if the price slips a bit further over the next few weeks.