Bluefield Solar Income Share Discussion Threads

[rustle2] 27/4/2021 10:39

Unless someone feels they have to sell out:


But would have thought that would have been across the board rather than BSIF specific. I don't know who used which panels.

[rustle2] 27/4/2021 10:36

Only seems to be BSIF so maybe just a leak of a fundraise?

[gateside] 27/4/2021 10:32

6% drop What's going on?

[18bt] 02/3/2021 07:38

Given the period covered, I found the interims reassuring. The recovery in base load prices and BSIF's ability to achieve more than the average daily rate is encouraging. Irradiation slightly down, but avg power prices higher than forecast, so slightly higher overall. The piepline of subsidy-free new solar assets provides a decent growth story. The large section from the manager on value-enhancements initiatives is well worth reading. Roughly 2/3rds of additional life planning proposals agreed (with 1000% success), but that leaves 1/3 to go - helpfully the effect of that is quantified - a further 2.9pps. They have floated the idea of some long term corporate power contracts which could de-risk some future earnings.

Surely proper carbon pricing must form part of Rishi's green/revenue-raising strategy which could be (though not necessarily) very advantageous for the company.

[masurenguy] 02/3/2021 07:24

Interim Results Summary
31 December 2020

Total operating income £14,189,525
Total comprehensive income before tax £13,485,183
Total underlying earnings(1) £18,678,067
Earnings per share (below) 3.57p
Underlying EPS available for distribution(2) 2.63p
Underlying EPS brought forward(3) 2.03p
Total underlying EPS available for distribution 4.66p
1(st) interim dividend for the year ending 30 June 2021 2.00p
NAV per share 117.12p
Share Price as at 31 December 2020 130.0p
Total Return(4) 3.52%
Total Return to Shareholders(5) -0.37%
Total Return to Shareholders since inception(6) 79.39%
Dividends per share paid since inception 49.39p

Net Asset Value (NAV): £475.7
Dividend Target per Share: 8.00p

Chairman John Rennocks said: " The performance of the Company over the first six months of this financial year has once again been highly pleasing. The Board has been delighted with the services provided in relation to technical management of the Company's portfolio by Bluefield Services and Bluefield Operations during the extended period of the Covid-19 pandemic.

[masurenguy] 03/2/2021 07:35

Interims in 4 weeks on Tuesday, 2 March.

[tartshagger] 23/1/2021 12:33

Correction resistance should have said 137p soz

[tartshagger] 23/1/2021 10:50

The power curves could also send the NAV the other way and start a sharp correction in the share price - as it did about a year ago. The premium is then difficult to sustain.The share price has solid resistance at about 135p and support at about 127p going back months. This suggests the market is cautious about the NAV/power curve relationship going forward - but likes the dividends. The recent oversubscribed placing at 124p makes me think that is a solid support floor. Nevertheless, you are right to be cautious. Let's see what happens to share price on exD day

[18bt] 17/1/2021 16:12

Has anyone got a good feel for what the December forward price curve so showed? The 6 month forward uk wholesale price seems to have strengthened from c£47 at 30/9 to c£54 currently which feels like it should lead to a decent NAV lift. But has it strengthened similarly out along the curve? The blended forward power curves on p74 of the June 20 annual report appear to show a recovery to c£40 at June 2021. At first sight BSIF stands at big premium to NAV, but this looks quite historic to me. There’s an interesting article in the IC this week on NESF which shows the comparisons.

[masurenguy] 11/1/2021 10:32

Looks a good acquisition with their existing income more than covering the cost of the additional debt.

"The acquisition has been financed using the Company's revolving credit facility, which has also been increased, through an accordion mechanism, to £100m. The margin remains at LIBOR + 2.00%.

Following the transaction, the Company's total outstanding debt has increased to £370.4m and the total installed capacity of its portfolio has grown to 612 MWp, to date all of which comprises UK solar assets with high levels of government backed revenue streams paid in sterling. Using the Company's 30 September 2020 unaudited NAV of £424.3m as a reference and including the Company's over-subscribed equity raise of £45m in November 2020, the leverage level of the Company is circa 44% of Gross Asset Value. An updated audited NAV, as of 31 December 2020, will be published when the Company releases its Interim accounts on Tuesday, 2 March 2021.

John Rennocks, Chairman of Bluefield Solar, said: "The purchase of Bradenstoke is further evidence of our ability to source attractive assets with high levels of regulated revenues. This acquisition is immediately accretive to earnings and further underpins our projected results and dividends for the current financial year ending in June 2021 and beyond. The Board and our Investment Adviser continue to carefully assess a strong pipeline of opportunities across both primary and secondary markets."

[18bt] 11/1/2021 09:09

That's a chunky new acquisition, but adds to the net income and dividend paying capacity. Raises pro forma debt to quite a high level, but all will depend on the NAV and the forward price curve.

[williamcooper104] 09/1/2021 14:34

Glad I sold out here and topped up AY (NYSE listed) It's gone nuts on back of blue wave/US green revolution Has a far better PPP/electric power risk profile than BSIF While it's US listed it's U.K. tax resident - so there's no withholding tax on the divided (you cannot claim back WHT if you hold US equities in an ISA, and it's bad if you are holding in a company - makes no difference in a SIPP)

[masurenguy] 09/1/2021 12:51

Thanks for that information. It would appear that his sale was either to generate income from the shares that were issued to him or by cashing in some share options. If Armstrong still maintains a "substantial shareholding" and none of the other main board directors have sold either, I would not consider the recent sales by him and Le Page as being indicative of anything negative.

[tartshagger] 09/1/2021 11:39

Ah, I have just been informed that Armstrong is part of the Investment Advisor team. These guys accept renumeration in shares - for example 616,092 new Ordinary Shares were issued to the Investment Adviser in respect of the variable fee for the financial year ended 30 June 2019, representing a total consideration of GBP 699,080.

Armstrong and the other PDMR's also qualified for share options in 2018 which were triggered after the agreed milestones had been met, from memory these amounted to 5% of the share capital. Armstrong's sale last week may have been possible because the "lock-in" period had expired. He also transferred 37,000 shares to his personal SIPP last week.

Or, he may have just wanted a deposit for a new residence. Armstrong is a smart guy. As far as I can ascertain, he still has a substantial shareholding.

[masurenguy] 09/1/2021 11:16

Okay - I didn't see the correction on the Le Page announcement. I don't know what Armstrong's "large holding" in BSIF was. Do you know what it was prior to the 250,000 sell since he is not a director?

The fact still remains that none of the other main board directors have sold any shares over the past 18 months apart from the Le Page sale last month. That sale halved his holding from 70,000 to 35,000.

[tartshagger] 09/1/2021 10:39

The Paul le Page dealing RNS was corrected from a purchase to a sale the next day. Armstrong had a large holding in BSIF as he was instrumental in identifying the opportunity, finding the finance and setting Bluefield up and arranging for the LSE listing with IT status. He is also a noted 'dip buyer' In the US his sale of stock would be classified as "insider selling" especially as its so close to the next xD date.

[masurenguy] 09/1/2021 10:21

Paul Le Page bought 35,000 shares @128.2p last month, he didn't sell them.
Armstrong is a PDMR not a Board Director.
None of the main board directors have sold shares in the past 18 months.
John Scott was previously the last main board director to deal in BSIF shares. He bought 60,000 @132.8p in 2019, roughly where the shareprice is today and currently holds circa 512,000 shares.

[tartshagger] 09/1/2021 09:50

Slightly concerned that PDMR Directors have been selling. Paul Le Page, a PDMR Director sold 35,000 shares in December. And James Armstrong, who has been involved in BSIF from the begining sold £250,000 worth last week.

Anyone know why PDMR Directors have been selling? This goes exD early next month.

[18bt] 04/1/2021 12:35

I agree the world and renewables have moved on apace. There is no longer any need for a subsidy on solar pricing - the price per watt generated of solar panels has fallen dramatically and foreast to fall further this year and next - see for instance: which interestingly says that UK solar power is the cheapest in Europe. That's not to say that Govts can't screw this market - they could add costs and levys and e.g. could reform business rates. But with the race to net zero I feel reasonably confident on a 5-year horizon. Potential upsides include a proper carbon trading scheme which would further penalise fossil fuels including gas.

[gateside] 04/1/2021 11:53

The world of renewable energy has moved on leaps and bounds since they were in power.It's 2021 now - look ahead not back.

[williamcooper104] 08/12/2020 14:02

They are moving into the sector Look at Orstead I suspect they want to develop rather than own yield co's

[18bt] 08/12/2020 13:58

I've been ruminating on whether the solar funds like BSIF could be take-over targets for big power companies (formerley called oil companies) who are looking to invest heavily in non-carbon assets. I can't quite decide whether what they would do would be to buy up the management companies who have the expertise or buy the assets themselves, or possibly both. The investment trust status would have to be cancelled if anyone owned more than 50% I think, but that shouldn't worry them as they would be exempt from tax on dividends paid up by the individual solar companies underneath. It's quite difficult to justify a decent ROCE for them, but if the financing was leveraged (and they could probably issue the new "green bonds" as part of burnishing their green credentials), they could probably generate an acceptable levered return. The long term power prices locked in by the FITS should be quite attractive compared to the volatility of the oil price. After all, BP has bought Chargemaster and Shell's NewMotion is one of Europe's largest electric-vehicle charging providers and Shell has a presence in the retail electricity market. ENI has just bought a 20% stake in the Dogger Bank offshore windfarm and the big US oil cos are well behind the curve thanks to Trump. A bit of a ramble, but anyone any views?

[petewy] 04/12/2020 11:25

agreed Williams. Moving into USF.

Anyone interested in VDTK, Great British solar product. IT site is amateurish.

[masurenguy] 03/12/2020 18:44

The placing @124p is likely to be a short term drag on the shareprice. Not a LTH issue on a yield basis.