Bluefield Solar Income Share Discussion Threads

[cwa1] 14/10/2021 08:05

XD for 2p today, pay day 8/11

[18bt] 11/10/2021 11:55

Finally caught up with the investor meet company presentation. Some points of emphasis made:
- all power sales are with investment grade counter parties
- the 88% fixed through PPAs and subsidy payments for year to June 22 is above previous forecast revenue assumptions
- there are 300mw of PPAs to be restructured this year at current prices that would be an uplift of £7 per MW
- good chart on the compression of discount rates in the sector over 7 years
- inflation increase in the valuation is 3% to 2025 (increased by one year); that feels fairly conservative in the current climate; sensitivity of valuation to inflation is c£14m for every 0.25%
- BSIF has the highest level of regulated assets in the sector
- they rate battery storage as the highest risk/reward of technologies in the renewable sector: they want double digit IRRs on developments

Broadly they emphasised all the reasons why we will invest in BSIF - the predictability of UK solar generation.

They did kindly answer my question about PPA strategy - broadly at any point in time they are 90% hedged. Forward contracts are 1-3 years; they have Winter and Summer prices.

[18bt] 05/10/2021 14:44

The statement is well worth a read on future electricity pricing, particularly on the reasons why the power curves decline post 2030. Suffice it to say,that I will buy on weakness as I see little chance that enough generation will be added in the UK by 2030 in the face of huge increases in demand so that prices start declining. In the short term that have commented about the short term Ppa pricing, but not much on the quantum of the contracts.

[11_percent] 05/10/2021 10:01

Ok....cheers.

[cwa1] 05/10/2021 09:58

Fourth Interim Dividend Announcement



Bluefield Solar (LON: BSIF), a UK income fund focused on acquiring and managing UK-based renewable energy and storage projects to generate stable, long term dividends for its shareholders whilst furthering the decarbonisation of the energy system, is pleased to announce the Company's fourth interim dividend for the financial year which ended on 30 June 2021 (the 'Fourth Interim Dividend').



The Fourth Interim Dividend of 2.00 pence per Ordinary Share (September 2020: 2.05 pence per Ordinary Share) will be payable to Shareholders on the register as at 15 October 2021, with an associated ex-dividend date of 14 October 2021and a payment date on or around 8 November 2021.



The Board is pleased to have declared full year dividends of 8 pence per Ordinary Share for the financial year ending 30 June 2021 compared to a full year dividend of 7.90 pence per Ordinary Share for the financial year ending 30 June 2020. These dividends are covered by earnings post debt amortisation.

[11_percent] 05/10/2021 09:58

Dividend: 8.0p / 7.90p

Ok divi increased.......can anyone see when it will be paid.

[masurenguy] 05/10/2021 07:38

Bluefield Solar (LON:BSIF), a UK focused income fund that invests primarily in UK-based solar assets, is pleased to announce its Annual Results for the Year Ended 30 June 2021.

Highlights
As at 30 June 2021 / 30 June 2020
NAV: 115.83p / 117.01p
Underlying Earnings PAD: £48.6m / £44.6m
Underlying Earnings PAD: 9.16p / 9.53p
Dividend: 8.0p / 7.90p

Results Summary: For the year ended 30 June 2021
Total operating income: GBP25,921,639
Total comprehensive income: GBP24,517,576
Total underlying earnings: GBP48,663,667
IFRS Earnings per share: 6.25p
Underlying EPS available for distribution: (inc brought forward reserves)(2) 11.09p
Total declared dividends per share for year: 8.00p Earnings per share carried forward (See below) 2.67p NAV per share: 15.83p

John Rennocks, Chairman of Bluefield Solar, said: "We are pleased with the strong earnings performance in the period despite covering a particularly challenging time for the energy markets due to the turbulence caused by Covid 19. We were pleased to deliver a sector leading dividend of 8p per share, post debt amortisation to shareholders while the NAV also held up well which we believe will support the share price going forward. The robust nature of the earnings from the portfolio during the pandemic highlights the durability and defensive nature of the Company's investment strategy. We look forward to updating the market on further attractive investment opportunities in due course."

[11_percent] 04/10/2021 10:29

All Britain’s electricity to be green by 2035

A lot of people are going to be shivering in the dark.

[masurenguy] 04/10/2021 08:22

All Britain’s electricity to be green by 2035

Boris Johnson will this week announce that all of Britain’s electricity will come from renewable sources by 2035 as he seeks to reduce the country’s dependence on gas and other fossil fuels. The prime minister will use his conference speech to commit his party to plans to hugely increase investment in renewable and nuclear energy as Britain faces a crisis caused by a surge in the cost of gas. He is expected to argue that taking all electricity from green sources would be a significant step towards the government’s ambition to hit net zero emissions by 2050, and reduce exposure to fluctuations in gas prices. Renewable energy generated 43% of Britain’s electricity needs last year, and gas, oil and coal contributed about 40%. The remaining capacity was filled by nuclear. Johnson has already pledged to increase Britain’s offshore wind production from 10GW of electricity a year — enough to supply 10m homes — to 40GW by the end of the decade. He wanted to “go further” and ultimately hit 60GW a year.

[masurenguy] 04/10/2021 07:55

Questor also noted that renewables contributed 42% of the UK’s electricity production in Q1 this year, which is likely to increase through further investment in the sector. ESG investment has doubled over the past year, which provides ongoing support to the BSIF share price and its current 10% premium to NAV. The relatively stable high dividend yield could prove attractive if inflation rises and interest rates remain low and therefore recommends BSIF as a Buy ahead of the results that are due tommorrow.

[cwa1] 04/10/2021 07:34

Just a small concluding snippet to respect copyright:-

However, in Questor’s view, Bluefield Solar offers relatively attractive long-term income prospects as part of a diverse portfolio. Its high-yield and relatively stable dividend prospects could prove to be useful allies if inflation rises and interest rates remain low.

Its plans to diversify into other forms of renewable energy assets could reduce risk and improve long-term returns. Furthermore, the rising popularity of ESG-related investments may support, and even extend, its current premium to Nav.

Questor says: buy

[panshanger1] 04/10/2021 06:47

Questor covering in the telegraph today

[18bt] 01/10/2021 10:17

I’ve asked a question in advance about ppas for the Investor Meet presentation

[11_percent] 30/9/2021 22:40

Ok....cheers.

[cwa1] 30/9/2021 15:36

According to the website:-

SEPTEMBER 2021
Fourth Interim Dividend to be declared in respect to the financial year ending 30 June 2021

I'd guess it'll probably be announced with, or around the same time as, full year results on 5/10/21

[11_percent] 30/9/2021 13:21

When is the next ex-divi date guys.....I cant seem to find it.

Cheers.

[18bt] 30/9/2021 10:07

Thanks Zero, that’s useful. I was basing my thought on this sentence from the The “Company's strategy of fixing prices over periods of 12-36 months means the portfolio has the flexibility to capitalise on periods of above-forecasted power prices, as it successfully did during September 2018, but also to avoid fixing at points of significant market deterioration (e.g. in April 2020 and May 2020).”

But they don’t seem to disclose what PPAs are in effect at each period end.

All will be revealed next week. I’m glad they are going to present via the Investor Meet Company. It’s a good forum with a usually v high level of sensible engagement from some v well informed PIs.

[zero the hero] 30/9/2021 08:38

18BT I don't think so, BSIF use PPAs (Power Purchase Agreement) which fix prices over periods of 12–36 months and can hedge against power prices going low. The down side to this is that it also hedges the purchasers from the spikes we have seen recently. PPA's apply to about 65% of their portfolio and the ret is still under the old government FIT legislation.

Some of the PPAs are valid over much longer periods, with around 20% having PPAs in place until 2029. This article probably explains from the reverse view, better than I can

[18bt] 27/9/2021 11:12

Does anyone have any views as to whether BSIF gets a short term kicker from the increase in UK electricity prices? A note from a UK economist sent to me this morning notes that "wholesale electricity prices ... have almost tripled since March". I know the biggest effect is the forward price curve off which NAV is priced UK irradiation which affects the solar performance, but this graph shows the steady climb this year in "day ahead" prices:

[rustle2] 20/9/2021 13:51

Or they may take the opportunity to fundraise!

[tartshagger] 20/9/2021 09:12

I do wish that the MM in BSIF would stop dropping the share price so much after the auction. The price then shoots back up at the open the next day. Those of us building a long term postion here would like to take advantage of such volatility. I expect BSIF to re-rate given the recent dramatic increase in electricity prices.....

[bewooden] 17/9/2021 19:53

As far as I can tell by far the most cost effective energy storage solutions are in physical storage rather than chemical. For example compressed liquid air storage.
With regards to hydrogen it is much better suited to wind power where you need a permanent ‘load’. The load is currently just an energy sink which wastes what is not needed but provides the turbine with a force which prevents it from over spinning and burning out. That makes surplus energy from wind an ideal companion for green hydrogen. This doesn’t apply to solar though so it’s likely better stored in other ways in such cases.

[18bt] 16/9/2021 18:11

Naive, yes I think they are - but in order to achieve the £2500/mwh price, you would have had to store it and release it at precisely the right time. So you need systems which can use avg wind speed and solar production predictions to optimise the sale.