Bluefield Solar Income Share Discussion Threads

[fordtin] 03/8/2023 08:25

Magic = re "if they extend into Storage."

According to the latest fact sheet they have battery storage assets in construction.


"• As at 31 March 2023 the Company had 390MW of solar and 125MW of battery storage assets fully consented and in construction or pre-construction. The projects have connection dates between 2023 and 2028. The first development to enter the construction phase is Yelvertoft, the Company’s 48MW CfD-backed solar PV project in Northamptonshire, which is targeting operation in Q4 2023. In addition, Mauxhall Farm, a co-located 44MW solar PV and 25MW battery project, has signed an EPC contract for the solar construction and is targeting connection in Q2 2024. The battery construction is expected to follow shortly after the solar is built."




from interim results presentation 28/2/2023;

"Ready-to-build
• 450MW, made up of 325MW solar and 125
MW storage projects either in or expected to
enter construction and energise by 2026,
requiring funding of c. £267m1

In Planning
• 216MW of solar projects currently in planning
In development
• A further c. 409MW of solar projects and c.
240MW of battery projects in development"

[18bt] 22/6/2023 07:42

I presume that the increase in the facility took effect on 31/5 and that they have since drawn a further £53m, but this announcement begs a few questions. This is on top of the £13om term loan (increased from £110m) with NatWest announced on 2/5. We need an update on where they are with the development pipeline (which was 1.38GW at the time of the interims). But at least Yelvertoft (49MW)is due to come on stream in Q4 and is fixed price and its revenues are protected by a CfD.

As an aside, the Electricity Generator Levy doesn't take account of the increasing discount rate which effectively makes new developments more expensive - windfall taxes are always badly designed.

[masurenguy] 22/6/2023 07:26

Revolving Credit Facility Increase and Extension

Bluefield Solar is pleased to announce a £110.0m increase to its existing committed £100.0m revolving credit facility ('RCF'), bringing the total committed amount to £210.0m. The facility also has an uncommitted accordion feature allowing it to be increased in size by up to a further £30.0m. The term of the facility has been extended to May 2025 and the facility's margin remains unchanged at 1.9%.

The increase in the RCF provides the Company with additional liquidity to support further investments in high-quality infrastructure assets from Bluefield Solar's near-term investment pipeline. The RCF is currently £153.0m drawn, with the Company's total outstanding debt now standing at approximately £584.8m. Using the Company's 31 March 2023 unaudited net asset value ('NAV') of £850.2m as a reference, the leverage level of the Company stands at circa 41% of Gross Asset Value ('GAV').

[a0002577] 21/6/2023 12:07

Same discount on NESF but yield is 8.5%. much the same with FSFL

[masurenguy] 21/6/2023 08:33

There is a 14% discount to NAV at the current price and the yield is now 7.0%.

[jimbobbaby] 18/6/2023 19:53

Sunshine in recent weeks should deliver some excellent electricity generation results - might go some way to offset interest rate increases.

[masurenguy] 11/5/2023 07:16

Unaudited NAV 31 March 2023 and Second Interim Dividend

The NAV as at 31 March 2023 was £850.2m, or 139.1p per Ordinary Share ('pps'), compared to the unaudited NAV of 142.4 pps as at 31 December 2022. This equates to a reduction of the 31 March 2023 NAV of -3.3pps (vs 31 Dec 2022 NAV) and a NAV total return for the quarter of -2.3%.

A second interim dividend of 2.10p per Ordinary Share (May 2022: 2.03 pps) will be payable to shareholders on the register as at 19 May 2023 with an associated ex-dividend date of 18 May 2023 and a payment date on or around 12 June 2023. Dividends declared to date for the current financial year now stand at 4.20 pps.

For the avoidance of doubt, the 31 March 2023 NAV does not include a liability for the second interim dividend of 2.10p per Ordinary Share as this has been declared post 31 March 2023. Furthermore, the Board is pleased to reconfirm its guidance of a full year dividend of not less than 8.40p per Ordinary Share for the financial year ending 30 June 2023. This is expected to be covered by earnings and is post debt amortisation.

[masurenguy] 14/4/2023 08:26

"The good news for investors in renewable energy in the UK is that the share prices have fallen below asset values, making it impossible for listed funds to raise new capital for investment. Instead, they can concentrate on completing current projects and squeezing out better returns. New supply should therefore tail off. The bad news is that politicians are keen to invest directly in a desperate drive to achieve carbon reduction targets. The assumption is that such investment will be lucrative but the history of the public sector suggests the opposite. A surge of new capacity will lose money for taxpayers and reduce returns for everyone." Moneyweek 13 April 2023

The BSIF NAV per share was 142.40p on 31 Dec so @137.8p the current discount to NAV is 3.2%

[masurenguy] 28/2/2023 07:30

Interim Results
Highlights

As at 31 December 2022/ 30 June 2022

Net Asset Value (NAV) Dividend Target per Share
GBP870.7m GBP858.4m FY23 8.40pps 8.12pps
NAV per share
142.40p 140.39p

Six month period to 31 December 2022 / 31 December 2021

Underlying Earnings(1) Total Shareholder Return(2)
(pre amortisation of debt) 6.98% 5.68%
GBP51.4m GBP21.4m

Total return to Shareholders
Underlying Earnings per share(1) since IPO
(pre amortisation of debt) 101.59% 81.69%
8.41p 4.31p

Total Return(3)
4.38% 9.61%

Underlying Earnings per share
available for distribution(1)
(post amortisation of debt)
6.26p 2.57p

Environmental, Social and Governance (ESG)

Forecast annual CO2e savings of over 163,000 tonnes (2022: 120,000 tonnes)
Approximately 292,000 homes powered with renewable energy (2022: 215,000) 4
Over GBP200,000 to be paid to community benefit schemes (2022: GBP154,000) 5

Construction and Development Pipeline
-- 49 MW under construction
-- 466 MW approved 1.38 GW
-- 216 MW in planning (956 MW Solar, 424 MW battery)
-- 649 MW potential capacity

[masurenguy] 23/1/2023 07:05

First Interim Dividend Announcement

Bluefield Solar is pleased to announce the first interim dividend for the financial year ending 30 June 2023 of 2.10p per Ordinary Share (January 2022: 2.03p per Ordinary Share) payable to Shareholders on the register as at 3 February 2023, with an associated ex-dividend date of 2 February 2023 and a payment date on or around 3 March 2023. Furthermore, the Board is pleased to reaffirm its guidance of a full year dividend of not less than 8.40p per Ordinary Share for the financial year ending 30 June 2023 (2022: 8.20p). This is expected to be covered by earnings and to be post debt amortisation.

[18bt] 23/12/2022 08:05

Decent purchase and debt now back to their target, so looks like any more will require equity raise.

[gateside] 01/12/2022 20:32

Fair bit of buying and a nice price rise at the end of the day

[masurenguy] 22/11/2022 07:32

UNAUDITED 30 SEPTEMBER 2022 NET ASSET VALUE, AUTUMN STATEMENT UPDATE AND DEVELOPMENT UPDATE

Bluefield Solar announces the Company's net asset value as at 30 September 2022. Unless otherwise noted herein, the information provided in this announcement is unaudited.

The Company's NAV as at 30 September 2022 was £884.0 million, or 144.6 pence per Ordinary Share, compared to the audited NAV of 140.4 pence per Ordinary Share ('pps') as at 30 June 2022. This equates to a movement of +4.2 pps, a NAV total return for the quarter of 3.0% and gearing (based on the Gross Asset Value of the Company) of 34%. The major factors behind this change are the increase in the sale price of electricity in the UK, offset to an extent by the Company's adoption of a higher discount rate. The 30 September 2022 NAV is stated after deducting the FY2021/22 fourth Interim dividend of 2.09 pps announced on 30 September 2022 and paid on 4 November 2022. Excluding the deduction of the fourth interim dividend would result in a NAV total return for the quarter of 4.5%.

Following the Chancellor's Autumn Statement on 17 November 2022, the NAV as at 30 September 2022 has been updated to reflect the potential impact of the Electricity Generator Levy ("the Levy"). This results in an estimated reduction of 3pps in the NAV. The 30 September 2022 NAV included an increase in the equity discount rate to 7.25% (an increase of 0.50% from 6.75% as at 30 June 2022), reflecting increases in both the Bank of England Base Rate and 15 year Gilt yields since the 30 June 2022 NAV. Inflation for 2023, applied only on subsidies and costs, has been amended to 5.5% in line with expectations from forecasters that decreases from the highs of 2022 will be more gradual than previously expected. All other core valuation assumptions have remained consistent with the NAV issued in the Company's financial statements for the period ended 30 June 2022.

As the Autumn Statement has provided material confirmation of the Government's approach to energy policy, the Directors have attempted to estimate what the impact of this would have been on the Company's 30 September 2022 NAV. This follows two steps; removal of the contingency applied to Q3 power forecasts until 2025 (increasing the September NAV by 11.0pps) and application of the Levy (reducing the September NAV by 14.0pps). The combined effect of these changes results in a prospective reduction of 3.0pps and an adjusted 30 September 2022 NAV of 141.2pps.

Dividends

The first interim dividend for FY2022/23 will be declared in January 2023. Target dividends for FY2022/23 are not less than 8.40 pence per Ordinary share.

[carterit] 18/11/2022 17:51

Funds such as Greencoat UK Wind (UKW) and Bluefield Solar Income (BSIF) with the highest exposure to subsidised CfD and ROC revenues should see a smaller reduction in NAVs, said Winterflood’s Ratnasingam.

UK Wind rose 3% yesterday, one of the biggest risers in the sector, and rallied another 3.7% today. Foresight Solar (FSFL) and NextEnergy Solar (NESF) gained over 2% yesterday.

The latter’s rise may have surprised Ratnasingam as he believed FSFL could be the most vulnerable to a knock to NAV as it had recently set its power price assumption at the higher end of the sector range of £80-£175/MWh for 2023 and £65-£150/MWh in 2024.

By contrast, he said NESF was ‘relatively attractive’ because of its investments in battery storage through a 500MW joint venture with Eelpower. Investor’s Newell estimated it was in line for a reduction in NAV of just 0.3%.

However, further clarification is needed as Chande included NESF, BSIF and UKW in a list of five that also included Renewables Infrastructure Group (TRIG) and JLEN he believed could see reductions of around 2.5% in NAV.

‘Arguably this is already reflected in discounts,’ he said. Until the smoke clears, however, those gaps between share prices and NAVs look set to remain.

[williamcooper104] 18/11/2022 07:48

Typical buy the rumour sell the fact Of rathe sell the rumour buy the fact

[masurenguy] 18/11/2022 07:31

Dan McGrail, chief executive at trade association Renewable UK, was unhappy. ‘This windfall tax on low carbon power risks deterring investment, at a time when the chancellor should be incentivising clean energy. Unlike in oil and gas, under this levy companies which are making significant investments in renewables will get no tax relief and will be hit by a higher windfall rate.’ The levy will apply to companies generating more than 100 gigawatt-hours per year of electricity from nuclear, renewable and biomass sources. Battery storage and pumped storage hydroelectricity will be exempt.

Stifel analyst Iain Scouller said although the tax was punitive and discouraging to investment, it removed a cloud over the sector that could see renewable funds rally from recent lows. ‘Many of the funds are currently trading on sizeable discounts to NAV and we think the removal of uncertainty may encourage some further positive re-rating,’ he said.
Citywire 18/11/22

[topvest] 17/11/2022 20:33

My reading of it is that it will be a big £nil for almost all solar parks as they will not > £10m per company. It may impact the larger offshore wind farms though. I might be wrong.

[gateside] 17/11/2022 19:43

nerja - TRIG went ex dividend today - so once that is taken into account, it was up on the day.

[nerja] 17/11/2022 17:33

Ok I will put my hand up, I am totally totally in the camp of what the hell does it mean for all the solar ,wind, battery etc trusts. Looking at the funds I think they show a lot of confusion as well , a little bit of oversold buying but no real conviction. I bought some of these trig and gsf in profit , but have not a scooby doo where I stand with the tax situation. I am maybe a no nothing guy BUT if there are many more peeps like me in the camp of the unknown then once some bright spark enlightens us all these trusts could move very quickly one way or the other, so I am will be keeping a sharp eye on any updates on the real implications on this tax.