Bluefield Solar Income Share Discussion Threads

[return_of_the_apeman] 20/12/2023 13:52

Seems to have been left behind in the recent rally of ITs

Does this pay 8%pa covered twice by earnings?

[masurenguy] 16/11/2023 07:16

NAV

The Company's NAV as at 30 September 2023 was £834m, or 136.4 pence per Ordinary Share, compared to the audited NAV of 139.7 pence per Ordinary Share ('pps') as at 30 June 2023. This equates to a movement of -3.3 pps and a NAV return for the quarter of -2.4%. The 30 September 2023 NAV is stated after deducting the FY2022/23 fourth Interim dividend of 2.30 pps announced on 28 September 2023 and paid on 6 November 2023.

[gateside] 06/11/2023 15:23

Dividend pay day today.

[flyer61] 03/11/2023 11:57

Glad I bought BSIF. Trying to work out why I can buy USFP at 40p. Yesterdays big bounce up for everyone saw this bounce down.

[the deacon] 05/10/2023 16:02

Purely from a dividend cover point of view, I'd favour BSIF. More than 2x covered, vs USF at or just below 1x

[flyer61] 05/10/2023 14:29

Do I buy more USFP or start a position here? Any thoughts?

[cwa1] 05/10/2023 10:06

XD for 2.3p this morning. Pay day is 6/11

[masurenguy] 28/9/2023 07:27

Next years annual dividend target of 8.8p represents a yield of 7.4% at the current shareprice and the corresponding discount to NAV of 139.7p is 15.3%.

Fourth Interim Dividend Announcement

The Fourth Interim Dividend of 2.30 pence per Ordinary Share (September 2022: 2.09 pence per Ordinary Share) will be payable to Shareholders on the register as at 6 October 2023 with an associated ex-dividend date of 5 October 2023 and a payment date on or around 6 November 2023. The Board is pleased to have declared full year dividends totalling 8.60 pence per Ordinary Share for the financial year ended 30 June 2023, compared to a full year dividend of 8.20 pence per Ordinary Share for the financial year ended 30 June 2022. The dividend for the financial year ended 30 June 2023 is more than 2x covered. Furthermore, the Board has set a target dividend for the 2023/24 financial year of not less than 8.80 pence per Ordinary Share. This is expected to be covered by earnings and to be post debt amortisation.

John Scott , Chair of Bluefield Solar commented: "I am pleased that, following a year of excellent performance, Bluefield Solar has been able to increase its dividend for the 2022/23 financial year to 8.60 pence per share ('pps'), which compares favourably with our original target distribution of 8.40pps. This represents an increase of 4.9% over the prior year's dividend and, based on a share price of 118.2pps on 26 September 2023, offers a dividend yield of 7.3%."

[robertspc1] 14/9/2023 21:44

Maybe just been oversold like all other renewable plays

[williamcooper104] 14/9/2023 19:48

Nope - was wondering too

[cwa1] 14/9/2023 16:38

Frothy today in a frothy market. Anyone picked up on anything?

[masurenguy] 05/9/2023 14:18

"Bluefield Solar Income (BSIF) has a 10-year track record of producing an average underlying total return from net assets of more than 10%, the second highest in the sector after Greencoat UK Wind (UKW). BSIF shares offer investors a prospective yield of 7.4% and discount of 17.6%. BSIF was also one of very few renewable energy funds to announce an uplift in its NAV at 30 June. That NAV uplift came despite a 0.75% increase in the discount rate used to work out the net present value of BSIF’s future cash flows. BSIF is now using a weighted average discount rate of 8%, which looks sensible to me relative to yields of about 4.6% on 30-year UK government bonds.

For the financial year to 30 June, BSIF aimed to generate 8.4p in total dividends per share, and with three quarterly payouts declared it is a safe bet the target will be met. Moreover, the company expects the dividend will be covered twice by earnings after servicing its debt, with substantial earnings growth to follow over the next two years. This is not the sort of confident statement that companies make lightly. When BSIF announces its results at the end of September, it may turn out that this dividend cover estimate will be conservative. BSIF has been able to achieve this by locking in some of the higher power prices that we saw earlier, which gives its board good visibility on BSIF’s future cash flows.

Higher-than-expected inflation is a net positive as this feeds through into the subsidy income BSIF earns. Another feather in BSIF’s cap was locking in low interest rates through an interest rate swap. Apart from the actual level of dividend cover, one other key message in the results will be the board’s new dividend target for the current financial year. In recent years, BSIF has hiked its dividend by about 2.5% a year on average. The high level of dividend cover for the June 2023 financial year might encourage the board towards a bigger increase this time or it might choose to use the surplus cashflow to help fund the company’s sizeable investment pipeline.

At the end of March 2023, BSIF had about 390MW of solar and 125MW of energy storage in construction-ready projects. Building projects can enhance NAV as they are revalued upwards once they are completed and energised and therefore substantially de-risked. Beyond that, BSIF also had solar projects in planning and substantially more solar and energy storage projects in development."
James Carthew: Citywire: 4 Sept 2023.

[masurenguy] 05/9/2023 00:52

Wind and solar power win public backing

A majority of Britons believe that building more wind and solar farms is the best way to tackle high energy bills and that planning laws should be overhauled to speed up their deployment. According to new polling, 74% agreed with the suggestion that “the government should reform planning rules to speed up the deployment of new clean energy sources”.

[18bt] 04/9/2023 14:21

Below from a Citywire article on renewables today:

BSIF’s good record

The contrast with the next-higher yielding fund, Bluefield Solar Income (BSIF) could not be greater. BSIF has a 10-year track record of producing an average underlying total return from net assets of more than 10%, the second highest in the sector after Greencoat UK Wind (UKW).

BSIF shares offer investors a prospective yield of 7.4% and discount of 17.6%. BSIF was also one of very few renewable energy funds to announce an uplift in its NAV at 30 June. That NAV uplift came despite a 0.75% increase in the discount rate used to work out the net present value of BSIF’s future cash flows. BSIF is now using a weighted average discount rate of 8%, which looks sensible to me relative to yields of about 4.6% on 30-year UK government bonds.

For the financial year to 30 June, BSIF aimed to generate 8.4p in total dividends per share, and with three quarterly payouts declared it is a safe bet the target will be met. Moreover, the company expects the dividend will be covered twice by earnings after servicing its debt, with substantial earnings growth to follow over the next two years. This is not the sort of confident statement that companies make lightly.

When BSIF announces its results at the end of September, it may turn out that this dividend cover estimate will be conservative. BSIF has been able to achieve this by locking in some of the higher power prices that we saw earlier this year and last, which gives its board good visibility on BSIF’s future cash flows.

Higher-than-expected inflation is a net positive too, as this feeds through into the subsidy income BSIF earns. Another feather in BSIF’s cap was locking in low interest rates through an interest rate swap.

Apart from the actual level of dividend cover, one other key message in the results will be the board’s new dividend target for the current financial year. In recent years, BSIF has hiked its dividend by about 2.5% a year on average. The high level of dividend cover for the June 2023 financial year might encourage the board towards a bigger increase this time or it might choose to use the surplus cashflow to help fund the company’s sizeable investment pipeline.

At the end of March 2023, BSIF had about 390MW of solar and 125MW of energy storage in construction-ready projects. Building projects can enhance NAV as they are revalued upwards once they are completed and energised and therefore substantially de-risked. Beyond that, BSIF also had solar projects in planning and substantially more solar and energy storage projects in development.

If dividend yield is the main attraction of these three renewable energy funds, it clearly does not make sense that the one with the longest track record, highest dividend cover and good prospects is trading on the highest yield.

[tournesol] 04/9/2023 13:16

My divi was paid today through HL

[gateside] 02/9/2023 19:50

AJ Bell also paid the dividend on Friday into my wife's SIPP

[campervan1] 02/9/2023 17:34

Not me. Nor NBPE from Thursday. HL

[gateside] 01/9/2023 23:55

Yes, paid into my ii account today.

[cwa1] 01/9/2023 23:16

Yes, got it

[gateside] 24/8/2023 18:35

Another director buy today.I sense they see good value at the current share price.

[masurenguy] 22/8/2023 09:33

Cheers - I think that the current shareprices of all the solar companies are undervalued as on average they are all also circa 22%/25% below NAV. Good time to buy imo since directors are doing so and therefore I'm considering some further top ups. FSFL and NESF both have budgets to repurchase shares but BSIF is not following suit at this stage presumably since they maintain a higher ratio of government solar subsidies on their historical assets than those two do.

[pugugly] 22/8/2023 09:11

Timing is critical - Congratulations on yield -