Nextenergy Solar Share Discussion Threads

[the deacon] 06/4/2023 16:02

Added here and ORIT too today. Haven't held SSE for a while, but do own a few other utilities transitioning into major renewable players - such as Engie, Enel and RWE. I suspect I'll be back in SSE when the time is right

[cruelladeville] 06/4/2023 15:48

Done. Topped up here and ORIT.

[cruelladeville] 06/4/2023 09:19

Considering selling remaining SSE holding ahead of next year's dividend cut. Anyone thinking the same? I could take on board more NESF too.

[tuftymatt] 06/4/2023 08:30

Yeah I have been doing the same too at sub 105 and also took profit in SSE.

Good luck all 👍🏻

[vas007] 05/4/2023 14:20

I also topped up too , here .

[cruelladeville] 05/4/2023 10:08

Topped up my holding here today by taking profits from SSE. Ratchets up my portfolio yield ahead of SSE reducing dividends in the coming year.

[melton john] 30/3/2023 11:00

Shame we don't have a UK industry to benefit. Combination of too much union power and inept short term management killed off most of it leaving solar to the Chinese, wind to Denmark and any other electrical engineering to Siemens etc.

[vas007] 30/3/2023 09:05

UK Gov. Has just announced a massive renewable energy program.

[cc2014] 14/3/2023 15:02

I found post 528 extremely helpful

[pyemckay] 27/2/2023 16:42

great thread on why NESF move to battery storage might not be well thought out.

[spectoacc] 23/2/2023 06:56

NAV is a very moveable feast - am I alone in thinking it could be any one of a large number of figures? Tweaking the discount rate in particular is a regular occurrence.


"Updates to NAV assumptions

The Company has made the following key updates to its valuation assumptions for the 31 December 2022 NAV calculation:

-- An increase to the unlevered discount rate by 0.5% in response to market conditions.
-- Updated inflation assumptions to reflect the latest available third-party inflation data.
-- Updated power price forecasts capturing the latest available third-party advisor long-term power curves.

-- Removal of the discounts applied to the unhedged portion of the portfolio power prices, replaced by the expected impact of the UK government's proposed electricity generator levy ("EGL"), based on draft legislation as published."

[rambutan2] 22/2/2023 22:03

Noted, and makes good sense imho:

NESF intends to expand its energy storage activities and is consulting with shareholders to amend its existing investment policy to increase the limit in standalone energy storage systems (not ancillary to or co-located with solar PV assets owned by the Company) from 10% up to 25% of the Gross Asset Value (“GAV”) (calculated at the time of investment). All other policy limits are to remain the same.

This will enable NESF to take advantage of existing energy storage opportunities in the UK via its relationship with EelPower Ltd, which will complement and diversify NESF’s existing large portfolio of solar assets.

See informative Energy Storage Strategy doc here:

[cruelladeville] 13/2/2023 22:08

Definitely a buy when as now on a discount to NAV, for sure.

[tuftymatt] 13/2/2023 15:37

Yeah I am a buyer when it drops intraday to 109 / 110 right now.

Like this one for the sector / divi and potential share price growth too 👍🏻

[cruelladeville] 13/2/2023 15:22

Ex dividend this Thursday, pay day 31st March.

[cruelladeville] 10/2/2023 17:36

Decent entry opportunity here whilst trading at below NAV?

[speedsgh] 10/2/2023 11:23

Yes, 5% increase on corresponding quarter in 2022 but this is not new news. Target dividend of 7.52p (1.88p per quarter) for the current FY was announced in their 2022 Full Year results released in June last year and today's announcement is for the 3rd quarterly dividend of 1.88p in the company's current FY. Only 4 months to go however to find out what their target dividend for FY24 will be.

-------------------



Dividend Target:

NESF provides a regular attractive dividend for income seeking investors. For the financial year ended 31 March 2022, the Company declared a total dividend of 7.16p per ordinary share, with the dividend remaining covered throughout the year. The Company has a progressive annual dividend policy, and when appropriate, the Board considers increasing the target dividend paid to shareholders. To date the Board has increased the target dividend every year since the Company listed in 2014. The Board of NESF recently approved a target dividend of 7.52 pence per ordinary share for the year ending 31 March 2023, representing a 5.0% increase from the previous year. This increase is above the 4.1% calculated RPI rise forecast by HM Treasury for the 2022 calendar year.

The Company has achieved all its dividend targets whilst maintaining a covered dividend throughout the eight years and continues to target a covered dividend beyond this financial year.

[tuftymatt] 10/2/2023 07:46

Very good to see the Q3 divi rise to match the previous two payments 👍🏻

[masurenguy] 10/2/2023 07:12

Dividend increased by 5%.

Interim Dividend Declaration

NextEnergy Solar Fund is pleased to announce an interim dividend of 1.88p per share for the quarter ended 31 December 2022. The interim dividend of 1.88p will be paid on 31 March 2023 to shareholders on the register at the close of business on 17 February. The ex-dividend date is 16 February.

[speedsgh] 07/2/2023 11:49

The last 2 paragraphs of this article...



... Elsewhere, the infrastructure and renewable energy sectors often highlight the degree of inflation linkage within their revenue streams, and this might present the best opportunity. While many funds have rowed back on their original pledges to link dividend increases with inflation, there are some that have stuck with the policy, albeit there tends to be a lagged effect here.

For example, NextEnergy Solar (NESF) has increased its target dividend at least in line with the UK retail prices index every year since it listed in 2014. Its 7.52p dividend target for the 12 months to 31 March 2023 is 5% higher than the dividend for the previous year. That target was set in April 2022 when the rate of increase was influenced by the 4.1% rate of inflation for 2021.

[bodgeman] 06/2/2023 15:49

Question - why is it the nesf always seem to trail behind fsfl when they are quite similar in most respects. Both have similar gearing, both are into battery storage, both are geographically spread. If anything nesf look like a better proposition with better dividend rate. Is it that this trust is just overlooked?

[cruelladeville] 30/12/2022 08:39

1.88p dividend today. Last dividend before 2023.

[speedsgh] 13/12/2022 13:11

Update research from QuotedData -

Earnings visibility underpins dividend target

It has been a busy few months for NextEnergy Solar Fund (NESF) and the listed renewable energy sector. The share price may have come under pressure from the threat of windfall taxes - see page 6 - and rising discount rates (used to discount NESF's future cash flows into a present-day valuation for its net asset values - NAVs - see page 5), but the picture on these points is clearer, and - as the latest results show - NESF's NAV is still making positive progress.

Strong forecast earnings cover for the dividend and NESF's forward sales of power give the board confidence to maintain its policy of at least matching dividend hikes with inflation. If shareholders give their approval for further expansion in this area, a push into energy storage offers another route to earnings growth.

The discount is wider than its long-term average. However, given the above, we think the shares can move back to trading at a premium to NAV and the fund can get back to raising fresh equity to back its extensive pipeline of revenue accretive investments.

Full research:

[acceptablereply] 08/12/2022 05:52

Been reading about a a company called CMG Cleantech recently that seems to have promising Solar tech. Is there any way to explore the technical details of assets that NextEnergy Solar fund invests in, to compare them to offerings from e.g. CMG?