Nextenergy Solar Share Discussion Threads

[speedsgh] 03/8/2023 10:31

Has the dividend to be paid in Sept been declared yet? I can't find the rns?

[vas007] 03/8/2023 10:24

Let's hope the turn around is near also with the ex-dividend on 17Aug 2023 at an increase to 2.09p.

[cruelladeville] 13/7/2023 19:32

Absolute bargain at today's price.

[speedsgh] 12/7/2023 15:37

New QuotedData research note...

Recycling champion -

From an operational standpoint, NextEnergy Solar Fund (NESF) is doing well. As we discuss on page 5 of this note, the board, encouraged by a high proportion of predictable revenue, has felt comfortable in declaring an inflation-matching 11% increase in NESF’s dividend per share, and is confident that this will be well-covered by earnings.

In the face of a difficult market for fundraising (expanding the fund by issuing new shares), NESF’s managers propose recycling capital from its portfolio of subsidy-free solar assets. In the short term, the proceeds would be used to reduce borrowings (gearing) and fund a potential share buyback. Longer-term, the proceeds would be used to secure new solar and energy storage opportunities that present a suitable return profile.

After a good 2022/23 financial year, new investments could boost the NAV and cashflows further. Share buybacks could turn the tide on NESF’s share price discount to net asset value (NAV) and lower debt levels could calm investors’ nerves. Combine this with a prospective dividend yield of 9.1% and NESF’s future looks bright.

[continues]

[cruelladeville] 01/7/2023 11:04

Yes mine a bit later than usual. But arrived safely by afternoon.

[scrwal] 30/6/2023 12:41

Div not in my ii ISA account which is very unusual.
Just gone in as I was typing.

[cruelladeville] 29/6/2023 20:06

Yes, I'll be recycling tomorrow's dividend back into NESF shares.

[marktime1231] 29/6/2023 12:29

The consequence of heavy debt in a higher interest rate scenario is stomping on NESF and other renewable energy stocks. This will become a bargain point to enter or add when the inflation outlook improves. It would also help if NESF could update us with good news about its divestment and debt reduction plan.

In better news according to the sheffield monitoring project uk solar contribution in June exceeded 1.8TWh another new monthly record to follow May's. About 7% of total UK demand. My own domestic solar generation is well ahead of budget and I expect it will be for NESF too, a welcome boost to cash flow.

[topvest] 26/6/2023 13:02

They certainly are, but in my view it doesn't make much sense them being below the Truss mini-budget. Time will tell.

Another observation. Helen Mahy was Chair of MedicXFund in Guernsey. After about a year of her being appointed chair they were merged with PHP. This could well happen here and may have been one of the reasons that she got the job, along with a good track record at TRIG. A merger may make some sense I suppose if the recycling doesn't yield tangible benefits.

I would like to see all these renewable energy trusts stick to the UK, rather than dabbling overseas. Better focus!

[11_percent] 26/6/2023 12:46

topvest,

I am looking add here, but currently the Renewable Generator funds are in freefall......i will hold off till this ends.

Most of them showing a 2-3p drop this morning.

[topvest] 26/6/2023 11:16

I've taken an initial position here. The 8.5% yield in an ISA and potential for a capital uplift over the next few years hits my 10% target return. Its not quite clear to me why NESFs return from inception is only 7% which is c1% below average and c2% below TRIG, but Helen Mahy's appointment is encouraging. I met her a few times at National Grid and she is a very impressive lady, having done a good job at TRIG. I am hopeful that she will sort things out. Solar assets with 11 years remaining is a bit ex-growth, but lets see what she can do. There is a continuation vote lurking so the clock is ticking. Is it just me thinking this, but some of the infrastructure trusts are now looking quite good value with a 6.5% to 8% yield. Its still not that easy to access more than 3-4% interest without locking up your money, so long-term that yield is attractive, particularly on a discount. You can't build these assets for their valuations (before discounts) and climate change is not going away!

[cc2014] 23/6/2023 08:12

Perhaps if these Trusts actually valued the NAV at something sensible rather than using every trick in the book to raise the NAV to unrealistic levels the discount wouldn't be there and they could avoid the continuation vote difficulties.

IMHO they are causing their own problems.

What I do know is that if there are concerns over the continuation vote it puts investors off and then the discount becomes self-fullfilling.

[speedsgh] 23/6/2023 07:59

NextEnergy Solar needs to win back investors to avoid continuation vote -

Annual results show high-yielding renewables fund pulling out the stops to avoid triggering a continuation vote next year if its shares continue to trade below asset value...

[gateside] 20/6/2023 15:09

The high dividend will eventually stop it falling.When?No one knows.

[11_percent] 20/6/2023 14:26

Where is this going to stop falling at.

[tuftymatt] 19/6/2023 21:03

Good to see the Chairman adding today 👍🏻

[marktime1231] 19/6/2023 18:34

Let's not take investment advice from Fool, shall we? Liberum also have a positive view targetting 125p (eventually ?)

[1c3479z] 19/6/2023 16:17

Starmer's GB Energy smacks of Wedgie Benn's wonderful Britoil from years ago, a way of nationalising business that ought to be private sector - dismal idea...designed to garner SNP voter's mandates. Benn was regarded as on the extreme left of the party at the time so look where we are now.
Though to be fair, the Tories could have done more to face down their backbenchers opposed to onshore wind in England, the cheapest form of green energy generation...

[masurenguy] 19/6/2023 15:35

"The dividend record is pretty good. Over the past few years, the compound annual growth rate (CAGR) has been running at just over 2.5%. And with the share price near 102p, the forward-looking yield for the trading year to March 2024 is around 8%. And I see that valuation and income level as attractive and what I’m looking for is boring and predictably steady progress in the figures. Indeed, an investment in the company is unlikely to produce whizz-bang surprises in a portfolio.

Net asset value rose a smidgen and the total dividend for the year is just over 5% higher than the prior period. Borrowings seem to be under control and there’s strong asset backing from the assets anyway. One possible risk is that the share price has shown a fair bit of volatility over recent months and years. However, with the stock near the bottom of its recent trading range and a focus on the yield, I see the current level as attractive. As part of a diversified long-term portfolio of stocks, NextEnergy Solar Fund is a no-brainer stock for me to buy now." Motley Fool

[marktime1231] 19/6/2023 10:53

Hmmmm. Nothing new since the NAV-error announced 5 weeks ago. Installed capacity and underlying NAV growth flat, no reportable progress on the divestment of assets, no reportable progress on coupling solar with storage. And I agree it is puzzling how they can increase the dividend to 8.35p with such confidence having only delivered 8.2p eps last year despite slightly exceeding solar generation target. Presumably because the bulk of generation price is RPI-linked?

The cost of servicing the RCF is a heck of a bite out of NAV, along with the looming cost of new development commitments it explains the enthusiasm for divesting profitable assets. NESF has too much debt. The other reason for raising funds ... a buyback to narrow the approx 10% share price discount to NAV ... must also be pressing on those with stock price related remuneration plans.

I would say "could have been worse" rather than "very positive". We should be keenly looking out for news of real progress. The one encouragement for me is that UK solar generation since year end has been stellar (ha ha), who would have thought it at 55 degrees north. NESF cash flow should be ahead of budget.

[bountyhunter] 19/6/2023 10:32

Starmer probably doesn't even know himself.
A lot of the spin seems to be around wind turbines :)

[gonsan] 19/6/2023 10:15

Has anybody have any idea on how this proposal from Labour on creating a "GB Energy" company would impact companies like NESF and other renewable companies?
Here below an extract from this BBC news link:


"Sir Keir will say: "Labour will deliver lower bills, good jobs, and energy security for Scotland and the whole UK, as Britain leads the world in the fight against climate change."

One of Labour's initiatives will be to provide more incentives for areas to take part in new clean energy projects. Under Labour's plans, GB Energy - the new publicly-owned firm based in Scotland at a location yet to be decided - would play a key role in getting that message across.

It would oversee the return of profits from successful projects to local councils. The councils could then use that income to reduce council tax, pay for improved public services or simply provide rebates on energy bills.

Labour says GB Energy could end up providing up to £600m per year to local councils to invest in green infrastructure and a further £400m annually in low interest loans for community projects.

These community loans would be designed to ensure small projects could benefit from the expertise of GB Energy while also generating money for local areas."

[nerja] 19/6/2023 09:13

Thanks for that mwj1959, that’s the part that gets me, if the fixed was higher than the 1x-1.1x then fine but the energy prices are going down as can be seen from the 21.7p drop to 8.2p now, the cost of servicing the debt is up, they are trying to sell off stuff to raise money to try to clear debt, I am just trying to clarify how it works like that.

[mwj1959] 19/6/2023 08:53

The 8.35p is for the next FY, so not a comparison with current 8.2p earnings. As the say in statement "Forecasted target cash dividend cover of 1.3x-1.5x, of which 1x-1.1x is from fixed revenues for the financial year ending 31 March 2024."