Nextenergy Solar Share Discussion Threads

[wassapper] 16/5/2024 09:13

But apart from that yields 11%. Indeed.

[marktime1231] 15/5/2024 22:23

Well what poor reporting however big and bold you write it.

The actual quarterly dividend just declared is an unchanged 2.09p.

The annual dividend TARGET has been raised for next year from 8.35p to 8.43p which is less than 1% compared to inflation running at around 2%. Which is trivial rather than significant. It heralds a reduction in operating income because they plan to sell off about 15% of assets in order to trim gearing and/or invest in future developments, meaning dividend headroom will compress.

But apart from that ...

[masurenguy] 15/5/2024 18:00

NextEnergy Solar Fund announces dividend target increase and strategic achievements

NextEnergy Solar Fund Ltd (NESF) manager Ross Grier joined Proactive's Stephen Gunnion with news of a significant increase in its latest dividend, marking the 11th consecutive year of dividend growth.

[marktime1231] 15/5/2024 16:48

Standing back from that pressure it is still a silly time to be selling off performing assets while values are low. The whole point of NESF is to accumulate productive assets which they point out cover a superior dividend never mind the interest rate environment.

Where has recent surplus cash flow been deployed, it doesn't seem to have delivered much support to NAV or the share price If the share price has been trailing NAV by 25-35% in the last 6 months you might argue that a little buyback would be money well spent.

Again I'm only quibbling, generally happy with NESF and its super income I just don't want them to spoil things for the long term.

[shareideas1] 15/5/2024 15:10

Yeah - suspect progress on divestment plans is pre-requisite to retiring any equity

[speedsgh] 15/5/2024 12:35

"And no mention of the elephant in the room ... a roughly 25% discount to NAV in the run up to a potential discontinuation vote at the AGM in August."

The Chair did mention potential buybacks but presumably no chance of this until they manage to finally offload some of the remaining assets marked for disposal.

"The Board remains committed to managing the discount, paying down short-term debt, and pursuing attractive growth opportunities, including potential share buybacks."

[marktime1231] 15/5/2024 12:08

Oh my fordtin that is the same proforma mistake which UKW just made and which could have been why about 10% of their shareholders voted for winding up.

Face and palm!!!!

[fordtin] 15/5/2024 12:00

Re; discontinuation vote, it's worth noting that FSFL have 15 recommended FOR boxes running down the left hand column, but a tick in the left box of the 16th row means you vote FOR a discontinuation;

"16 THAT, the Company cease to continue in its present form under Article 168 of the
Company’s Articles of Association. ✓"

If enough people just tick the "FOR all" icon without reading it properly, the default would be to wind it up!

I hope NESF make a better job of presenting the vote.

[marktime1231] 15/5/2024 11:33

At last some meat on the Capital Recycling bones. Apparently 4 operational sites together 186MW are going through third-party due diligence. I wonder if the outlook for broad dividend cover 1.1-1.3x reflects the potential drop in cash flow if 15% or so of income generators are sold off to reduce net debt. Targetting a tiny dividend increase is neither here nor there in that context.

Unless the sales are at a healthy premium it makes me think why sell off performing assets, gearing is still within target. Perhaps NESF are itching to participate in future NextEnergy ventures and want some capital to play with. Which suggests a conflict of strategy between continuing to be a superior income play and being an asset developer.

Disappointed there has been further erosion of NAV but that is the declining power price backdrop for you. And no mention of the elephant in the room ... a roughly 25% discount to NAV in the run up to a potential discontinuation vote at the AGM in August. The prospect of asset sales at or around NAV is clearly not saving the day, so what else are you going to do about it NESF?

edit - which sounds negative but actually things are fine so long as the healthy dividend is well covered and the share price continues to recover steadly.

[spectoacc] 15/5/2024 07:11

3 RNS's in one morning. But do quite like how thorough NSEF are in their reporting, and there's more disposals coming through to reduce the RCF. They give the impression of knowing what they're doing.

[masurenguy] 15/5/2024 07:10

11th Dividend Target Increase

NextEnergy Solar Fund, a leading specialist investor in solar energy and energy storage, is pleased to announce the Board has approved a dividend target of 8.43p per ordinary share for the financial year ending 31 March 2025. In line with the Company's progressive dividend policy, the Board considers that a 1% increase in the dividend target appropriately balances the interests of the Company, investors and other stakeholders whilst taking into account the strength of the prior year's dividend and the Company's attractive c.11% dividend yield, which is currently one of the largest amongst renewable investment companies as at closing share price on 14 May 2024.

[hope1815] 13/5/2024 12:17

Interesting maybe watch March presentation, also Next Energy Capital recently.In the meantime share price moving towards as more institutions add if you follow the 3 monthly update on websites while small shows momentum.

Happy Investing

[fordtin] 13/5/2024 09:37

“Yes at prevailing NAV in 2035 which will be much lower than now "

Is your crystal ball showing you that NESF will definitely not make any investments in future projects between now and 2035?

[marksp2011] 11/5/2024 10:13

Others may have noticed this but the prefs seem to be convertible.

hxxps://quoteddata.com/2018/10/nextenergy-solar-issues-preference-shares/

[wallywoo] 10/5/2024 16:22

Inverted head and shoulders breakout pattern looks confirmed with today's move up.


Great news for the share price over the next few weeks.

[hope1815] 07/5/2024 21:34

Research Tree

2 May 2024 Zonal Pricing Link

hxxps://www.research-tree.com/research/longspur-clean-energy/rema-zoning-in-on-zonal-pricing/59_bd6a51d5-a3e3-4ed0-be14-df9a58107d18

Paragraph 4

Quote "In our coverage universe we see Drax Group* (DRX LN) benefitting through its Cruachan Pumped storage unit, SIMEC Atlantis* (SAE LN) through potential for battery storage in Caithness and NextEnergy Solar Fund* (NESF LN) through new subsidy-free solar as well as its existing assets."

Subsidy free which is what Next Energy will probably do better than the present Similar companies as they are moving towards Subsidy free pricing.

3 May 2024 QuotedData NESF sponsor

hxxps://quoteddata.com/2024/05/nextenergy-solar-fund-market-leading-solar-energy-energy-storage-fund/

The next which I found interesting

29 April 2024

hxxps://realassets.ipe.com/news/nextenergy-reaches-265m-second-close-for-oecd-focused-solar-fund/10072924.article

hxxps://renewablesnow.com/news/nextenergy-solar-storage-oecd-fund-raises-usd-745m-856280/

While reading the first article mentioned NESF and continued growth. The one part that caught my eye was investing in Energy Storage within the UK and EU and other regional projects. There has been steady growth within Energy Storage.

On the above, I thought I would just bring to the attention of people involved with NESF. The energy sector seems to be going into a growth phase.

Happy Investing

[marktime1231] 07/5/2024 12:16

Curious to know what to make of this deal as it relates to NESF.

United Utilities developed a range of solar, wind and hydro renewable energy assets on its own reservoir and water treatment sites and has power purchase agreements in place to buy the power to defray the costs of its own operations. It sold the portfolio to SEEIT for £100M in 2022. Two years later, without any alteration to the generating assets or power agreements SEEIT has sold the portfolio to UK Power Networks for £90M.

You might conclude it is not a good time to be offloading assets, not ones which have locked in subsidies and power purchse agreements anyway. The only people who look good in all this are the UU finance team.

[speedsgh] 07/5/2024 10:53

NESF's Capital Recycling Programme is taking an awfully long time. Launched in April 2023, they have only sold one asset since and even that wasn't to a true third party. That doesn't seem to suggest that there is a queue of buyers lining up. Hopefully we'll hear more news on this alongside the forthcoming dividend declaration/NAV update.

[wassapper] 07/5/2024 09:42

SEIT sales of a solar farm for 4.5% above Sep 23 valuation supports the NAV case there and for NESF:

SDCL Energy Efficiency Income Trust plc is pleased to announce that it has sold its UK onsite solar portfolio, UU Solar, to UK Power Networks Services Holdings Limited, the private networks business of UK Power Networks Group, for a consideration of £90.8 million. The agreed price represents a 4.5% premium to the Company's 30 September 2023 valuation.

[marktime1231] 30/4/2024 17:34

I think the relevance of that reference to UKW is that NESF is also lined up for a discontinuation vote, and the discount here is much wider. Yes the UKW vote could have been a proforma mistake. If it was a genuinely disgruntled group of investors the logic suggests that NESF might be in more trouble, unless it does something to actively close the discount. A buyback or?

[gbcol] 30/4/2024 17:09

Re 870 - the 11% is a bit of a red herring. The AGM resolutions were badly phrased such that anyone that voted “For” all resolutions, as most tend to do, would have also inadvertently voted for windup.

It will be interesting to see how the votes go on the other funds but if they don’t make the same basic error with the resolutions I strongly suspect votes for windup will be minimal.

[cc2014] 30/4/2024 15:46

yeah I read that but it just shows how out of touch some of the fund managers are.

the discount is 12%, the fund isn't short on liquidity, the NAV is a probably a bit punchy and it would take a whole bunch of legal fees to wind it up.

All of which makes it not worth the bother.

[speedsgh] 30/4/2024 15:38

UK Wind dissent blows ‘ominous’ message for renewable funds -

Renewables funds face a reckoning after 11% of Greencoat UK Wind shareholders vote for a windup. Foresight Solar, NextEnergy Solar, JLEN and Aquila European face discount-triggered votes this year...