Nextenergy Solar Share Discussion Threads

[mantelsloris] 28/6/2024 10:45

Nice steady recovery, looking forward to that div to come through today

[yump] 27/6/2024 23:11

They keep banging on about GB energy accelerating our renewable progress, but every time they are asked how, they don’t say.

[keyno] 27/6/2024 22:54

We'll find out soon enough!

[garycook] 27/6/2024 12:55

How will NESF fair under a Labour government ?

[cc2014] 26/6/2024 15:24

Looks to me like a fat finger. Someone sold about a million shares and then likely bought them all or most of them back

[prokartace] 26/6/2024 15:12

This share likes wanging around! ! minute down nearly 5% then within no time up 1 1/2 %

[yump] 25/6/2024 10:05

I’ll have to ask a planner exactly what local law is at work that allows a set of irrelevant objections to stop developments a big community majority wants.

Fwiw I can’t see Labour taking a tough stance with planning to progress renewables faster, although I guess they might not have as much pressure from their own cronies who live in the areas that are open to improving our self-reliance on energy.

[tag57] 25/6/2024 00:29

Yump, probably because the silent majority can’t be bothered to do anything about it.

[yump] 25/6/2024 00:09

Re planning “obstructions”, how come in a democracy a tiny majority can cause Brexit, which is democracy at work, but when 80% of a community support an onshore windfarm, a handful of people can stop it ?

In fact, how come in a democracy, minorities have so much power ?

[bountyhunter] 24/6/2024 19:42

all thinking the same here, a good sign, if they don't mess it up :)

[joey52] 24/6/2024 15:40

ammons, you know that and so do I but, I bet Labour don't and mess it up.

[ammons] 24/6/2024 15:14

IMHO if Labour are serious about nut zero then they will need all the help they can get from companies like NESF and all the others that are already in the business.

[wallywoo] 24/6/2024 13:27

Since this new labour government green energy company will just be an investment company (rather than buy and run green energy projects itself). Will this likely benefit NESF if labour win??In my opinion there's a good chance.

[prokartace] 24/6/2024 12:30

Quickest ever unrealised profit.bought at 77.81. Seconds later 78.40 bid!

[bountyhunter] 20/6/2024 17:30

Bought in today, looks like it's about to bounce to me as well and directors buying as notified today. Also should be free from Labour interference given the green credentials.

[cc2014] 19/6/2024 18:01

Hard to work out Downings thought process:

Option 1. Spent £27m for an asset at 114% of NAV
Option 2. Buy £27m of NESF shares at 30% discount to NAV

[chucko1] 19/6/2024 16:06

Which is good - because we can buy cheaply and thoughtfully as others are “forced” out and the sellers outweigh the buyers. But not great for those who are concerned with MTM (for whatever reason).

Same applies to four trillion other ITs - or so it would seem.

[cc2014] 19/6/2024 13:00

You will have your chance Boadicea soon as there is a wind-up vote coming up.

What was interesting that came out of the presentation today is that retail shareholders have moved from 3% to 18% of the register over the last 18 months.

I didn't write the figure down but there was also a figure around the reduction in shareholdings of the top 10 shareholders. I can't remember properly but roughly they were down around 10%.

There just aren't enough retail investors to absorb what large shareholders are selling across the Board on all the Investment Trusts. Or perhaps more precisely not enough retail shareholders to absorb the shares at the speed the large shareholders want to go.

[cousinit] 19/6/2024 12:22

To me, there is an element of holding out for lower interest rates in what the Board has done.

Clearly there is the general supply/demand imbalance in the market for renewable trusts.

It is also clear that borrowing at 6.5% doesn't make great sense for solar assets that are at the low end of the risk/reward spectrum for renewables (especially if you have a large proportion of contracted revenues).

The share buyback might help (a bit) in closing the discount. But the long term strategy that the Board seem to be hoping for is that with the buyback, lower interest rates and selective capital recycling that the trust may actually get back to a level where equity can be issued and the pipeline executed (with debt levels/costs not being excessive).

Will be interesting to see if they look to lock in some of the RCF debt at fixed rates if there is an opportunity to do so at below (say) 5%.

[boadicea] 19/6/2024 12:01

Buying a company at a discount to its already undervalued book assets sounds like an asset strippers paradise.
The market must be irrational. But as has been remarked famously before, the market may remain irrational longer than one can remain solvent.
However, the logical action taken to a conclusion is to sell up, liquidate, and distribute the profit.

[cc2014] 19/6/2024 08:15

It's a pipeline. No orders have been placed. There is no cost to not building the pipeline.

Other renewable funds such as GRID have simply let parts of the pipeline go

[masurenguy] 19/6/2024 08:13

Well yesterdays solar asset sale was at a premium to its booked asset value. This confirms the current value of its portfolio. Buying shares back at a discount to NAV also further enhances it and this, combined with the asset disposal programme, should see the discount to NAV reduce and trigger a further shareprice rise as we saw late on yesterday.

"NextEnergy Capital have worked tirelessly over the last year to deliver two successful phases of the Company's Capital Recycling Programme at attractive premiums for NextEnergy Solar Fund shareholders. The attractive premium to carrying value for both projects further reinforces our view that the share price discount remains unjustified. The team remains focused on continuing to drive forward the remaining phases of the Capital Recycling Programme to further drive down short-term debt levels and return value to investors." Ross Grier, Chief Operating Officer.

[shareideas1] 19/6/2024 07:48

The better asset is the shares at a discount...

[grahamg8] 19/6/2024 07:43

So how do you realise the £500m pipeline of projects when the undrawn RCF is only £40m? Borrow more money which is the opposite of what is supposed to be happening, or issue more shares, again the opposite of what is happening. I do take the point that with a share yield of 10%+ and debt interest of 6.4% it is more cost effective to buy shares than pay off debt. 'Recycling' should mean selling one asset and using the cash raised to buy another better asset.

[insanityideas] 18/6/2024 23:40

Additionally to the good points Chucko made... The dividend payments that a fund gives out are equivalent to the interest payments on a loan. Buying back shares means fewer shares receiving a dividend so the overall cost of the dividend is reduced.A fund Issuing shares is like taking out a very long term loan (with the flexibility to cancel interest payments). Buying back shares is like paying down a loan. Long term Shareholders should view this as increasing the security of the dividend, short term shareholders can take their profits should this positively affect the share price.Buying back shares when they are cheap is a smart move (and explicitly written into the terms of the fund - if price falls below NAV directors have authority to buy back shares). It's only throwing money away when companies do it when the share price is at an all time high.If they don't currently have any decent assets to recycle funds into purchasing then this buyback puts those funds to use by reducing dividend outgoings. The only potential red flag is why can't they find suitable assets (that's part of the asset managers core job), and in the current climate a new share issue wouldn't get a good price, tying their hands on raising back this capital until share price gets closer to or above NAV.