Foresight Solar Fund Limited ("Foresight Solar" or "the Company")
Q1 2020 Net Asset Value ("NAV") and Operational Update
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Foresight Solar Fund Limited, a fund investing in a diversified portfolio of ground-based solar PV assets in the UK and internationally, announces that as at 31 March 2020 its unaudited Net Asset Value was £597.2 million (31 December 2019: £628.0 million), resulting in a NAV per Ordinary Share of 98.6 pence (31 December 2019: 103.8 pence per share).
The decrease in NAV over the first quarter is largely attributable to a downward revision in power price forecasts as a result of the economic impact of the Covid-19 pandemic. Power prices are currently forecast to be negatively impacted for the remainder of 2020 and in the medium term as a result of a reduction in demand for electricity and a decrease in energy-related commodity prices. The downward shift in power price curves, based upon independent forecasts available as at 31 March 2020, resulted in a negative impact on NAV of approximately 4.6 pence per share.
Among other valuation movements during the period the Company would also like to highlight the recognition of the reversal of the proposed decrease in the rate of Corporation Tax, resulting in a negative impact to NAV of 0.5 pence per share.
The Gross Asset Value (“GAV”), including Company and subsidiaries, as at 31 March 2020, was £1,026.2 million (31 December 2019: £1,071.5 million).
The Company’s next scheduled formal valuation will be undertaken for the 30 June 2020 interim results which are expected to be published in August. This valuation will take into account the latest available power price forecast assumptions, as well as the operational performance of the Company and other variables applied in valuing the portfolio.
The Company’s 723 MW UK portfolio has continued to deliver strong operational performance during the first quarter of 2020. Electricity generation from the UK portfolio was 9% above budget, driven by strong irradiation in March and high asset availability during the period.
Positive progress continues to be made across the Company’s 146 MW Australian portfolio. A temporary export restriction at the site at Bannerton was removed on 23 April 2020 and it is again exporting at full capacity.
The health and safety of all Company stakeholders and their staff remains of primary importance and the Board of Foresight Solar continues to work closely with its Investment Manager, Foresight Group and all key service providers, to monitor the impact of Covid-19 on the Company portfolio. As previously announced on 27 March 2020, there is currently no evidence to suggest that Covid-19 will materially affect the Company’s operational performance.
The Company maintains high cashflow predictability with 67% of expected revenues fixed in 2020 which supports its FY 2020 dividend target. As a result, the Board of Foresight Solar re-affirms the Company’s FY 2020 dividend target of 6.91 pence per share.
For further information, please contact:
Jonathon McManus +44 (0)20 3667 8147
Jefferies International Limited +44(0)20 7029 8000
Gaudi Le Roux
Citigate Dewe Rogerson +44 (0)20 7638 9571