Bluefield Solar Income Fund Limited (LON:BSIF), the London listed UK income fund focused primarily on acquiring and managing solar energy assets, has announced its net asset value (NAV) as at 31 March 2024, and the Company’s second interim dividend for the current financial year, which ends on 30 June 2024. Unless otherwise noted herein, the information provided in this announcement is unaudited.
Unaudited Net Asset Value as of 31 March 2024
| (pps) | ||||
| Unaudited NAV as at 31 December 2023 | 136.0 | |||
| Power prices | -0.3 | |||
| Operational updates | -0.7 | |||
| FY24 first interim dividend | -2.2 | |||
| Share buyback accretion | 0.1 | |||
| Other movements | 1.0 | |||
| Unaudited NAV as at 31 March 2024 | 133.9 | |||
The NAV as at 31 March 2024 was £815.7 million, or 133.9 pence per Ordinary Share (‘pps’), compared to the unaudited NAV of 136.0 pps as at 31 December 2023. This equates to a movement in the quarter of -1.5% and a NAV total return for the quarter of 0.07%.
The published power curves from the Company’s three leading independent power forecasters all showed lower price forecasts at 31 March 2024 for the near term compared to the previously published power curves. However, due to the fact Bluefield Solar has over 92% of power sales hedged for FY2024 and 81% through FY2025, the Company’s earnings are materially insulated from the impact of reductions in near term power prices, such that the downside impact was limited to 0.3 pps.
The decrease in operational updates reflects a slight revision to the cost of the Company’s Revolving Credit Facility as well as the minor impact of inflation being slightly below earlier assumptions.
The Company launched its share buyback programme following the release of the interim report on 28 February 2024 and repurchased 2.45 million shares during the period to 31 March 2024, providing an additional 0.1 pps of NAV accretion to shareholders.
The completion of Phase One of the Strategic Partnership with GLIL Infrastructure (‘GLIL’), an investment of £20 million of equity, alongside £200 million from GLIL, to fund the acquisition of a 247MW portfolio of UK solar assets, and movements in working capital all contributed to the 1.0 pps gain in the NAV over the quarter shown in the table above under Other movements.
Gearing
The Company’s UK holding companies and subsidiaries have total outstanding debt of £598 million, with a leverage level of circa 42% of Gross Asset Value (31 Dec 2023: 41%).
Second Interim Dividend
The Second Interim Dividend of 2.20 pence per Ordinary Share (May 2023: 2.10 pence per Ordinary Share) will be payable to Shareholders on the register as at 24 May 2024, with an associated ex-dividend date of 23 May 2024 and a payment date on or around 24 June 2024.
Dividend Guidance Reaffirmed
The Board is pleased to reaffirm its guidance of a full year dividend of not less than 8.80 pence per Ordinary Share for the financial year ending 30 June 2024 (2023: 8.60 pence). This is expected to be covered by earnings and to be post debt amortisation.
