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Bluefield Solar Income Fund Ltd on Thursday said its net asset value per share fell slightly in its financial year, but upped its dividend ahead of its target.
The Guernsey-based income fund focused on UK-based renewable energy assets reported that its net asset value per share fell 0.5% to 139.70 pence at June 30, from 140.39p the year prior. It said the fall in NAV per share was due to higher interest and discount rates, which ‘offset the sharply increased electricity prices that we have been able to capture through our successful power sales strategy’.
The firm said NAV total return plummeted to 5.45%, from 28.16% a year ago.
Bluefield Solar posted total operating income of £49.1 million for the year ended June 30, also falling from £176.1 million in 2022, while total income before tax declined to £46.7 million from £174.6 million. Bluefield noted that its underlying earnings before the amortisation of long-term debt increased to £108.4 million from £66.8 million.
The company declared a fourth interim dividend of 2.30p per share, up 4.9% from 2.09p in September a year ago. This brings the total dividend to 8.60p for financial 2023, up from 8.20p the year prior, and ahead of its 8.40p target. It said it intends to pay at least 8.80p in dividends in the coming financial year.
Chair John Scott said: ‘We are delighted to report on a further period of strong financial performance in this, the Company’s tenth year of operations. Over that decade, we have experienced significant changes in the emergence of renewables as an asset class and as a proportion of UK generation against a variety of backdrops in the investment environment. Solar and wind have grown from 8.5% to 28.8% of indigenous generation in this time.
‘My strong belief is that Bluefield Solar has a major role to play in the future of Britain’s rapidly changing electricity mix and your Board looks with confidence at the challenges and opportunities that lie ahead.’’
Bluefield shares fell 0.1% to 118.08p each on Thursday morning in London.
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