To provide ordinary shareholders with attractive risk-adjusted returns, principally in the form of regular dividends, by investing in a diversified portfolio of primarily UK-based solar energy infrastructure assets.
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… and what looks like a profit warning from GRID. Bailed GRID on the RNS today. The UK will I suppose sort itself out eventually.
Decent trading update from Harmony Energy (HEIT) today which should read across well for NESF.
NESF held up despite market turmoil.
"Iran’s IRGC seizes ‘Israeli-linked’ ship near Strait of Hormuz"
Most of Middle East oil flows through the Strait of Hormus. Troble there means oil prices going up. Renewable energy becomes more impotant then ever now. It's cheap, clean and ralatively more reliable too.
Thanks Actury63, I had a look at seqi, follow what you are saying there..
I was looking to use some of my isa allowance today and of all the sectors investment trusts in such that we are discussing appear to be most forgotten of all sectors, all the rest, or many at all time highs, therefore Ive put a little more into this.... Plus no stamp duty on nesf, fantastic.... I feel energy is a great investment over the next 10 years, might get some weakness if a full blown recession emerge but with the green electrification move underway, the future should be bright for this one... Maybe a little sp appreciation once they get the debt refinanced
Hi Dadean,
I should have mentioned that I also invest in Greencoat UKW, about the same amount as in NESF. Obviously, wind is different from solar and UKW has a higher dividend cover and a stronger commitment to increase future dividends in line with RPI. That said, the current dividend yield on NESF is so high that it would be a good investment without any future dividend increases.
As both NESF and UKW are exposed to electricity prices, I consider SEQI to be a more risk-diversified fund than either. SEQI is currently my largest investment.
Hi Actuary thank you for sharing the notes below. All things Considered I believe nesf compliments well with ukw holdings and I'll likely look to increase my holding albeit I'm terribly overweight energy, while including other holdings, thanks
Hello Dadean,
The dividend cover was barely 1.0 2-3 years ago when the share price was over 100p. I think the one of the differences with UKW is that NESF invests more in projects under construction, which is riskier than investing in operating assets, but produces sudden uplifts in projected revenues when the assets become operational. Another difference is that more of NESF's future revenues from electricity sales are hedged through long-term contracts, which is less risky but less profitable when prices are rising. As regards debt, half of NESF's gearing is from a preference share issue at a fixed 4.75p dividend per share, which has turned out to be a very good decision. Reducing RCF gearing must be because of higher interest rates and the fact that NESF's future revenue stream may now be riskier because of its battery investments.
Just bought in myself after looking around for somwhere to place a £few thousand this morning. This could well be regarded as a "defence" stock in the not too distant future as there is not much chance of their regular cash flows being affected by anything except a significant fall in energy prices. Not saying that could not happen but they have probably already fallen as much as is likely.
Russia may have put sleeper explosives on Britain's offshore wind farms to knock out power in a conflict, ex-head of Royal Navy warns.
https://www.dailymail.co.uk/news/article-12109873/Russia-sleeper-explosives-Britains-offshore-wind-farms-ex-head-Royal-Navy-warns.html
Hi, i took a position in this co last week as felt it was a great opportunity, i can get a little carried away with ideas and always hone in on the positives, for that reason i've been trying to find reasons that i am wrong on this, and see the weaknesses with this investment. I have to admit i'm struggiling a little to find....
therefore is anyone willing to share what they don't like about this company?
i could find little to be honest, all i could note was i don't like the low dividend cover, i don't like that they are selling assets to pay down the RCF, a little desparation there? I don't like that they are scared by their level of debt... At the end of the day they are making like a 8% surplus over interest expense -- whats not to like about that? they should be borrowing more not less as it's all acredative.........
Im invested in UKW also, wind farm, i've since learned wind farms are slightly more profitable per installed mw capacity, albeit higher maintance..... the wind farm at the moment has near 2x div cover on a 7.5% yield, so they are generating more profit, plus they are investing half of the profit in new assets, as well as borrowing more to build more assets....
hope i don't appear too negative, but as they say good to look for reasons whey we might not be right
thank you
There's ample room for the renewable energy production to grow.
The vast majority of planet-warming carbon dioxide emissions since 2016 can be traced to a group of 57 fossil fuel and cement producers, researchers said on Thursday.
https://www.reuters.com/sustainability/climate-energy/majority-recent-co2-emissions-linked-just-57-producers-report-says-2024-04-04/
My first purchase of 5,000 . Timing 🤔 ?
Thanks for the links 2227, appreciated. Had a look at the YouTube videos suggested too. Useful. Saw an interesting comment in one set of accounts where they said that they thought the levy would not materially affect them, albeit they paid more tax that year... Funnily I've just realised I've walked through one of their solar farms once years ago, when out on a old walk I knew... small world thanks
US gas prices are recovering from 30 year lows, the UK's BESS switching mechanism is in disarray, higher interest rates .... perceptions of "woke" feeding into renewables .... not a lot going for this share save the dividend, that is too tempting to turn down for me - so I have built up a comfortable position this past year.
GLA
Does that help.
https://renews.biz/89532/uk-solar-welcomes-cfd-strike-price-rise/
Hi don't know if anyone know the answer to that question, cheers, struggling to see myself
Me again sorry, ive been reading further on how the Electricity Generators levy works. i know it kicks in over £75/mw
however as Next energy always had a very high realised price -- like £150 due to say £80 for what is generated and £75 gov subsidy. do they pay the 45% tax on all of the subsidy or just 45% of the £5 (£80 generation per mw/hr minus 75/hr reference figure)
i hope it is the latter but cant work it out from their accounts ..... Either way still looks mighty profitable, but would the EGL i hope only applies to the price received minus the sub
thanks again
Thanks Legsofman, i'll definitely watch, cheers for the link, much appreciated.
Yes the divs are a major plus point - crazy some of the yields in the uk!
I must admit, the dividends are one of the largest drivers in my interest and returns on the PF
thanks
Dadean, if you haven't read up a lot on this trust the following video 2 months ago from Ross Grier Next Energy may be of value, only 30 mins of your life!...I’m heavily over invested over the whole renewables sector and see this current sentiment as a bargain hunting opportunity.
Retired so the divis matter more to me than pure growth.
Good luck with your investments.
https://m.youtube.com/watch?v=S6K8vg88Rnk
Thanks for your replies, very kind and useful to note... really looks like this one is tied to interests rates, as the pop up and down in the share price in december kind of suggests, if we get bond prices increasing, i would not be surprised if this increased by 10-20% the way you hear the media and central banks talk youd think interest rates are never coming down, but i just don't think thats possible...... i'm going to give very good thought to increasing my position in this greatly. i see in tehir presentations that the div is covered that is excellent... as for elec prices going forward, i think that should be a tailwind for them, its higher than before indefinately albeit lower than a year ago... thanks again gla