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(Alliance News) - NextEnergy Solar Fund Ltd on Monday said it was optimistic about the performance of its portfolio in the context of residual headwinds from a volatile domestic energy market.
NextEnergy is a Guernsey-based investor and asset manager in the solar sector.
At September 30, the firm's net asset value per share was 122.9 pence, up from 113.5p on March 31. In the six months ended September 30, NextEnergy's net asset value total return was positive 12%, up from positive 3.8% year-on-year.
Pretax profit increased by 69% to GBP77.1 million from GBP45.5 million a year prior, while earnings per share rose to 13.1p from 7.7p.
The firm recorded income on investments of GBP37.0 million, up from GBP19.0 million the previous year.
It noted that the market environment continues to be favourable for potentially increase energy storage investments within the portfolio, from the division's current position as a complementary hedge to its existing solar portfolio.
During the period, NextEnergy advanced its position in the energy storage sector by increasing its strategic joint venture partnership with energy storage specialist EelPower Ltd to GBP300 million in total, via a 75% stake in a new GBP200 million JV partnership vehicle.
NextEnergy also secured a GBP60 million increase to its existing GBP75 million revolving credit facility with AIB Group PLC and NatWest Group PLC.
"The company is strategically positioned for its next wave of growth and diversification, with energy storage set to play a very important role within the portfolio. NESF continues to offer shareholders, both current and prospective, an attractive investment opportunity," said Chair Kevin Lyon.
"Recent equity market conditions, driven by macroeconomic and political events, have created an attractive share price entry point, trading at a discount to the NAV per share."
NextEnergy declared a second interim dividend of 1.88p per share for the quarter ended September 30, raised from 1.79p a year prior. Total dividends of 3.76p were paid for the six months ended September 30, up from 3.58p.
The firm set a target dividend of 7.52p per share for the financial year 2023 ending March 31, up 5.0% year-on-year from 7.16p.
NextEnergy shares were trading 3.4% higher at 114.82p each in London on Monday morning.
By Holly Beveridge; hollybeveridge@alliancenews.com
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