(Alliance News) - SQN Asset Finance Income Fund Ltd on Friday said coronavirus had limited impact on its performance in March.
The investment company said the unaudited estimated net asset value per share was 69.82 pence as at the end of March, while the unaudited estimated NAV per C share was 97.00 pence.
SQN said the majority of payments due in March were received as expected, with the exception of the payments due on the loans secured by marine vessels with a single counterparty. SQN said it had already been working with this group of companies to improve the loan to value of this investment as weakness in the vessel market preceded the emergence of Covid-19 which has then contributed to further weakness.
In addition, the company said two investments without previous provisions have engaged with its investment managers seeking temporary relief on principal and interest payments due to the company.
One of those is a recycling business which has experienced a severe reduction in activity. SQN said it expects that this business will return to normal operations once restrictions are lifted.
The other investment is in remote operated vehicles which are currently being utilised in the offshore oil industry. SQN explained the dual effect of lower oil prices and Covid-19 has resulted in a temporary decrease in utilisation and a slowdown in payments received by the lessee.
SQN shares were trading 3.8% lower in London on Friday at 22.14 pence each, while C shares were down 4.5% at 46.00p each.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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