(Alliance News) - BlackRock Energy & Resources Income Trust PLC on Wednesday reported a fall in assets for its financial year ended November 30, 2019.
The investment trust said its net asset value per share at November 30 stood at 75.28 pence each compared to 75.87p a year ago, reflecting a 0.8% decrease. Net asset value total return with dividends reinvested grew by 4.4%.
Net assets decreased 2.5% in the same period to GBP86 million from GBP88 million.
BlackRock Energy declared a fourth interim dividend of 1.0p, taking its total for the year to 3.97p, compared to 4.37p for financial 2018.
The trust said its performance could be attributed to a volatile market with energy companies "lagging badly" due to greater concern among investors about the impact of carbon based fuels on the environment. The MSCI World Energy Index fell by 5.7% over the year.
Looking ahead, the company noted a decline in demand for carbon-based energy supplies with growing momentum in the demand for alternative and renewable energy sources.
"The board is increasingly mindful of the growing use of renewable sources of power in electricity generation and the rapid development of energy technology. If the move away from carbon based fuels presents challenges for some entities in the company's investment universe, it creates opportunities elsewhere, said Blackrock Chair Ed Warner.
"BlackRock has a dedicated Sustainable Energy team, who form a key part of the wider natural resources team and are well placed to identify investment opportunities in this space," he added.
The stock closed 2.5% higher at 66.84p each on Wednesday in London.
By Ife Taiwo; ifetaiwo@alliancenews.com
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Blackrock Engy (BERI)