(Alliance News) - Bluefield Solar Income Fund Ltd on Tuesday said net asset value fell on a quarterly basis, although it raised its interim dividend and confirmed its guidance for its annual dividend.
The Guernsey-based income fund, which focuses on UK-based renewable energy assets, said NAV per share at March 31 stood at 133.9 pence, down from 136.0p on December 31.
Bluefield Solar said the published power curves from its three leading independent power forecasters all showed lower price forecasts at March 31 for the near term compared to the previously published power curves.
However, it explained that, due to the fact Bluefield Solar has over 92% of power sales hedged for its financial 2024 and 81% for its financial 2025, its earnings are "materially insulated" from the effect of reductions in near term power prices.
As a result, the downside effect on NAV was limited to 0.3p per share. NAV was also hit by operational updates dragging by 0.7p per share and its first interim dividend of 2.2p, while share buyback accretion helped NAV by 0.1p per share, alongside a 1.0p increase in "other movements".
Bluefield Solar increased its second interim dividend to 2.20p per share from 2.10p a year earlier.
It also reaffirmed its guidance of a full year dividend of not less than 8.80p per share for the financial year ending June 30, up from 8.60p a year earlier.
This is expected to be covered by earnings and to be post debt amortisation, the company said.
Shares in Bluefield Solar were up 0.3% to 107.10 pence each in London on Monday after midday.
By Greg Rosenvinge, Alliance News senior reporter
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Bluefield Solar (BSIF)