Last checked at 28 Oct 2019 16:47
BlackRock Energy and Resources Income Trust Plc - Portfolio UpdateBlackRock Energy and Resources Income Trust Plc - Portfolio Update
PR Newswire
London, October 28
| BLACKROCK ENERGY AND RESOURCES INCOME TRUST plc (LEI:54930040ALEAVPMMDC31) | ||||||||||||||||||||
| All information is at 30 September 2019 and unaudited. | ||||||||||||||||||||
| Performance at month end with net income reinvested | ||||||||||||||||||||
| One | Three | Six | One | Three | Five | |||||||||||||||
| Month | Months | Months | Year | Years | Years | |||||||||||||||
| Net asset value | 0.6% | -4.2% | -0.2% | -3.7% | 19.5% | 4.1% | ||||||||||||||
| Share price | 5.7% | -1.9% | -3.7% | -5.7% | 10.3% | -6.4% | ||||||||||||||
| Sources: Datastream, BlackRock | ||||||||||||||||||||
| At month end | ||||||||||||||||||||
| Net asset value – capital only: | 77.90p | |||||||||||||||||||
| Net asset value cum income*: | 78.54p | |||||||||||||||||||
| Share price: | 71.40p | |||||||||||||||||||
| Discount to NAV (cum income): | 9.1% | |||||||||||||||||||
| Net yield: | 5.6% | |||||||||||||||||||
| Gearing - cum income: | 7.7% | |||||||||||||||||||
| Total assets: | £95.5m | |||||||||||||||||||
| Ordinary shares in issue: | 114,531,198 | |||||||||||||||||||
| Gearing range (as a % of net assets): | 0-20% | |||||||||||||||||||
| Ongoing charges**: | 1.4% | |||||||||||||||||||
| * Includes net revenue of 0.64p. ** Calculated as a percentage of average net assets and using expenses, excluding any interest costs and excluding taxation for the year ended 30 November 2018. | ||||||||||||||||||||
| Sector Analysis | % Total Assets^ | Country Analysis | % Total Assets^ | |||||||||||||||||
| Integrated Oil | 33.3 | Global | 66.5 | |||||||||||||||||
| Diversified Mining | 19.5 | Canada | 11.5 | |||||||||||||||||
| Gold | 14.0 | USA | 11.4 | |||||||||||||||||
| Copper | 10.6 | Australia | 5.4 | |||||||||||||||||
| Exploration & Production | 8.3 | Latin America | 4.2 | |||||||||||||||||
| Industrial Minerals | 5.0 | Asia | 2.0 | |||||||||||||||||
| Silver | 3.4 | Africa | 0.5 | |||||||||||||||||
| Distribution | 2.5 | Net Current Liabilities^ | -1.5 | |||||||||||||||||
| Diamonds | 2.3 | ----- | ||||||||||||||||||
| Electricity | 2.0 | 100.0 | ||||||||||||||||||
| Steel | 0.6 | ===== | ||||||||||||||||||
| Net Current Liabilities^ | -1.5 | |||||||||||||||||||
| ----- 100.0 ===== | ||||||||||||||||||||
| ^ Total Liabilities for the purposes of these calculations exclude bank overdrafts, and the net current asset figure shown in the tables above therefore exclude bank overdrafts equivalent to 7.3% of the Company’s net asset value. | ||||||||||||||||||||
| Ten Largest Investments | ||||||||||||||||||||
| Company | ||||||||||||||||||||
| Region of Risk | % Total Assets | |||||||||||||||||||
| First Quantum Minerals | Global | 7.7 | ||||||||||||||||||
| BHP | Global | 7.2 | ||||||||||||||||||
| Royal Dutch Shell ‘B’ | Global | 6.7 | ||||||||||||||||||
| Barrick Gold | Global | 5.6 | ||||||||||||||||||
| BP Group | Global | 5.4 | ||||||||||||||||||
| Chevron | Global | 5.1 | ||||||||||||||||||
| Exxon Mobil | Global | 4.7 | ||||||||||||||||||
| Total | Global | 3.9 | ||||||||||||||||||
| Rio Tinto | Global | 3.6 | ||||||||||||||||||
| Vale-ADS | Latin America | 2.9 | ||||||||||||||||||
| Commenting on the markets, Olivia Markham and Tom Holl, representing the Investment Manager noted: | ||||||||||||||||||||
| The Company’s NAV increased by 0.6% during the month of September (in Sterling terms). September was characterised by a raft of weak economic data. In the UK, the IHS Markit Purchasing Managers’ Index (PMI) for services fell to a 6 month low of 49.5, signalling a contraction in the sector. Elsewhere, China’s manufacturing sector shrank for a fifth consecutive month, with the PMI released by the National Bureau of Statistics coming in at 49.8. Within the US, whilst there was a modest improvement in perceived relations between the US and China, there is an ongoing enquiry regarding the impeachment of President Trump. In other news, the Federal Reserve (Fed) cut US interest rates by a further 0.25%. Despite this weak economic backdrop, equity markets remained resilient, with the MSCI World Index rising by 2.1%. Within the energy sector, there was an attack on key Saudi Oil infrastructure during the month, which impacted the world’s largest oil processing facility, Abqaiq. A reported 5.7 million barrels per day of production (~6% of the world’s supply) was affected, which marked the largest oil market outage since the first Gulf War in 1990. There was an initial spike in the oil price, however it was later announced that the tenure of the outage would be shorter than originally anticipated, which resulted in the oil price returning some of its initial gains. However, this event has elevated geopolitical risks in the region and has highlighted the vulnerability of Saudi’s oil infrastructure. Any additional attacks could lead to a further rise in the oil price. Against this backdrop, the oil price was volatile but ultimately weakened over the month, with Brent and WTI (West Texas Intermediate) returning -0.2% and -1.9%, to end the period at prices of $60/bbl and $54/bbl respectively. European Natural Gas prices also plummeted to a 10-year low, due to rising gas imports from Russia and the US, which has resulted in an oversupplied market. In the mined commodity space, the precious metals gave back some of their strong year-to-date gains, with gold and silver prices falling by 3.6% and 7.2% respectively in September. Whilst the US interest rate cut was positive for gold, it had been expected and language from the US Fed was perceived as more hawkish than expected. Elsewhere the base metals were mixed, with the copper price rising by 0.7% but aluminium and nickel prices falling by 1.3% and 4.4% respectively. Meanwhile, bulk commodities were strong, with the iron ore (62% fe) price up by 9.3% on stronger Chinese imports. All data points in US Dollar terms unless otherwise specified. Commodity price moves sourced from Thomson Reuters Datastream. 28 October 2019 | ||||||||||||||||||||
| ENDS | ||||||||||||||||||||
| Latest information is available by typing www.blackrock.co.uk/brci on the internet, "BLRKINDEX" on Reuters, "BLRK" on Bloomberg or "8800" on Topic 3 (ICV terminal). Neither the contents of the Manager’s website nor the contents of any website accessible from hyperlinks on the Manager’s website (or any other website) is incorporated into, or forms part of, this announcement. | ||||||||||||||||||||