Last checked at 
17 Aug 2023 07:00
17 August 2023
Bluefield Solar Income Fund Limited
('Bluefield Solar' or the 'Company')
UNAUDITED NET ASSET VALUE AS OF 30 JUNE 2023
Bluefield Solar (LON: BSIF), the UK income fund primarily focused on acquiring and managing solar assets, announces the Company's estimated unaudited net asset value ('NAV') as of 30 June 2023 to be £854.2 million (31 March 2023: £850.2 million), resulting in a NAV of 139.7 pence per Ordinary Share (31 March 2023: 139.1 pence per Ordinary Share).
This represents an increase of approximately 0.4% for the quarter. Key changes include an increase in discount rate being offset by increases in above market power price fixes in the short term, working capital, inflation and the valuations of development and construction projects.
The equity discount rate applied in the valuation has increased to 8.00% (31 March 2023: 7.25%), reflecting a rise in gilt yields, with an impact of -4.9 pence per Ordinary Share.
Positive impacts to the movement this quarter include the level of the power sales prices achieved, with power price movement having an impact of 3.1 pence per Ordinary Share. Whilst short term power prices and corresponding forecasts have decreased, the Company has benefitted from the fact that it has sold power at levels substantially above current market prices via its PPA hedging programme. This has resulted in a substantial increase in working capital of 3.5 pence per Ordinary Share and a corresponding uplift in valuation to reflect the blend between contracted power sales and third party forecasts used in the Company's valuation models.
A rise in inflation assumptions to 7% for 2023 and 3.5% for 2024 (31 March 2023: 5.5% for 2023 and 3% for 2024) has increased the NAV by 2.0 pence per Ordinary Share, and the Company has also benefitted by 2.3 pence per Ordinary Share from its active development pipeline, recognising valuation uplifts from solar and storage development projects that have achieved planning consent and grid offers.
The breakdown of contributing factors is summarised in the table below:
Pence per Ordinary Share | |
Unaudited NAV as at 31 March 2023 | 139.1 |
Power prices | 3.1 |
Discount rate | -4.9 |
Inflation | 2.0 |
Development and construction | 2.3 |
Change in working capital | 3.5 |
Change in debt | -3.1 |
Change in other movements | -2.3 |
Unaudited NAV as at 30 June 2023 | 139.7 |
The unaudited NAV as of 30 June 2023 represents a movement of -0.5% for the year (30 June 2022: £858.4 million, 140.4 pence per Ordinary Share). The audited Net Asset Value will be released by the Company with the annual results.
The Board is pleased to reconfirm its guidance of a full year dividend of not less than 8.40 pence per Ordinary Share for the financial year ended 30 June 2023; this dividend will be covered by earnings and is post debt amortisation. Following the high power price fixes achieved in the year to June 2023, the Company has significant working capital and a substantial dividend cover, estimated to be over 2.0x covered.
Bluefield Solar will announce its Audited Full Year Results for the year ended 30 June 2023 on Thursday, 28 September 2023. A briefing for analysts will be held at 9.30am (BST) on the morning of the results announcement via a remote facility and an audio webcast will be available on the Company's website later that day.
To register for the analyst briefing, please contact Buchanan on BSIF@buchanan.uk.com.
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For further information:
Bluefield Partners LLP (Company Investment Adviser)James Armstrong / Neil Wood / Giovanni Terranova |
Tel: +44 (0) 20 7078 0020 www.bluefieldllp.com |
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Numis Securities Limited (Company Broker)Tod Davis / David Benda / Vicki Paine | Tel: +44 (0) 20 7260 1000 www.numis.com |
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Ocorian (Company Secretary & Administrator)Patrick Ogier | Tel: +44 (0) 1481 742 742 www.ocorian.com |
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Media enquiries:Buchanan (PR Adviser)Henry Harrison-Topham / Henry Wilson
| Tel: +44 (0) 20 7466 5000 www.buchanan.uk.comBSIF@buchanan.uk.com |
For further information:
About Bluefield Solar
Bluefield Solar is a London listed UK income fund primarily focused on acquiring and managing solar assets. Not less than 75% of the Company's gross assets will be invested into UK solar assets. The Company can also invest up to 25% of its gross assets into other technologies, such as wind and storage. The majority of the Company's revenue streams are regulated and non-correlated to short term UK energy market fluctuations. Bluefield Solar owns and operates an 812MWp UK portfolio, comprised of 754MWp of solar and 58MWp of onshore wind.
Further information can be viewed at www.bluefieldsif.com
About Bluefield Partners
Bluefield Partners LLP was established in 2009 and is an investment adviser to companies and funds investing in renewable energy infrastructure. It has a proven record in the selection, acquisition and supervision of large-scale energy assets in the UK and Europe. The team has been involved in over £6.5 billion renewable funds and/or transactions in both the UK and Europe, including over £1 billion in the UK since December 2011.
Bluefield Partners LLP has led the acquisitions of, and currently advises on, over 100 UK based solar PV assets that are agriculturally, commercially or industrially situated. Based in its London office, it is supported by a dedicated and experienced team of investment, legal and portfolio executives. Bluefield Partners LLP was appointed Investment Adviser to Bluefield Solar in June 2013.