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NextEnergy Solar Fund Ltd reported on Monday a strong annual performance, with its net asset value per share and revenue rising. The London-based renewable energy investment company said at March 31 that its NAV per share was 114.3 pence, up 0.7% year-on-year from 113.5p. NextEnergy posted a total return in the year ended March 31 of 8.6%, down from 11% the prior year. The company said that the combination of interest rate increases and the uncertainty of the UK’s energy policy and other macroeconomic factors caused the share price to trade at a discount to the NAV for a sustained period, which was an attractive entry point for investors. Portfolio revenue increased 24% to £141.2 million, from £114.2m the prior year. Earnings before interest, tax, depreciation and amortization also increased 24% to £111.3 million, from £89.8 million. The company’s expansion into energy storage resulted in construction work starting at a standalone 50 megawatt battery storage project in Fife, Scotland, which will be energised in summer 2023. Chief Executive Officer Michael Bonte-Friedheim: ‘The last twelve months has seen rising inflationary pressure, economic uncertainty, and increased interest rates. NextEnergy Solar Fund was well positioned to mitigate the risks and capture elevated power prices during this period, whilst providing vital low-cost of production power generation to the UK.’ The company declared a total dividend of 7.52 pence per share, up 5.0% from 7.16p the prior year. NextEnergy Solar Fund said its target dividend for its next financial year was 8.35p, an 11% rise ‘The market environment continues to be favourable for the company. Undoubtedly, macroeconomic and political events have impacted and will continue to impact the renewable energy sector in which the company operates,’ the company said. Shares in NextEnergy Solar Fund were up 2.0% at 102.20 pence in London on Monday morning. Copyright 2023 Alliance News Ltd. All Rights Reserved.
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