Foresight Solar Fund Assets Decrease As UK Power Prices Fall

(Alliance News) - Foresight Solar Fund Ltd on Thursday said its net assets declined over the ...

Alliance News 22 August, 2019 | 11:32AM
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(Alliance News) - Foresight Solar Fund Ltd on Thursday said its net assets declined over the first half following a drop in power prices in the UK.

At June 30, the ground-based solar photovoltaic asset investor's NAV per share stood at 109.6 pence, 1.4% lower compared to 111.2p seen at the end of 2018. Compared to the same point the year before, Foresight Solar's NAV per share is 4.2% higher from 105.2p.

The fund's net assets slipped 1.4% over the six month period to GBP601.5 million from GBP610.3 million. Over the year, net assets jumped 27% from GBP473.1 million.

The first half drop was driven by a downward revision of UK power price forecasts but partially offset by a 0.25% reduction in the discount rate applied to the UK portfolio and improved financing terms, the fund said.

Foresight Solar's portfolio saw "continued solid operational performance", generating over 400 gigawatt hours of clean energy, 2.9% ahead of best case.

"As expected, the first half of 2019 has been a successful period of portfolio consolidation and performance optimisation for the company. I am particularly pleased with the work of the Asset Management team in delivering substantial improvements to the operational performance of the portfolio, with production continuing to be above budget," said Chair Alex Ohlsson.

Ohlsson added: "We remain confident that, with the positive operational performance of our assets, the delivery of value enhancing initiatives and the successful refinancing of 28 UK assets post-period, Foresight Solar continues to be well-positioned to deliver further growth in the second half of the year."

The fund declared an interim dividend of 3.38p, saying it is on track to deliver its 6.76p payout target for the full year.

Shares in Foresight Solar were 0.8% lower in London on Thursday at 122.00 pence each.

By Paul McGowan;

Copyright 2019 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Foresight Solar Ord 115.45 GBX -0.90 -

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