18th Feb 2026 13:22
(Alliance News) - NextEnergy Solar Fund Ltd on Wednesday said its net asset value per share fell in the most recent quarter due to lower energy price forecasts, but it maintained its dividend and confirmed its full-year payout guidance.
The Guernsey-based solar energy and energy storage company reported a NAV per share of 84.9 pence at the end of its third quarter on December 31, down 13% from 97.4 pence a year earlier. Compared to September 30, it was 4.4% lower.
The company, which owns about 100 assets and a total of 939 megawatts of installed capacity, blamed the fall on a reduction in power price forecasts from third-party consultants, and a UK solar irradiation 13% below budget, narrowing to 9.3% below target once accounting for distribution outages.
Natural gas futures prices, which set the energy price as a whole due to being the most expensive power source in the marginal pricing system since the phasing out of coal in the UK, fell sharply as Britain experienced lasting unusually mild weather.
UK gas futures fell from an average of around 80 pence per 100,000 British thermal units by the third week of November to trade around the 70 pence mark until the second week of January.
As such, NextEnergy announced earlier this month that it retained both the 2.11 pence dividend for the third quarter, and the full-year target guidance at 8.43 pence per share. The dividend cover is forecast to end up between 1.1 and 1.3 post-amortisation at the end of the financial year.
The company also said it will pursue an immediate switch from the retail price index to the consumer price index for some of its indexations, due to regulatory changes introduced by the UK government on renewable obligations certificates and feed-in tariffs, which will impact the NAV per share by 2 pence from April, with the beginning of the new financial year.
NextEnergy Solar shares were up 0.1% to 50.57 pence each on Wednesday afternoon in London.
"NESF's portfolio continues to demonstrate its underlying resilience during what has traditionally been a seasonally softer period for solar generation. Despite lower winter irradiation and the impact of revised power price forecasts on our NAV, the company remains on track to deliver its full year dividend target of 8.43p per ordinary share," said Chair Tony Quinlan.
"Looking ahead, the board remains focused on ensuring NESF continues to deliver long‑term value for shareholders. Our strategic review is progressing well, and we look forward to sharing a comprehensive update with investors in March."
By Martin Miraglia, Alliance News reporter
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