20th Nov 2018 13:12
LONDON (Alliance News) - Infrastructure investor NextEnergy Solar Fund Ltd said Tuesday its asset value per share remained flat as it raised funds for fresh acquisitions, whilst energy generation grew ahead of expectations.
For the six months ended September, net asset value per share remained unchanged on six months earlier at 105.1 pence. This was after net asset value rose to GBP610 million from GBP605 million six months earlier, but gearing widened to 37% from 31%.
"Over the course of the last six months, we have fully deployed the capital raised in the previous financial year in the acquisition of operating solar assets", NextEnergy Solar Chairman Kevin Lyon said.
NextEnergy Solar is still targeting a full-year dividend per share of 6.65 pence, up from 6.42p the year prior. The firm has already paid the first of its quarterly dividends of 1.665 pence in September.
"The first half of this financial year was characterised by a notable overperformance of the company's portfolio, driven by high levels of solar irradiation during the summer," Lyons added. "At the same time, we continued to focus on the portfolio's core technical and operating performance and reduction in operating expenditure, and selectively entered into new power purchase agreements and hedges to take advantage of rising short-term power prices."
Electricity generation during the period hit 480 gigawatts per hour, over 7.9% ahead of the budget amounted.
"Following the end of the period, we implemented an innovative financing transaction, issuing preference shares, which will improve the company's cashflows available for re-investment and distribution", Lyons continued.
In early November, NextEnergy Solar raised GBP100 million through the issue of its first tranche of preference shares. A further GBP100 million is expected to be raised through the issue of a second tranche by the end of the financial year.
Shares in NextEnergy Solar were trading flat at 109.75 pence on Tuesday.
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