28th Jun 2016 13:47
LONDON (Alliance News) - NextEnergy Solar Fund Ltd on Tuesday said its net asset value per share fell in its financial year due to declining power prices and the removal of levy exemption certificates during the year, but said it expected a limited impact on the renewable energy sector from the vote for Brexit.
The fund, which invests in operational solar power plants in the UK, said its net asset value per share stood at 98.50 pence at the end of its financial year on March 31, down from 103.30p a year earlier, which it said reflected the decline of the market price of electricity as well as the removal of LEC's during the July 2015 summer budget, which together brought net asset value per share down by 14.60p.
The levies were previously offered to renewable power companies and provided an additional source of income on top of electricity generation revenue.
The company posted investment income of GBP24.0 million for the year, though this was offset by a negative change in the fair value of its financial assets of GBP18.5 million, driving total net income to GBP5.5 million.
No revenue had previously been generated before March 31, 2015, but the company posted a GBP10.6 million gain in the fair value of its financial assets, meaning it made a total net income of GBP10.6 million.
As such, operating profit came in at GBP1.9 million compared to the GBP8.3 million operating profit posted a year earlier, though the company noted that it was pleased with its operational performance, with its energy generation coming in at 225 gigawatt hours, around 4.1% above its budget.
NextEnergy posted a total dividend for the full year of 6.25p per share, in line with its target and up from the 5.25p per share offered a year earlier, and said it was targeting a dividend of 6.31p per share for its next financial year, to end March 31, 2017.
The company added that, while the impact of Brexit on NextEnergy and on the renewable energy sector is at this point unclear, "we believe it will have limited, if any, impact on the UK's climate change policies or the regulation of the sector" and said it will monitor any Brexit effects on power prices, sector regulation and growth opportunities carefully.
"We are now the largest listed renewable energy fund on the London Stock Exchange by installed solar capacity. This is a testament to our proven ability to identify a high quality pipeline, raise capital, make acquisitions at attractive valuations and deliver outperformance through our operational expertise. This combination was critical in mitigating headwinds from declining power prices and removal of LECs during the year," said Chairman Kevin Lyon.
Shares in NextEnergy were up 0.8% at 95.00p on Tuesday.
By Hannah Boland; [email protected]; @Hannaheboland
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