NEXTENERGY SOLAR FUND LIMITED Generating a more sustainable future
Factsheet
for the year ended 31 March 2023
COMPANY OVERVIEW
NextEnergy Solar Fund Limited is a specialist renewable energy investment company, listed on the premium segment of the London Stock Exchange. As at 31 March 2023 the Company has completed and announced 99 separate acquisitions of operational solar projects (and a private equity investment) with a total capacity installed1 of 865MW and total invested capital of approximately £1.13b.
1 Excludes share in private equity vehicle (NextPower III ESG)
Performance Highlights
Financial Highlights1
NAV per ordinary share as at 31 March 2023
114.3p
(31 March 2022: 113.5p)
Dividends per ordinary share for the year ended 31 March 2023
Ordinary shareholders' | Financial debt gearing |
NAV as at 31 March 2023 | as at 31 March 20232 |
£674.4m | 28% |
(31 March 2022: £668.5m) | (31 March 2022: 25%) |
Cash dividend cover (pre-scrip | Total gearing as at |
dividends) for the year ended | 31 March 2023 3 |
31 March 2023 |
7.52p | 1.4x | 45% |
(31 March 2022: 7.16p) | (31 March 2022: 1.2x) | (31 March 2022: 42%) |
NAV total return per ordinary share for the year ended
31 March 2023
Ordinary shareholder total return for | Ordinary shareholder |
the year ended | annualised total return |
31 March 2023 | since IPO |
7.3% | 8.6% | 7.0% |
(31 March 2022: 22%) | (31 March 2022: 11%) | (31 March 2022: 6.7%) |
Operational Highlights | ESG Highlights | |
Total capacity installed as | Total electricity generation for the year | Tonnes of CO e emissions avoided p.a.4 |
at 31 March 20235 | ended 31 March 2023 | 2 |
865MW | 870GWh | 363,000 |
(31 March 2022: 865MW) | (31 March 2022: 773GWh) | (31 March 2022: 328,700) |
Operating solar assets | Generation above budget for | Equivalent UK homes |
as at 31 March 20236 | the year ended 31 March 2023 | powered for one year4 |
99 | 3.8% | 242,000 |
(31 March 2022: 99) | (31 March 2022: 1.8%) | (31 March 2022: 216,300) |
1 Refer to the Alternative Performance Measures on pages 141 - 144 of the NESF Annual Report for 31 March 2023 for calculation basis 2 Financial debt gearing excludes the £200m preference shares on a look through basis
3 Total gearing is the aggregate of financial debt, look through debt and £200m of preference shares. The preference shares are equivalent to non-amortising debt with repayment in shares
- www.greeninvestmentgroup.com/green-impact/green-investment-handbook
- Excluding share in private equity vehicle (NPIII LP). Inclusion of NESF's 6.21% share of NPIII LP on a look through equivalent basis would increase total capacity by 24MW (2022: 19MW) to 889MW (2022: 884MW)
- Excluding the $50m commitment into private equity vehicle (NPIII LP)
INVESTMENT POLICY
NESF's investment objective is to provide ordinary shareholders with attractive risk-adjusted returns, principally in the form of regular dividends, through a diversified portfolio of solar energy infrastructure assets with the addition of complementary technologies, such as energy storage.
The Company is currently advancing a pipeline of UK solar, international solar, battery storage and co-investment opportunities to complement the portfolio and diversify asset-specific and
market risks.
The Company's Investment Adviser continues to consult investors in support of an increase to the Company's investment policy energy storage limit, from 10% of Gross Asset Value, up to 25%.
PORTFOLIO HIGHLIGHTS
The Company advanced its position in the energy storage sector by increasing its strategic joint venture partnership with energy storage specialist EelPower Limited to £300m and secured development rights for Project Lion, a 250MW battery storage project located in the East of England. The Company also stated construction on its first 50MW standalone battery storage project in Fife, Scotland.
Following the year ended 31 March 2023, NESF announced a capital recycling programme and initiated the process for the sale of five UK subsidy-free assets. The Company aims to capture significant value from the divestment of a 236MW portfolio, the proceeds from which will be used to reduce gearing, secure optionality for future growth opportunities and buyback shares.
SHAREHOLDER/NAV RETURN
For the period ended 31 March 2023,
the ordinary shareholder total return was 8.6% and the NAV total return was 7.3%.
As at 31 March 2023, NESF has achieved an ordinary shareholder total return since IPO of 66.9% and a NAV total return since IPO of 76.6%.
The annualised ordinary shareholder total return since IPO was 7.0% and annualised NAV total return since IPO was 8.0%.
Snapshot of Our Diversified Portfolio
as at 31 March 2023
By Subsidy/PPA (RPI linked) 1 | By Installed Capacity 1 | |||
12.1% | 1.2 ROCs | 57.6% | 0-5 MWp | |
3.0% | 1.3 ROCs | 19.2% | 6-10 MWp | |
40.9% | 1.4 ROCs | 23.2% | >10 MWp | |
12.7% | 1.6 ROCs | |||
0.7% | 2.0 ROCs | |||
6.5% | FiTs UK | |||
4.0% | FiTs Italy | |||
0.9% | 1.4NIROCs | |||
7.4% | Subsidy-free | |||
11.7% | Long-term PPA | |||
% of assets by MW capacity | % of assets |
By Revenue Type 1 | By Inverter Manufacturer 1 | |||
50.7% | Brown Power - Fixed PPA | 26.6% | SMA | |
34.5% | ROCs | 20.7% | Huawei | |
11.0% | FiTs (UK & Italy) | 17.0% | Power Electronics | |
3.1% Brown Power - Wholesale | 8.1% | Emerson | ||
0.7% Other | 6.4% | Schneider | ||
5.6% | Gamesa | |||
5.0% | ABB | |||
3.9% | Power-One | |||
6.7% | Other | |||
% of total revenue for the year ended 31 March 2023 | % of assets by MW capacity |
By Solar Module Manufacturer 1 | By Location 1 | |||
20.4% | Hanwha Q Cells | 85.5% UK | ||
19.6% | TRINA | 10.2% Italy | ||
10.8% | Yingli | 0.8% | Spain | |
8.3% | REC | 0.7% | Portugal | |
7.5% | Jinko Solar | 2.7% | Other International (NPIII LP) | |
7.5% | LDK Solar | |||
5.7% | Canadian Solar | |||
4.1% | BYD | |||
3.9% | Renesola |
12.3% Other
% of assets by MW capacity | % of invested capital |
1 Figures are stated to the nearest 0.1% which may lead to rounding differences
Corporate Information
Investment Manager and Adviser
NextEnergy Capital IM Limited and NextEnergy Capital Limited, both members of the NextEnergy Group, act as Investment Manager to the Company and Investment Adviser to the Investment Manager, respectively. The NextEnergy Group is a leading specialist solar and energy storage investment manager and asset manager focused on the renewable energy sector.
Since it was founded, the NextEnergy Group has provided asset management, technical due diligence and other services to over 2,855 solar power and energy storage assets, totalling an installed capacity in excess of 4.3GW. Its asset management clients include solar funds (in addition to the Company), banks, private equity funds and other specialist investors.
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The Company
NextEnergy Solar Fund Limited
Registered Office:
Floor 2
Trafalgar Court
Les Banques
St Peter Port
Guernsey GY1 4LY
Registered no.: 57739
LEI: 213800ZPHCBDDSQH5447
Ordinary Share ISIN: GG00BJ0JVY01
Ordinary Share SEDOL: BJ0JVY0
London Stock Exchange Ticker: NESF
Website: www.nextenergysolarfund. com
Directors
Kevin Lyon, Chairman
Vic Holmes, Senior Independent
Director
Patrick Firth
Josephine Bush
Joanne Peacegood
Helen Mahy (appointed 1 April 2023) (All Non-Executive and Independent)
Investment Manager
NextEnergy Capital IM Limited
PO Box 656
East Wing
Trafalgar Court
St Peter Port
Guernsey
GY1 3PP
Investment Adviser
NextEnergy Capital Limited
75 Grosvenor Street
Mayfair
London W1K 3JS
Asset Manager
WiseEnergy
75 Grosvenor Street
Mayfair
London W1K 3JS
Company Secretary and
Administrator
Ocorian Administration (Guernsey)
Limited
Floor 2
Trafalgar Court
Les Banques
St Peter Port
Guernsey GY1 4LY
Independent Auditor
KPMG Channel Islands Limited
Glategny Court
Glategny Esplanade
St Peter Port
Guernsey GY1 1WR
Registrar
Link Market Services (Guernsey) Limited
Mont Crevelt House
Bulwer Avenue
St Sampson
Guernsey GY2 4LH
Legal Advisers
As to UK Law
Stephenson Harwood LLP
1 Finsbury Square
London EC2M 7SH
As to Guernsey Law
Carey Olsen (Guernsey) LLP
PO Box 98
Carey House
Les Banques
St Peter Port
Guernsey GY1 4BZ
Sponsor and Joint Broker
Cenkos Securities plc
6, 7, 8 Tokenhouse Yard
London EC2R 7AS
Joint Broker
RBC Capital Markets Limited
100 Bishopsgate London EC2N 4AA
Media and Public Relations Adviser
Camarco
107 Cheapside
London EC2V 6DN
The Maitland Consultancy Limited
(appointed June 2023)
3 Pancras Square
London N1C 4AG
Principal Bankers
Barclays Bank plc
6/8 High Street
St Peter Port
Guernsey GY1 3BE
Important Information
This Factsheet was approved for issue in accordance with section 21 of the Financial Services and Markets Act 2000 by NextEnergy Capital Limited, authorised and regulated by the Financial Conduct Authority (FCA). This document is not and should not be construed as an offer to sell or the solicitation of an offer to purchase
or subscribe for any investment. The document is intended for information purposes only and does not constitute investment advice. It is important to remember that past performance is not a guide to future performance. Furthermore, the value of any investment or the income deriving from them may go down as well as up and you may not get back the full amount invested. The target dividends referred to in this document are targets only and not a profit forecast. There can be no assurance that these targets can be met.
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Disclaimer
NextEnergy Solar Fund Ltd. published this content on 19 June 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 June 2023 11:12:05 UTC.
