It has been a busy few months for NextEnergy Solar Fund (NESF) and the listed renewable energy sector. NESF’s share price may have come under pressure from the threat of rising discount rates (as interest rates rise, its NAV falls) and windfall taxes, but the picture on both fronts is clearer, and – as the latest results show – NESF’s NAV is still making positive progress.
The board says that strong earnings cover and NESF’s forward sales of power give it confidence to maintain its policy of at least matching dividend hikes with inflation. If shareholders approve, a push into energy storage offers another potential route to earnings growth.
12 Dec 2022
NextEnergy Solar Fund - Earnings visibility underpins dividend target
Sign up for free to access
Get access to the latest equity research in real-time from 12 commissioned providers.
Get access to the latest equity research in real-time from 12 commissioned providers.
NextEnergy Solar Fund - Earnings visibility underpins dividend target
NextEnergy Solar Fund Ltd (NESF:LON) | 74.4 0 0.0% | Mkt Cap: 439.3m
- Published:
12 Dec 2022 -
Author:
James Carthew | Matthew Read | Richard Williams - Pages:
It has been a busy few months for NextEnergy Solar Fund (NESF) and the listed renewable energy sector. NESF’s share price may have come under pressure from the threat of rising discount rates (as interest rates rise, its NAV falls) and windfall taxes, but the picture on both fronts is clearer, and – as the latest results show – NESF’s NAV is still making positive progress.
The board says that strong earnings cover and NESF’s forward sales of power give it confidence to maintain its policy of at least matching dividend hikes with inflation. If shareholders approve, a push into energy storage offers another potential route to earnings growth.