Bluefield Solar stock edges up after Q1 NAV report

Investing.com -- Bluefield Solar Income Fund Limited (LON:BSIF) shares saw a marginal increase of +0.2% on Thursday following the announcement of its first quarter Net Asset Value (NAV) per share, which experienced a 2.4% quarterly decline.

The NAV for March was reported at 123.0p per share, down from 126.0p per share as of December 31st.

The slight dip in Bluefield Solar’s NAV was primarily attributed to the company’s quarterly dividend payment, which accounted for a 2.2p per share reduction, and revised assumptions for Renewable Obligation Certificates (REGOs) and power prices, contributing to a 0.51p per share decrease.

Despite these factors, the company’s stock remained relatively stable in trading.

In the first quarter, Bluefield Solar noted a 2.4% decline in NAV, with specific movements including a decrease in power price assumptions by 0.27p per share, and a drop in REGO price assumptions by 0.24p per share.

Although the company paid out a dividend of 2.2p per share, this was not fully compensated by the cash flows from its portfolio, which were affected by seasonally lower solar irradiation during the winter months.

The company’s overall generation remained on target, with total portfolio generation coming in at 0.3% above budget.

This was bolstered by strong solar generation in March, which was 26% higher than budgeted, although this was partially offset by weaker generation in January and February and below-budget wind speeds, which were down 20% from projections.

Bluefield Solar’s current gearing is approximately 44%, with outstanding debt totaling £584.8 million. This gearing level is at the upper end of the company’s preferred range of 35-45%.

Nevertheless, Bluefield Solar has reaffirmed its guidance for dividend cover, indicating that it expects the FY25 dividend (ending in June) to be covered by earnings post debt amortization.

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