NextEnergy Solar Fund reports 3.6% NAV decline on lower power prices

Published 21/08/2025, 09:22

Investing.com -- NextEnergy Solar Fund Limited (LON:NESF) on Thursday reported a net asset value (NAV) of 91.7p per share as of June 30, representing a 3.6% decline from the previous quarter.

The primary factor driving the NAV reduction was lower power price assumptions, which decreased the value by 2.2p per share. Battery energy storage system (BESS) revenue assumptions were also reduced by 0.9p per share.

These negative impacts were partially offset by revised inflation assumptions, which added 0.6p per share, and strong generation performance that was 7.6% above budget, contributing an additional 0.5p per share.

The fund’s total gearing, including preference shares, stands at 48.5%, slightly up from 48.4% in March 2025. The company’s £205 million revolving credit facility is currently drawn to approximately £152.9 million, compared to £144.9 million in March.

NextEnergy Solar Fund maintained its dividend guidance of 8.43p per share for fiscal year 2026, with expected coverage of 1.1-1.3 times. The company has already secured approximately 40% of its annual generation in the first quarter of FY26 due to exceptionally strong solar irradiation, which was 18.9% above budget.

The fund continues to progress with its disposal program, with 100MW of solar assets currently undergoing a third-party sales process. The share buyback program was paused during the quarter and remains 58% complete at £11.5 million.

For fiscal year 2026, approximately 91% of the fund’s revenue is already contracted, with about 70% contracted for FY27.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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