5 July 2024
US Solar
Fund PLC
("USF", or the
"Company)
First quarter update
US Solar Fund plc (LON: USF (USD)/USFP (GBP)), the
renewable energy fund investing in utility-scale power plants
across North America, is pleased to release its first quarter
update for the period ended 31 March 2024.
Highlights for the quarter to 31
March 2024:
NAV
update:
o USF's unaudited NAV
as of 31 March 2024 is $255.9 million ($0.77 per share) which
represents a reduction of approximately 0.9% from the audited NAV
as of 31 December 2023.
o The movement in NAV
is due to the roll-forward of 31 December 2023 project valuation
models by one calendar quarter to 31 March 2024; and adjustments to
reflect actual cash balances and working capital positions as of 31
March 2024.
Dividend
update:
o On 22 May 2024, the
Company announced its Q1 2024 dividend of 0.56 cents per ordinary
share further to the announcement on24 April 2024 and in line with
its interim annual dividend target of 2.25 cents per ordinary
share.
o The ex-dividend date
was 13 June, the record date was 14 June and the payment date will
be 5 July 2024.
Portfolio
performance:
o Portfolio performance
during the period was substantially impacted by below forecast
solar irradiance. Overall generation was 130.6GWh, 11.6% below
forecast with 8.4% attributable to unfavorable weather, however, it
is noted that this is not atypical for the first quarter of the
year which contributes relatively lower levels of expected annual
production.
o The most significant
weather variance was experienced at Milford due to higher than
forecast cloud cover impacting the project site.
o 3.2% of
underperformance was attributable to technical and non-weather
factors, representing an improvement over corresponding levels
achieved in 2023. This was due to the continued pro-active approach
taken to asset management and addressing shortcomings in the
responsiveness and effectiveness of the O&M subcontractors.
Updates post period-end
Additional
information:
o The
Company has provided a table of the figures that support the graphs
and charts included in the Annual Report on the Company's website
(under Key Documents and Disclosure). The figures provided are
indicative only, do not represent or purport to represent a profit
forecast. They are provided solely with a view of enabling analysis
of the Company.
Tender
offer:
o The Company announced
a tender offer in a circular published on 3 May 2024 (the
"Circular"), to return to shareholders up to $19 million, less the
costs of the tender offer. As set out in the Circular, the
maximum number of shares to be purchased by the Company was
24,358,974 ordinary shares at a tender price of $0.764 per ordinary
share (equivalent to the 31 December 2023 NAV of $0.78 per share,
less 2% for the costs of administering the tender offer).
The Company announced the results of the tender offer
on 11 June 2023. The maximum number of shares to be purchased
by the Company were validly tendered. Settlement of the
tender offer consideration was finalised by 20 June 2024.
Reduction of
RCF:
o The Company has a
revolving credit facility (RCF) which is currently undrawn. The
RCF's primary purposes are to provide working capital flexibility
and reserve operational liquidity as may be needed from time
to time.
o Given the Company's
focus on efficient capital management and that it is not looking to
make further investments, the Board determined it was prudent to
reduce the RCF from its previous size of $40 million to $20
million. This reduction in RCF size became effective on 13 June
2024. The updated facility size will reduce costs to the Company
whilst maintaining a smaller facility to service the Company's
working capital needs.
For
further information, please contact:
|
US
Solar Fund
Meredith
Frost (Amber)
|
+44 20 7939 0550
|
|
Cavendish Capital Markets Limited
Tunga Chigovanyika
James King
Will Talkington
|
+44 20 7397 8900
|
|
KL
Communications
Charles Gorman
Charlotte Francis
Patrick Lodge
|
+44 20 3382 6644
|
About US Solar Fund plc
US Solar Fund plc, established in
2019, listed on the premium segment of the London Stock
Exchange in April 2019. The Company's investment
objective is to provide investors with attractive and sustainable
dividends with an element of capital growth by owning and operating
solar power assets in North America and
other OECD countries in the Americas.
The solar power assets that the
Company acquires or constructs are expected to have an asset life
of at least 30 years and generate stable and uncorrelated cashflows
by selling electricity to creditworthy offtakers under long-term
power purchase agreements (or PPAs). The Company's portfolio
currently consists of 41 operational solar projects with a total
capacity of 443MWDC, all located in the United
States.
Further information on the Company
can be found on its website at http://www.ussolarfund.co.uk.