Diversified portfolio assists DORE's NAV expand despite falling UK power rates
- Strong power prices in Europe helped offset falling UK power costs to enable Downing Renewables & Infrastructure Trust plc's (DORE) Net Asset Value (NAV) to expand 1.3% in the first quarter of 2021.
The company's NAV rose to ₤ 121.6 million, or 99.2 cent per share, up from ₤ 119.9 million or 97.9 p per share since December 2020. A little over half of this was due to a rise in the long-lasting power price forecasts in Sweden, where DORE purchased a hydro asset following increasing ₤ 122.5 million through IPO on the London Stock Exchange in December.
Complying with the IPO, the business likewise acquired a c. 96MW running UK solar asset in March. UK solar generation as well as power costs remained in line with its expectations it claimed, with a decrease in both long-term power rate forecasts in Q1 and also an enter corporation tax obligation factored right into the acquisition and so shown in the 31 March NAV.
" DORE has actually spent 83% of the funds increased at IPO ahead of timetable and has an attractive pipeline of near-and-medium term opportunities," stated Tom Williams, companion as well as head of energy and also infrastructure at Downing LLP.
" This set of outcomes plainly shows the benefits of DORE's strategy of investing in various modern technologies in various areas offering power right into various electrical power markets."
Dropping long-term power rates in the UK in addition to company tax rising to 25% for all services with earnings over ₤ 250,000 have actually influenced the NAV of a variety of renewable resource companies over Q1. For instance, Insight Solar Fund indicated these two aspects as the greatest chauffeurs of its NAV dropping 2.3 dime per share in Q1.
