Foresight Solar’s net asset value dips in ‘uniquely challenging’ 2020

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One of Foresight Solar’s assets in Spain. Image: Foresight Solar.

Green investment group Foresight Solar’s net asset value took a hit last year, driven by declining power price forecasts in some of its key markets.

Foresight Solar’s net asset value (NAV) reached £582.2 million (US$808.53 million) in the 12 months to 31 December 2020, down from £628 million in 2019. The company said in its annual results announcement that this was largely driven by a fall in long-term UK and Australian power price forecasts  Share value also fell and stood at around £0.96 at the end of 2020, down £0.08 on the previous year’s NAV per share.

Despite power price declines, the company reported “strong operational performance” that was 8.4% above base expectations in its UK portfolio, helped by asset availability and high irradiation. Foresight Group, Foresight Solar’s parent company, recently announced the formation of a joint venture to develop five solar PV plants in England and Wales, with a total generating capacity of close to 700MW.

Foresight Solar currently has 58 solar assets in its portfolio located in the UK, Australia and Spain, with a combined capacity of 994MW, and generated 969,564MWh of electricity last year, it said in a statement. The company made its first foray into the subsidy-free solar market last year when it acquired a 26.1MW project in Spain last September. It then bought another three assets in Andalucia at the start of 2021, with a capacity totalling 98.5MW. Chairman Alex Ohlsson said the array “should deliver stable cash flows at attractive risk-adjusted returns”, and marks an “important step” towards its planned global expansion.

Ohlson said the company will “continue to monitor and evaluate targeted growth opportunities,” and this year it would focus on delivering various optimisation initiatives and a “strong operational performance”.

“In a uniquely challenging environment, 2020 saw the company deliver a strong operational performance in the UK, make good progress on its Australian solar portfolio, reach a significant milestone with its first investments in continental Europe and in unsubsidised solar and again, meet its dividend target for the year,” he said.

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