Foresight Solar, a leading solar infrastructure investment company, has disclosed unaudited figures indicating a decrease in net asset value (NAV) as of December 31, 2023. The reported NAV stood at £698 million, down from £707 million recorded as of September 30, 2023.
Key developments during the quarter included the sale of the Lorca portfolio stake, which fetched a notable 21% premium compared to its holding value. This transaction helped offset negative impacts stemming from revised power price forecasts and actual inflation.
Proceeds generated from the Lorca sale, coupled with available free cash, were utilized to reduce debt, resulting in the lowering of Foresight Solar's revolving credit facility balance to the previously targeted £75 million.
Throughout the period, near-term power price forecasts exhibited a downward trend across most markets, while a slight uptick was observed in medium to long-term estimates across all geographic regions. Despite these fluctuations, the company emphasized its “well-hedged near-term position” and reduced Electricity Generator Levy payments, which mitigated the overall impact.
In the fourth quarter, Foresight Solar recalibrated its UK solar capture price assumptions based on actual observed portfolio performance, resulting in a marginally more conservative forecast for potential discounts. These adjustments contributed to a 1.1 percentage point downside to NAV.
The company's strategic initiatives reflect its proactive approach in navigating market dynamics, ensuring resilience in its portfolio performance amidst changing economic conditions.
