Foresight Solar reported an unaudited net asset value (NAV) of £657 million as of June 30, 2024, a slight decrease from £665 million at the end of March 2024.
The company's NAV benefitted from upward trends in near and long-term power price forecasts for the UK and Spain during the second quarter. Additionally, UK electricity production saw recovery after a notably wet first quarter, although irradiation was 2.7% below budget and generation was 4.3% lower than forecast in the first half of the year.
In a trading update accompanying the second-quarter NAV results, Foresight Solar indicated that improved weather and good availability from April to June in the UK helped mitigate the impact of the wettest first quarter on record. Nevertheless, these better conditions were insufficient to fully offset the negative effects of the early year's rainfall.
Cumulative irradiation for the six months ending in June was 2.7% below budget, with production 4.3% lower than expected in the UK due to unplanned network outages and a few inverter issues. Spain and Australia also faced adverse weather and network outages.
Globally, production for the portfolio was 7.1% below budget for the first half of the year, showing significant improvement from the first quarter, when it was 15.6% behind budget.
Despite the below-budget start to 2024, Foresight Solar's active power price hedging strategy ensured steady cash flow from operations, with cash distributions only modestly below budget. The investment manager continued to secure forward-fixed electricity sales at favorable rates, ensuring medium-term revenue visibility.
The contracted revenue proportion for the global portfolio stands at 89% for 2024, 83% for 2025, and 63% for 2026.
