Half Year 2024 Foresight Solar Fund Ltd Earnings Call Transcript
Key Points
- Foresight Solar Fund Ltd (LSE:FSFL) has increased its buyback program by GBP10 million, bringing it up to GBP50 million, which is the largest in the sector.
- The company is commencing the divestment process of its entire Australian portfolio, which is expected to pay down a significant chunk of the RCF variable rate debt.
- Despite poor solar irradiance in the first half of the year, the UK portfolio was only 4.3% below budget, demonstrating the resilience of solar generation.
- The company has a strong contracted revenue position, with over 80% of revenues for 2024 and 2025 being fixed or inflation-linked.
- Foresight Solar Fund Ltd (LSE:FSFL) is focusing on future growth through investment in its proprietary development pipeline, targeting a sustainable development pipeline of between two and three gigawatts.
- Revenue for the first half of the year was 6.5% below budget at GBP74.5 million due to lower solar irradiance.
- Distributions from underlying assets were GBP1.5 million behind budget, impacting cash flow for dividend payments.
- Dividend cover for FY24 has moderated slightly to 1.4 times, down from previous levels due to lower generation.
- The Australian portfolio has faced high instances of economic curtailment and grid outages, impacting performance.
- The company is exposed to market risks and uncertainties, particularly in the Australian market, which has seen higher curtailment rates than initially assumed.
Good day, ladies and gentlemen, and welcome to Foresight Solar's interim results presentation.
(Operator Instructions)
I'd like to remind all participants that this call is being recorded. Questions will follow after the presentation.
I will now hand over to Ross Driver to start the presentation.
Good morning, and thank you for the introduction. So I'll start -- Financial Director at Foresight Group and Fund Manager for Foresight Solar Fund, joined today by Toby Virno, Associate Director and out of the fund team in infra team; David Goodwin, who's our Finance Director to the fund; and Matheus Fierro, who's our IR Lead here in the room.
So just pushing forward, we'll go through into the summary of the first half of the year here and appreciating that there are a number of things that have already been released and the new update. So we'll focus on a few of those and add a bit more context around this in the case of the interim results.
So I
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