Full Year 2024 Foresight Solar Fund Ltd Earnings Call Transcript
Key Points
- Foresight Solar Fund Ltd (LSE:FSFL) demonstrated resilience by delivering an 8p per share target dividend with a 1.4 times cash cover despite experiencing the lowest number of sun hours in the UK on record.
- The company returned GBP67 million to investors in 2024 through buybacks and dividends, emphasizing a focus on capital returns.
- A revised fee structure was introduced, aligning the manager's interests with investors and aiming to reduce the fund's discount.
- Foresight Solar Fund Ltd (LSE:FSFL) is actively expanding its development pipeline, with a focus on 400 megawatts of BESS in Spain, enhancing future growth prospects.
- The company has a proactive approach to capital allocation, with plans to divest further assets and return capital to investors, enhancing liquidity and shareholder value.
- 2024 was a challenging year for solar resource, with all geographies experiencing lower-than-budgeted irradiation, impacting production.
- The divestment program in Australia faced delays due to technical assumptions and market complexities, pushing the expected deal closure to Q3 2025.
- There is uncertainty regarding the valuation of Australian assets, with potential write-downs depending on market conditions and bids received.
- The power price outlook has softened, with speculative traders impacting market stability, posing challenges for future revenue projections.
- Grid connection challenges in Spain and the UK, along with competitive markets, may impact the timely execution of development projects.
Good day, ladies and gentlemen, and welcome to Foresight Solar Fund full-year results presentation. (Operator Instructions) I would 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, Managing Director at Foresight Group, to start the presentation.
Thank you, and good morning, everybody. And welcome to the annual results for Foresight Solar for 2024. As we are coming to you from our offices on the 23rd floor of The Shard here, looking around at perfect blue skies outside (multiple speakers) may continue for 2025 and the rest of this year. I'm joined this morning by Toby Virno of the fund management team.
We've got David Goodwin, our Finance Director; Matheus Fierro, our IR lead. And we've also got [Cormac Eldon] from our portfolio management team with us this morning. So I'd say if we split onto the highlights for the year and talk through these, I think 2024 as opposed to
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