NextEnergy Solar Fund Ltd (LSE:NESF) has unveiled a higher dividend at the half-year stage and anticipates this will increase over the coming months.
Reporting on the six months to September, NextEnergy announced a dividend of 4.18p per ordinary share, marking an increase from the 3.76p granted last year.
For the full year, the company said this could increase to 8.35p, which would be up 11% on the 2022 payout.
“I am pleased to announce another period of steady progress in the face of a series of geopolitical and macroeconomic challenges,” chair Helen Mahy commented.
“Your board is taking decisive action to help narrow the discount that the shares trade on in relation to the value of its underlying assets.”
This includes a capital recycling programme, under which NextEnergy said it had sold the 60MW ready-to-build Hatherden solar farm for £15.2 million since September.
Further competitive sales will be carried out, NextEnergy announced, with the proceeds being used to reduce the company’s £177 million of short-term debt.
Ordinary shareholder net asset value stood at £640 million as of September, the company added, marking a 5% fall since the end of the last financial year.
Total installed capacity jumped 5% from the end of the last financial year, meanwhile, to 933MW.