Foresight Solar Fund Ltd (LSE:FSFL) told investors it remains on-track to pay its target dividend, 8p per share, for the year as business was supported by power price hedging.
The investment vehicle, in a calendared statement, reported a third-quarter net asset value (NAV) of £639.90 million, or 112.6p per share, as of 30 September 2024, factoring negative recent power price forecasts and below-average weather conditions during peak production periods.
It noted that ‘below-budget irradiation’ persisted from July to September – in other words, it was a less sunny summer – but, noted that Foresight’s investments saw strong operational availability.
Specifically, Foresight detailed: “Solar resource was 3.0% below budget across markets in the three months to 30 September 2024, leading to production 5.3% lower than expected.
“Overall, irradiation across geographies was 3.2% under expectation year-to-date and cumulative production for the global portfolio was 6.5% under budget for the year.”
In terms of financials, Foresight said it continues to prioritise debt repayment and share buybacks, in accordance with the company's capital allocation policy.
It noted that the firm’s drawn balance is currently £75 million, in line with the end of the prior quarter.
Foresight, meanwhile, said it is continuing the process to divest of the Australian operational solar and development-stage BESS portfolio, and, the board expects to have more detail in the first half of 2025.