Foresight’s solar funds unaudited net asset value (NAV) as of December 31, 2021 was £660 million, up from £635 million as of September 30, 2021.
As a result, the NAV per ordinary share as of December 31, 2021 was 108.2 pence, compared to 104.1 pence as of September 30, 2021.
Three key variables contributed to the increase in NAV in the fourth quarter: higher electricity prices, above-budget inflation, and a discount rate reduction for Australian asset valuations.
Power prices in the United Kingdom rose steadily throughout the year, reaching new highs in the fourth quarter.
Increased energy demand, as a result of the relaxation of Covid-19 limits, was accompanied by rising natural gas prices as supply constricted, worsened by low wind production.
For the quarter, power prices were well ahead of budget, resulting in actual cash inflows from projects, resulting in a 0.4 penny per share increase in NAV.
Foresight Solar’s active power price management strategy has continued, with the company entering into new fixed rate power purchase agreements at rates well above projections, resulting in a NAV rise of about 0.8 pence per share.
As of December 31, 2021, the gross asset value (GAV), including the corporation and subsidiaries, was £1172 million (30 September 2021: £1106.3 million).