Foresight Solar has reported that its unaudited net asset value (NAV) was £660m at 31 December 2021, compared with £635m at 30 September 2021.
This resulted in a NAV per ordinary share of 108.2 pence at 31 December 2021, compared 104.1 pence at 30 September 2021.
The NAV increase over the fourth quarter was driven by three main factors: increase in power prices, above budget inflation and a discount rate reduction for the Australian asset valuations.
UK power prices strengthened throughout the year, reaching record highs in the fourth quarter.
This was largely driven by increased energy demand following the easing of Covid-19 restrictions, coupled with increasing natural gas prices as supply tightened, compounded by low wind production.
Power prices were significantly ahead of budget for the period driving actual cash receipts from projects, generating a positive impact on NAV of 0.4 pence per share.
Foresight Solar has continued to implement its active power price management strategy, entering into new fixed rate power purchase agreements at prices significantly above forecasts, resulting in a NAV increase of approximately 0.8 pence per share.
The gross asset value (GAV), including company and subsidiaries, at 31 December 2021, was £1172m (30 September 2021: £1106.3m).