Foresight Solar has reported £698m in in unaudited net asset value (NAV) as at 31 December 2023, compared with £707m as at 30 September 2023.
Highlights of the quarter included the sale of the Lorca portfolio stake at a 21% premium to holding value mitigated the negative impacts from updated power price forecasts and actual inflation.
Proceeds from the Lorca transaction, along with free cash, were used to pay down debt, reducing the balance of Foresight Solar’s revolving credit facility to the previously announced £75m target.
Near term power price forecasts continued to trend down in most markets during the period, whilst a slight increase in medium to long-term estimates was observed across all geographies.
When considered against the company’s “well-hedged near-term position” and reduced Electricity Generator Levy payments, the overall impact was negligible.
In the fourth quarter, Foresight Solar also re-benchmarked its UK solar capture price assumptions against actual observed portfolio performance, resulting in a modestly more conservative forecast for potential discounts.
The combination of these factors led to a 1.1pps downside to NAV.