BlackRock Energy and Resources Income Trust Plc - Portfolio Update
July 02 2024 - 5:20AM
UK Regulatory
BlackRock Energy and Resources Income
Trust Plc - Portfolio Update
PR Newswire
LONDON, United Kingdom, July 02
BLACKROCK ENERGY AND RESOURCES INCOME TRUST plc
(LEI:54930040ALEAVPMMDC31)
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All
information is at
31 May 2024 and
unaudited.
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Performance
at month end with net income reinvested
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One
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Three
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Six
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One
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Three
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Five
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Month
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Months
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Months
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Year
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Years
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Years
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Net
asset value
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2.9%
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15.8%
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13.9%
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16.6%
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53.0%
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123.8%
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Share
price
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-0.8%
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16.9%
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12.3%
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13.2%
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32.9%
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119.5%
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Sources:
Datastream, BlackRock
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At month end
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Net
asset value – capital only:
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137.55p
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Net
asset value cum income1:
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138.32p
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Share
price:
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121.50p
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Discount to NAV
(cum income):
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12.2%
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Net
yield:
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3.7%
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Gearing - cum
income:
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9.5%
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Total
assets:
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£172.3m
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Ordinary shares
in issue2:
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124,586,194
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Gearing range (as
a % of net assets):
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0-20%
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Ongoing
charges3:
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1.19%
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1 Includes net
revenue of 0.77p.
2 Excluding
11,000,000 ordinary shares held in treasury.
3 The Company’s
ongoing charges are calculated as a percentage of average daily net
assets and using the management fee and all other operating
expenses excluding finance costs, direct transaction costs, custody
transaction charges, VAT recovered, taxation and certain other
non-recurring items for the year ended 30 November 2023.
In
addition, the Company’s Manager has also agreed to cap ongoing
charges by rebating a portion of the management fee to the extent
that the Company’s ongoing charges exceed 1.25% of average net
assets.
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Sector Overview
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Mining
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45.8%
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Traditional
Energy
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28.5%
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Energy
Transition
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26.4%
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Net
Current Liabilities
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-0.7%
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-----
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100.0%
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=====
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Sector Analysis
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% Total Assets^
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Country Analysis
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% Total Assets^
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Mining:
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Diversified
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23.6
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Global
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52.4
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Copper
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7.9
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USA
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20.7
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Steel
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3.8
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Canada
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9.5
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Industrial
Minerals
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2.9
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Latin
America
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4.1
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Gold
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2.5
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Other
Africa
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2.8
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Aluminium
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1.8
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Germany
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2.6
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Metals &
Mining
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1.8
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United
Kingdom
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2.5
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Nickel
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1.5
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Australia
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2.4
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Subtotal
Mining:
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45.8
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France
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1.8
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Italy
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1.3
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Ireland
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0.6
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Net
Current Liabilities
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-0.7
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Traditional
Energy:
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-----
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E&P
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12.3
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100.0
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Integrated
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8.5
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Distribution
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3.3
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Oil
Services
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2.2
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Oil,
Gas & Consumable Fuels
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1.4
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Refining &
Marketing
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0.8
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Subtotal
Traditional Energy:
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28.5
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Energy
Transition:
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Energy
Efficiency
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9.5
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Electrification
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7.1
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Renewables
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5.5
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Transport
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3.0
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Storage
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1.3
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Subtotal
Energy Transition:
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26.4
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Net
Current Liabilities
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-0.7
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----
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100.0
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=====
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^
Total Assets for the purposes of these calculations exclude bank
overdrafts, and the net current liabilities figure shown in the
tables above therefore exclude bank overdrafts equivalent to 8.7%
of the Company’s net asset value.
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Ten Largest Investments
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Company
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Region of Risk
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% Total Assets
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Anglo
American
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Global
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4.7
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Rio
Tinto
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Global
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4.7
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Teck
Resources
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Global
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4.2
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Glencore
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Global
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3.4
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Shell
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Global
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3.3
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Filo
Corp
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Latin
America
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2.6
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NextEra
Energy
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United
States
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2.5
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BHP
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Global
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2.3
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Schneider
Electric
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Global
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2.2
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Hess
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Global
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2.1
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Commenting on the
markets, Tom Holl and Mark Hume, representing the Investment
Manager noted:
The
Company’s Net Asset Value (NAV) returned by 2.9% during the month
of May (in GBP terms).
In
2024, US inflation and growth have been higher than expected
resulting in bond yields rising, to price in one or two interest
rate cuts by year end, having previously indicated up to six cuts.
In May, however, US core PCE inflation eased, and payroll growth
was less than expected. US Tech and AI-related Q1 earnings growth
was strong, with evidence of a broadening of earnings growth beyond
these areas supporting global equity markets. Mining equities
outperformed broader equity markets in May, however, helped by
improving sentiment around China, mined commodity prices remained
at strong levels. Economic activity in China showed signs of
improvement and support measures for its struggling property market
were announced, with its central bank setting up a CN¥ 300 billion
(US$42 billion) facility for local state-owned enterprises to buy
unsold homes. After a strong run in April, most mined commodity
prices were relatively flat through May. The copper price reached a
new all-time high of US$5.20/lb during the month but pulled back to
end the period up just by 0.2%, whilst the silver price rose by
14.8% on strong physical demand in Asia. In company news, after a
month of negotiations, BHP withdrew its proposed takeover of Anglo
American after the companies failed to reach an
agreement.
Within energy,
economic data that was lower-than-expected and a normalisation of
refining margins during the month from higher levels, created
uncertainty around oil demand growth and relative weakness in
energy equities. M&A activity within energy remained a feature:
Conocophillips announced plans to acquire Marathon Oil at a
relatively low premium, in a further sign of US shale consolidation
and indicative of industry capital discipline. The Brent oil price
fell by 10.0%, whilst WTI fell by 6.6%, ending the month at $79/bbl
and $78/bbl respectively. The US Henry Hub natural gas price rose
by 32% during the month to end at $2.58/mmbtu.
Within the energy
transition theme, recent analysis forecast rapid increases in
electricity demand from the build out of AI data centres (Thunder
Said Energy estimate +1000TWh in in the US by 2030). Not only does
the expected increase in power demand require huge investment in
new electricity generation, but it will also necessitate investment
in the electricity grid and related infrastructure. The
hyperscalers building the AI data centres have previously announced
decarbonisation targets and therefore these may further accelerate
investment in renewable power. Microsoft recently announced a
global framework with Brookfield to supply 10.5GW of new renewable
projects between 2026-2030. Clean power utility RWE announced two
power purchase agreements with Microsoft for onshore wind projects
in Texas. Private equity groups appear to be recognising the
valuation opportunity in the publicly listed sector with a number
of acquisitions of renewable energy developers announced at
significant bid premiums to where the stocks were trading. KKR bid
for Encavis at a 60% premium, EQT bid for OX2 at a 43% premium and
BNN Bloomberg reported that Brookfield was in negotiations to
purchase a majority stake in Neoen.
All
data points in US dollar terms unless otherwise specified.
Commodity price moves sourced from Thomson Reuters
Datastream.
02
July 2024
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ENDS
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Latest
information is available by typing www.blackrock.com/uk/beri on the
internet, "BLRKINDEX" on Reuters, "BLRK" on Bloomberg or "8800" on
Topic 3 (ICV terminal).
Neither the
contents of the Manager’s website nor the contents of any website
accessible from hyperlinks on the Manager’s website (or any other
website) is incorporated into, or forms part of, this
announcement.
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