BlackRock Energy and Resources Income Trust Plc Portfolio Update
April 27 2023 - 6:47AM
UK Regulatory
TIDMBERI
BLACKROCK ENERGY AND RESOURCES INCOME TRUST plc (LEI:54930040ALEAVPMMDC31)
All information is at 31 March 2023 and unaudited.
Performance at month end with net income reinvested
One Three Six One Three Five
Month Months Months Year Years Years
Net asset value -2.5% -2.3% 8.7% 5.2% 181.8% 122.7%
Share price -2.8% -1.4% 12.5% 5.9% 234.3% 131.3%
Sources: Datastream, BlackRock
At month end
Net asset value - capital only: 133.00p
Net asset value cum income1: 133.29p
Share price: 130.00p
Discount to NAV (cum income): 2.5%
Net yield: 3.4%
Gearing - cum income: 13.7%
Total assets: £180.7m
Ordinary shares in issue2: 135,586,194
Gearing range (as a % of net assets): 0-20%
Ongoing charges3: 1.13%
1 Includes net revenue of 0.29p.
2 Excluding 0 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 2022. 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.
Sector Overview
Mining 47.5%
Traditional Energy 29.1%
Energy Transition 25.6%
Net Current Liabilities -2.2%
-----
100.0%
=====
Sector Analysis % Total Assets Country Analysis % Total
^ Assets^
Mining:
Diversified 21.1 Global 60.3
Copper 11.3 USA 16.9
Industrial Minerals 5.2 Latin America 8.8
Aluminium 2.8 Canada 7.9
Steel 2.5 Germany 4.3
Gold 2.0 Australia 2.5
Nickel 1.7 Ireland 0.6
Uranium 0.8 France 0.5
Platinum Group Metals 0.3 Denmark 0.4
Tin -0.2 Net Current Liabilities -2.2
Subtotal Mining: 47.5 -----
100.0
Traditional Energy: =====
Integrated 14.7
E&P 12.6
Distribution 1.3
Refining & Marketing 0.5
Subtotal Traditional Energy: 29.1
Energy Transition:
Electrification 9.8
Energy Efficiency 6.6
Transport 4.6
Renewables 4.3
Subtotal Energy Transition: 25.6
Net Current Liabilities -2.2
----
100.0
=====
^ 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 11.3% of the Company's net asset value.
Ten Largest Investments
Company Region of Risk % Total Assets
Vale Latin America
Equity 4.3
Bond 1.2
Glencore Global 5.0
Exxon Mobil Global 4.7
BHP Global 4.3
Teck Resources Global 3.8
First Quantum Minerals Global
Equity 2.1
Bond 1.4
Shell Global 3.4
NextEra Energy United States 3.0
BP Global 2.9
Canadian Natural Resources Canada 2.7
Commenting on the markets, Tom Holl and Mark Hume, representing the Investment
Manager noted:
The Company's Net Asset Value (NAV) per share decreased by 2.5% during the
month of March (in GBP terms).
Stock markets rose during the month that saw large swings in interest rate and
growth expectations. The failure of Silicon Valley Bank in US, a large banking
partner for earlier stage technology companies and private companies,
contributed to heightened market volatility. In Europe the decision to combine
UBS and Credit Suisse further added to uncertainty. The Fed hiked interest
rates by 25bps, and this shift in interest rate expectations contributed
towards a rebound in equity markets, with the MSCI ACWI TR Index rising by
2.8%.
Within the energy sector, an apparent de-risking of energy positions, with a
potentially new headwind to growth in the form of tighter financial conditions,
contributed to a fall in the oil price and energy stocks. The price moves did
not appear to be driven by fundamentals with little evidence of weakness in
physical demand. After month end, OPEC announced a cut to production targets of
1 million bpd, which was a surprise, but was in line with prior proactive
action in October 2022 where OPEC acted to defend the oil price. OPEC no longer
sees such a threat from US shale oil production of undermining their control if
they cut production early to support the oil price. Against this backdrop,
Brent and WTI (West Texas Intermediate) oil prices fell by 4.8% and 1.7%,
ending the month at $79/bbl and $76/bbl respectively.
Within the mining sector, there have been positive signs that Chinese demand
will pull through, such as higher steel production rates and improved economic
indicators such as their Manufacturing PMI, which came in at 51.6. Market
concerns about increasing risks for another financial crisis and expectations
for a lower rate hike supported the gold price, which rose by 8.2%. Other mined
commodity prices were also up due to positive signs on China's reopening,
including copper and iron ore (62% fe) which rose by 0.6% and 0.8%
respectively.
Within the energy transition theme, more details emerged around the European
Green Industrial Plan, which aims to ensure domestic manufacturing capacity
related to clean tech and is partly a response to the US Inflation Reduction
Act. Within the energy transition theme, more details emerged around the
European Green Industrial Plan, which aims to ensure domestic manufacturing
capacity related to clean tech and is partly a response to the US Inflation
Reduction Act. At least 40% of the EU's low-carbon technologies, ranging from
solar panels to heat pumps, will need to be made within EU borders by 2030
under the newly proposed plans.
27 April 2023
ENDS
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.
END
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