Foresight Solar updates on covid-19 and reaffirms 2020 dividend target

Foresight Solar 2018 results published: Things looking up

Foresight Solar (FSFL) has provided an update to investors on its response to the covid-19 outbreak. The takeaweays are:

  • in FY20 there has been no operational disruption linked to covid-19;
  • The Company has conducted a full review of all key service providers. It has confidence in the resilience of their business continuity plans.
  • Foresight has been working closely with its key operational counterparties to ensure that adequate business continuity plans are in place and that operational risks are minimised.
  • Foresight anticipates that there may be a further short-term reduction in power prices due to an anticipated drop in demand, however it says that power prices are forecast to improve over the medium term.
  • There is currently no evidence to suggest that Covid-19 will materially affect the Company’s operational or financial performance.

FSFL re-affirms its FY 2020 dividend target of 6.91 pence per share.

About Foresight Solar Fund

Foresight Solar Fund Limited invests in a diversified portfolio of ground-based solar PV assets in the UK and internationally, to provide its shareholders with a sustainable and increasing income stream. 

The Company’s portfolio consists of ground based, operational solar power plants predominantly in the UK. Investments outside the UK and assets which are still, when acquired, under construction are limited to 25 per cent. of the Gross Asset Value of the Company, calculated at the time of investment.

Power purchase agreements (PPA) are entered into between each of the individual solar power plant SPVs in its portfolio and creditworthy offtakers in the UK. Under the PPAs, the SPVs sell solar generated electricity and green benefits to the designated offtaker. The Company may retain exposure to UK power prices through PPAs that avoid mechanisms, such as fixed prices or price floors.

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