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US Solar Fund PLC announced its annual results for the year ended 31 December 2024, reporting an audited Net Asset Value (NAV) of $194.2 million ($0.63 per share) and an IFRS loss of $34.8 million. During the year, the Company distributed $28.9 million to shareholders, comprising $10.3 million in dividends (2.25 cents per share for 2024) and an $18.6 million tender offer that concluded in June 2024. US Solar Fund's Annual General Meeting will be held on 20 May 2025, where a special resolution will be proposed for shareholders to vote on winding up or reconstructing the Company, following its average discount to NAV exceeding 10% during 2024.
| Date | 10 Apr 2025 |
| Time | 07:00:03 |
| Category | Results |
| ID | 3815E |
Annual Financial Report
10 April 2025
US SOLAR FUND PLC
('USF', the 'Company')
FULL YEAR RESULTS TO 31 DECEMBER 2024
NOTICE OF AGM
US Solar Fund plc (LON: USF (USD)/USFP (GBP)), the renewable energy fund investing in utility-scale solar power plants across North America, is pleased to announce its annual results for the year ended 31 December 2024.
FINANCIAL HIGHLIGHTS
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Audited Net Asset Value (NAV) of $194.2m or $0.63 per share (31 December 2023: $258.2m or $0.78 per share), a NAV total return of (13.4%) (31 December 2023: (1.7%), largely driven by: |
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Shareholder distributions of $28.9m, including $10.3m of dividends recognised in the period and the $18.6m tender offer which concluded in June 2024 |
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Increase of $21.3m due to changes in merchant curves, offset by discount rate widening ($48.2m) and updates to operating cost assumptions ($15.9m) |
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The valuation discount rate used increased to 10.8% (2023: 8.8%) due to market dynamics including the uncertainties created by the lead up to and results of the US federal election in November 2024, which has negatively impacted asset valuations within the US renewables sector |
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Dividends of 2.25 cents per share for 2024. Operational dividend cover of 1.10x for 2024 (31 December 2023: 0.50x) |
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During the year c.$18.6m was distributed to shareholders on account of the tender offer that concluded in June 2024, which utilised the remaining proceeds from the sale of the Company's interest in the Mount Signal 2 asset (MS2) which closed in June 2023 |
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IFRS loss for the year of $34.8m (31 December 2023: ($43.1m)), primarily driven by the reduction in overall unrealised fair value of the Company's assets due to factors including increased discount rates and changes to underlying asset cash flow forecasts |
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Gill Nott, Chair of US Solar Fund, said:
"2024 has been a challenging year for US Solar Fund, and investment companies more widely, with tough market conditions continuing to impact trading activity and valuations. The Board and Investment Manager have remained proactive in addressing issues within their control. However, the results of the US election in November 2024 and statements made by the incoming administration during the period influenced market dynamics and increased discount rates relevant to the Company's valuation.
During the year, the Board delivered on its commitment to return capital to shareholders, via an $18.6m tender offer. The Board has resized the Company's revolving credit facility, and reduced the dividend target on an interim basis to ensure the balance sheet remains robust. Following a detailed analysis of options available to the Company to refinance its existing senior debt facilities, the Board is taking steps to conclude a refinancing by the end of April 2025.
The Board and Investment Manager will continue to monitor the market for comparable sales of performing operational portfolios, with a view to realising value from the Company's assets when the time is right. The Board and I maintain an optimistic outlook for the Company because of its robust operational portfolio with assets located in states which continue to support renewable generation"
OPERATIONAL HIGHLIGHTS
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Portfolio of 41 operating solar assets with a total capacity of 443MWDC |
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Total generation of 698GWh (2023: 715GWh on a like-for-like portfolio basis (excluding MS2, which was sold in 2023) |
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Electricity generated by USF's portfolio equates to 448,600 tCO2e emissions displaced (31 December 2023: 480,900 tCO2e) and 106,800 equivalent US cars removed from the road (31 December 2023: 104,500) |
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Overall generation was 9.0% below budget, of which 2.9% was attributable to below forecast solar irradiance (versus 2.0% in 2023), and 6.1% attributable to unscheduled outages and other non-irradiance related factors (versus 5.2% in 2023), such as utility grid outages |
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The Investment Manager has instigated multiple asset-management related activities to enhance operational efficiencies and portfolio performance, including replacing underperforming operations and maintenance subcontractors and developing a master diagnostic and remediation plan to strategically and methodically address technical issues impacting overall portfolio performance. Initiatives progressed during 2024 are expected to result in improved portfolio performance in 2025 and beyond |
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Portfolio weighted average PPA term of 10.8 years (31 December 2023: 11.9 years). All PPA counterparties are investment-grade (Average offtaker credit rating of BBB+) |
CAPITAL MANAGEMENT AND OUTLOOK
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During the period, the Company's revolving credit facility ("RCF") was reduced from $40 million to $20 million and the Board and Investment Manager will continue to assess the ongoing need for the RCF |
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The Board announced its intention to carry out a potential refinancing in April 2024. Following detailed analysis, a bank refinancing was determined to be the more attractive option because of its structural flexibility and is expected to conclude by the end of April 2025 |
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The Company's operating solar assets remain well-located, within host states which remain committed to renewable energy targets and progressive policies which are compatible with renewable generation |
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While statements made during the November 2024 US federal election campaign, and the subsequent Executive Order entitled "Unleashing American Energy" have created policy objectives which continue to drive uncertainty within the US renewable market and more broadly, the long-term outlook for renewable energy in the US remains strong on the back of state-level mandates and the overall cost competitiveness of renewable energy |
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The Board and Investment Manager will continue to closely monitor changes to market conditions that might suggest a favourable environment capable of delivering value to shareholders. In the meantime, the Investment Manager will continue to act as a responsible steward of the Company and its assets, and remain focused on taking steps to optimise, enhance and position the Company for a future liquidity event which delivers value to shareholders |
NOTICE OF AGM AND OTHER INFORMATION
USF's 2025 Annual General Meeting will be held on 20 May 2025 at 3pm at the offices of JTC (UK) Limited, The Scalpel, 18th Floor, 52 Lime Street, London EC3M 7AF.
As required by the Company's Articles of Association, because the Company has traded at an average discount to NAV in excess of 10% during 2024, a special resolution will be proposed at the Company's forthcoming AGM, for shareholders to vote to wind up or otherwise reconstruct the Company. If such a discontinuation resolution is passed, the Company's Articles provide the Board with four months to put forward a proposal. The prevailing market uncertainty means that now is not the right time to attempt a sale of the Company's portfolio. For this reason, the Board recommends that shareholders vote AGAINST the discontinuation of the Company at the forthcoming AGM.
The Company's Annual Report and Financial Statements for the year ended 31 December 2024 and the formal Notice of the Annual General Meeting will be posted to shareholders. In accordance with UK Listing Rule 6.4.1, copies of the documents have been submitted to the UK Listing Authority and will shortly be available to view on the Company's corporate website at http://www.ussolarfund.co.uk and for inspection from the National Storage Mechanism at: https://data.fca.org.uk/#/nsm/nationalstoragemechanism
ENDS
For further information, please contact:
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US Solar Fund Meredith Frost (Amber)
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+44 20 7939 0550
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Cavendish Capital Markets Limited Tunga Chigovanyika
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+44 20 7397 8900
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KL Communications Charles Gorman Charlotte Francis Amy Levingston Smith
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+44 20 3882 6644
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About US Solar Fund plc
US Solar Fund plc, established in 2019, listed on the premium segment of the London Stock Exchange in April 2019. The Company's investment objective is to provide investors with attractive and sustainable dividends with an element of capital growth by owning and operating solar power assets in North America and other OECD countries in the Americas.
The solar power assets that the Company acquires or constructs are expected to have an asset life of at least 30 years and generate stable and uncorrelated cashflows by selling electricity to creditworthy offtakers under long-term power purchase agreements (or PPAs). The Company's portfolio currently consists of 41 operational solar projects with a total capacity of 443MWDC, all located in the United States.
Further information on the Company can be found on its website at http://www.ussolarfund.co.uk.
About Amber Infrastructure Group
Amber Infrastructure Investment Advisor LLC, a subsidiary of the Amber Infrastructure Group, was appointed as the Company's Investment Manager on 1 December 2023.
Amber Infrastructure is an international infrastructure specialist, focused on investment origination, development, asset management and in Europe, fund management. Amber's core business focuses on infrastructure assets across the public, transport, energy, digital and demographic infrastructure sectors that support the lives of people, homes and businesses internationally.
Among other funds, Amber advises International Public Partnerships, a FTSE 250-listed company with a market cap of approximately £2.5 billion and 15-year track record of long-term investment in infrastructure assets globally. Amber is headquartered in London with offices in Europe, North America, Australia and New Zealand and employs over 180 infrastructure professionals.
Amber has had a strategic partnership with the Hunt Group of Companies in the US since 2015 and completed their previously announced strategic transaction with Boyd Watterson in August 2024. Amber is part of Boyd Watterson Global Asset Management Group LLC, a global diversified infrastructure, real estate and fixed income business with over $35.7 billion in assets under management and over 300 employees with offices in eight US cities and presence in twelve countries.
Learn more at www.amberinfrastructure.com