BlackRock Energy and Resources Income Trust Plc - Portfolio Update

BlackRock Energy and Resources Income Trust Plc - Portfolio Update

PR Newswire

London, March 28

BLACKROCK ENERGY AND RESOURCES INCOME TRUST plc (LEI:54930040ALEAVPMMDC31)

All information is at 28 February 2022 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

9.0%

16.2%

23.2%

36.1%

77.7%

81.6%

Share price

9.5%

26.0%

39.0%

36.4%

89.3%

92.2%

Sources: Datastream, BlackRock

At month end

Net asset value - capital only:

118.61p

Net asset value cum income1:

119.54p

Share price:

120.50p

Premium to NAV (cum income):

0.8%

Net yield:

3.4%

Gearing - cum income:

6.1%

Total assets:

£146.0m

Ordinary shares in issue2:

122,141,000

Gearing range (as a % of net assets):

0-20%

Ongoing charges3:

1.21%

1 Includes net revenue of 0.93p. 2 Excluding 0 ordinary shares held in treasury. 3 Calculated as a percentage of average net assets and using expenses, excluding any interest costs and excluding taxation for the year ended 30 November 2021.

Sector Overview

Mining

46.4%

Traditional Energy

31.8%

Energy Transition

21.9%

Net Current Liabilities

-0.1%

-----

100.0%

=====

Sector Analysis

% Total Assets^

Country Analysis

% Total Assets^

Mining:

Diversified

25.3

Global

54.7

Industrial Minerals

5.4

USA

17.1

Copper

4.6

Canada

11.0

Steel

3.0

Latin America

8.7

Gold

2.3

Australia

3.5

Aluminium

2.0

Germany

2.0

Iron

1.1

South Africa

0.8

Diamonds

1.1

Ireland

0.7

Platinum

0.8

India

0.7

Nickel

0.8

France

0.6

Subtotal Mining:

46.4

Russia

0.3

Net Current Liabilities

-0.1

Traditional Energy:

-----

E&P

13.3

100.00

Integrated

12.5

=====

Refining & Marketing

2.7

Distribution

2.3

Oil Services

1.0

Subtotal Traditional Energy:

31.8

Energy Transition:

Energy Efficiency

9.0

Electrification

6.7

Renewables

4.1

Transport

2.1

Subtotal Energy Transition:

21.9

Net Current Liabilities

-0.1

----

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 6.0% of the Company's net asset value.

Ten Largest Investments

Company

Region of Risk

% Total Assets

Vale

Latin America

Equity

5.9

Bond

2.0

Glencore

Global

6.6

Shell

Global

4.5

BHP

Global

3.7

First Quantum Minerals

Global

Equity

2.5

Bond

1.0

Anglo American

Global

3.5

Chevron

Global

2.7

ConocoPhillips

Global

2.7

Vestas Wind

Global

2.4

EDP Renovaveis

Global

2.1

Commenting on the markets, Tom Holl and Mark Hume, representing the Investment Manager noted: The Company's Net Asset Value (NAV) per share increased by 9.0% during the month of February (in Sterling terms with dividends reinvested). February was a difficult month for equity markets, as concerns around Russia's invasion of the Ukraine dominated headlines. At the beginning of the month, investors were focused on central bank interest rate hikes and the potential impact this may have on growth. However, in the second half of the month, attention was refocused on the conflict in Ukraine. The evolution of the conflict between Russia and Ukraine remains uncertain, however at this stage the clearest impact is on food and energy prices. Russia is a significant exporter of commodities, particularly oil and gas, leading to Brent oil and European natural gas prices rising during the month. These higher energy prices could fuel higher or more persistent inflation. Against this backdrop, the iron ore (62% fe.) price came under pressure, returning -5.7% as the physical market remains relatively weak. Performance across the other mined commodities was positive with aluminium, copper, nickel and palladium prices rising by 11.1%, 3.6%, 8.0% and 2.6% respectively. Against an uncertain macroeconomic backdrop, gold bullion also rose, with the precious metal returning +6.0% in February. OPEC maintained its policy of raising oil supply each month by 400k bpd, whilst the International Energy Agency (IEA) announced a release of 60 million barrels of oil (4% of emergency stockpiles) in an attempt to send a message that there will be no shortfall in supplies as a result of Russia's invasion of Ukraine. The IEA noted that commercial oil inventories were at their lowest level since 2014. Natural gas prices remained elevated, particularly so in Europe with prices back above $30/mmbtu, with US Henry Hub price at $4.57/mmbtu. As markets began to question the reliability of gas supplies to Europe, UK power prices rose by more than 50% during the month, reaching £240/MWh. The Brent and WTI (West Texas Intermediate) prices rose by 11.6% and 8.6%, ending the month at $111/bbl and $103/bbl respectively. Within the energy transition theme, higher for longer energy prices may provide a real incentive to accelerate investments in renewable energy and the portfolio's clean power and renewable energy companies performed strongly, reflecting the increased opportunity looking forward. The IPCC (Intergovernmental Panel on Climate Change) released its latest report Climate Change 2022: Impacts, Adaptation, and Vulnerability, which focuses the impacts, physical risks, and adaptation to climate change. The report highlights the already significant observed impacts on our climate and focuses on the connectivity between humans, ecosystems and climate change. 28 March 2022

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.