BlackRock Energy and Resources Income Trust Plc - Portfolio Update

BlackRock Energy and Resources Income Trust Plc - Portfolio Update

PR Newswire

London, April 25

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

All information is at 31 March 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

10.6%

25.6%

35.2%

45.5%

88.1%

103.8%

Share price

6.3%

27.2%

41.1%

45.2%

95.9%

118.2%

Sources: Datastream, BlackRock

At month end

Net asset value - capital only:

130.49p

Net asset value cum income1:

131.07p

Share price:

127.00p

Discount to NAV (cum income):

3.1%

Net yield:

3.3%

Gearing - cum income:

12.3%

Total assets:

£165.4m

Ordinary shares in issue2:

126,165,391

Gearing range (as a % of net assets):

0-20%

Ongoing charges3:

1.21%

1 Includes net revenue of 0.58p. 2 The Company did not hold any shares in treasury as at 31 March 2022. 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

46.3%

Traditional Energy

31.7%

Energy Transition

24.6%

Net Current Liabilities

-2.6%

-----

100.0%

=====

Sector Analysis

% Total Assets^

Country Analysis

% Total Assets^

Mining:

Diversified

24.9

Global

55.0

Industrial Minerals

6.4

USA

18.9

Copper

4.5

Canada

10.9

Steel

2.9

Latin America

8.4

Gold

2.3

Australia

4.4

Aluminium

2.1

Germany

2.5

Nickel

1.0

Ireland

0.8

Diamonds

0.9

France

0.6

Iron

0.8

India

0.6

Platinum

0.5

South Africa

0.5

Subtotal Mining:

46.3

Other Net Liabilities

-2.6

-----

Traditional Energy:

100.00

E&P

15.6

=====

Integrated

10.7

Refining & Marketing

2.3

Distribution

2.1

Oil Services

1.0

Subtotal Traditional Energy:

31.7

Energy Transition:

Energy Efficiency

8.9

Electrification

7.8

Renewables

4.6

Transport

3.3

Subtotal Energy Transition:

24.6

Net Current Liabilities

-2.6

----

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 9.7% of the Company's net asset value.

Ten Largest Investments

Company

Region of Risk

% Total Assets

Vale

Latin America

Equity

5.6

Bond

2.0

Glencore

Global

6.9

Shell

Global

4.2

BHP

Global

3.7

First Quantum Minerals

Global

Equity

2.6

Bond

0.9

Anglo American

Global

3.1

Chevron

Global

2.7

Samsung

Global

2.7

RWE

Germany

2.5

EDP Renovaveis

Global

2.5

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 10.6% during the month of March (in Sterling terms with dividends reinvested). Russia's invasion of Ukraine dominated headlines and impacted global stock markets, raising concerns around inflation and global economic growth. The implications from this war will be felt across many areas: food markets, commodity markets, disrupted supply chains, defence and energy policy. Ukraine and Russia are exporters of commodities ranging from wheat and cereal crops to iron, steel and food oils. Price inflation in the US and Europe has continued to accelerate, driven by the rising cost of goods and higher energy prices. In the US the Federal Reserve raised interest rates by 0.25% and indicated further rises to come. Against this backdrop, mined commodity prices rose almost across the board on supply uncertainty. This was most apparent in the commodities for which Russia has historically been a significant exporter, such as nickel and palladium, with the nickel price for example rising by 30.1% during the month. Continued increases in global energy costs also put upward-pressure on some of the more energy-intensive mined commodities, such as steel, aluminium and zinc. Within the precious metals space, the gold price rose by 2.0% over the month as the metal saw 'safe-haven' demand, with notable investor inflows into physically backed gold ETFs. The US release of 30million barrels of oil from the strategic petroleum reserve (SPR) at the beginning of the month was followed by the announcement later in the month of a much larger SPR release of 180m barrels, at a rate of 1m barrels per day, in an attempt to soften oil prices. OPEC maintained its policy of raising oil supply each month by 400k barrels per day (bpd). Germany entered into a long-term agreement with Qatar for liquified natural gas(LNG) in an attempt to reduce reliance on Russian gas imports. The International Energy Agency (IEA) have estimated that up to 3mbpd of Russian oil supply may be shut from April. Natural gas prices increased with US Henry Hub price up 28% at $5.64/mmbtu. In Europe natural gas prices remain above $30/mmbtu. The Brent and WTI (West Texas Intermediate) oil prices rose by 4.1% and 4.8%, ending the month at $107/bbl and $100/bbl respectively. Within the energy transition theme, China announced eight major targets on energy, which include increasing power generation from renewables by 39% by 2025, primarily via wind and solar additions, whilst local lockdowns in China increased market concerns over potential supply chain issues. In Europe, where ~40% of energy is sourced from Russia, an increased focus on energy security caused investor interest in renewable energy companies. The REPowerEU proposal included key areas where the EU could act to accelerate renewables and reduce dependence on imported Russian energy. 25 April 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.