BlackRock Energy and Resources Income Trust Plc - Portfolio Update

BlackRock Energy and Resources Income Trust Plc - Portfolio Update

PR Newswire

London, November 1

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

All information is at 30 September 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

-4.7%

7.4%

-3.2%

30.9%

82.5%

106.7%

Share price

-6.9%

10.7%

-5.9%

32.8%

91.5%

111.0%

Sources: Datastream, BlackRock

At month end

Net asset value - capital only:

123.48p

Net asset value cum income1:

124.71p

Share price:

117.50p

Discount to NAV (cum income):

5.8%

Net yield:

3.7%

Gearing - cum income:

2.8%

Total assets:

£167.6m

Ordinary shares in issue2:

134,356,194

Gearing range (as a % of net assets):

0-20%

Ongoing charges3:

1.21%

1 Includes net revenue of 1.23p. 2 The Company does not have any shares held in treasury at the present time. 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 2021. 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

44.7%

Traditional Energy

33.3%

Energy Transition

23.4%

Net Current Liabilities

-1.4%

-----

100.0%

=====

Sector Analysis

% Total Assets^

Country Analysis

% Total Assets^

Mining:

Diversified

19.6

Global

59.1

Copper

8.8

USA

18.9

Industrial Minerals

7.4

Canada

9.3

Aluminium

3.1

Latin America

6.4

Steel

2.2

Germany

3.7

Gold

1.2

Australia

2.5

Diamonds

1.1

Ireland

0.5

Iron

0.7

France

0.5

Nickel

0.6

India

0.5

Subtotal Mining:

44.7

Net Current Liabilities

-1.4

-----

Traditional Energy:

100.00

E&P

17.3

=====

Integrated

11.6

Oil Services

1.9

Distribution

1.3

Refining & Marketing

1.2

Subtotal Traditional Energy:

33.3

Energy Transition:

Energy Efficiency

7.3

Electrification

7.3

Renewables

4.5

Transport

4.3

Subtotal Energy Transition:

23.4

Net Current Liabilities

-1.4

----

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 1.4% of the Company's net asset value.

Ten Largest Investments

Company

Region of Risk

% Total Assets

Glencore

Global

7.5

First Quantum Minerals

Global

Equity

2.4

Bond

1.8

Vale

Latin America

Equity

2.6

Bond

1.5

Shell

Global

4.0

Albemarle

Global

3.5

ConocoPhillips

Global

3.5

Teck Resources

Global

3.4

BP

Global

3.1

NextEra Energy

United States

3.0

Freeport-McMoRan

United States

2.8

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 -4.7% during the month of September (in Sterling terms with dividends reinvested). Global equity markets fell in September with inflation prints in the US up by+8.3% year-on-year and Europe up by +9.1% year-on-year remaining higher, whilst the central bank commentary continued to confirm a focus on getting inflation down through higher interest rates. The combination of rising interest rates and lower economic growth expectations contributed to the equity market weakness and lower oil prices. Within the broader energy complex, the Nord Stream gas pipelines were sabotaged, whilst UK and European governments brought into effect plans to cap energy prices, to protect households and businesses, at potentially considerable expense. The cost of the UK energy price cap is expected to be in excess of £150 billion, whilst the EU energy support package has been estimated at €600 billion and a further €200 billion 'Defensive Shield' announced by the German Government. After the months end, OPEC announced a cut of 2 million barrels per day from its production target, in a clear positive statement of intent to step into the market and defend the oil price. Brent and WTI (West Texas Intermediate) oil prices fell by 7.4% and 11.2%, ending the month at $89/bbl and $80/bbl respectively. The mining sector came under pressure in September, albeit outperforming broader equity markets. Economic data from China remained weak, with the country's manufacturing PMI (Purchase Managers' Index) for September declining to 48.1 (indicating contraction). There are signs that China is beginning to ease covid restrictions, but we are not expecting a meaningful update until after October's Communist Party Congress. Mined commodity prices were generally weak, with copper and iron ore (62% fe) prices falling by 2.1% and 1.0% respectively. However, precious metals outside of gold were a bright spot, with silver and palladium prices rising by 5.8% and 6.4% respectively. Within the energy transition theme, the European energy crisis has focused attention on the energy transition. Recent months have seen policy makers have put in place the largest package of subsidies to fund the transition to net zero through increased investment in renewable power. Coupled with the more cautious and evolving economic news, this has led to volatility in sustainable energy company share prices in recent months. 1 November 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.