BLACKROCK ENERGY AND RESOURCES INCOME TRUST plc
(LEI:54930040ALEAVPMMDC31)
All information is at 31 October 2024 and unaudited.
Performance at month end with net income reinvested
One Three Six One Three Five
Month Months Months Year Years Years
Net asset 1.1% 0.3% -0.3% 12.8% 39.6% 117.3%
value
Share price 1.1% 0.3% -0.8% 14.2% 33.9% 120.6%
Sources: Datastream, BlackRock
At month end
Net asset value – capital only: 131.57p
Net asset value cum income1: 131.85p
Share price: 119.25p
Discount to NAV (cum income): 9.6%
Net yield: 3.8%
Gearing - cum income: 7.4%
Total assets: £160.8m
Ordinary shares in issue2: 121,964,497
Gearing range (as a % of net assets): 0-20%
Ongoing charges3: 1.19%
1 Includes net revenue of 0.28p.
2 Excluding 13,621,697 ordinary shares held in treasury.
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 2023. 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 40.1%
Energy Transition 30.3%
Traditional Energy 30.3%
Net Current Liabilities -0.7%
-----
100.0%
=====
Sector Analysis % Total Assets^ Country Analysis % Total
Assets^
Mining:
Diversified 19.7 Global 50.2
Copper 6.1 United States 23.5
Gold 3.6 Canada 11.9
Aluminium 2.7 Latin America 3.5
Industrial Minerals 2.4 United Kingdom 3.4
Uranium 2.1 Australia 2.3
Nickel 1.3 Italy 2.2
Steel 1.2 Other Africa 2.0
Germany 0.6
Metals & Mining 1.0 Ireland 0.6
Subtotal Mining: 40.1 Finland 0.5
Net Current Liabilities -0.7
-----
100.0%
=====
Traditional Energy:
E&P 14.9
Integrated 6.7
Oil Services 3.4
Distribution 3.2
Oil, Gas & Consumable 1.6
Fuels
Refining & Marketing 0.5
Subtotal Traditional 30.3
Energy:
Energy Transition:
Energy Efficiency 13.2
Electrification 7.3
Renewables 6.5
Storage 2.2
Transport 1.1
Subtotal Energy 30.3
Transition:
Net Current Liabilities -0.7
-----
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 6.7% of the
Company’s net asset value.
Ten Largest Investments
Company Region of Risk % Total Assets
Rio Tinto Global 5.0
Anglo American Global 3.9
Shell Global 3.3
Targa Resources United States 3.2
Vale - ADS Latin America 2.7
Vertiv Holdings Global 2.7
Norsk Hydro Global 2.6
ConocoPhillips Global 2.6
Schneider Electric Global 2.5
Teck Resources Global 2.5
Commenting on the markets, Tom Holl and Mark Hume, representing the
Investment Manager noted:
The Company’s Net Asset Value (NAV) increased by 1.1% in October 2024 (in
GBP terms).
Global equity markets fell during the month. US economic data pointed to
stronger than expected growth with a higher number of jobs added in
September 2024 and upward revisions to prior months. US inflation data as
shown by core Consumer Price Index (CPI) also remained higher than
expected. These led to US bond yields rising and reduced expectations
around the scale and pace of US interest rate cuts. In Europe, the ECB
reduced interest rates by a further 0.25% following lower growth,
employment and inflation data. Positive sentiment from China’s boost from
monetary stimulus announced last month eased with a lack of clarity over
the potential for fiscal stimulus measures. Higher broader market
valuation levels going into Q3 results, US election uncertainty, changes
in interest rate expectations and elevated geopolitical risks have
contributed to notable individual stock price reactions.
Within energy, in recent months geopolitical risk in the Middle East has
contributed to oil price volatility. During October 2024, oil prices rose
to $80 on the potential for risk of disruption to energy infrastructure,
before falling back to end the month little changed. Brent and WTI oil
prices rose by 1.2%, ending the month at $73/bbl and $70bbl respectively.
The US Henry Hub natural gas price fell -7% during the month to end at
$2.7/mmbtu, as gas producers continued to add back supply, which had
previously been curtailed.
The mining sector had challenged performance in October as a lack of
detail on China’s stimulus measures weighed on commodities. In the
commodities space, iron ore (62% fe), copper and nickel fell by 7.3%, 3.3%
and 10.5% respectively. The aluminium price held up better, down by just
0.7%, as supply was disrupted by port issues at Jamalco and as future
supply looked set to be increasingly constrained by Alcoa announcing the
curtailment of its Kwinana alumina refinery in Western Australia. In the
precious metals space, gold and silver prices rose by 4.1% and 4.8%
respectively, appearing to benefit from ‘safe-haven’ demand as a result of
ongoing geopolitical tensions in the Middle East and the approaching U.S.
presidential election. Additionally, we saw more technology hyperscalers
indicating a preference for nuclear to power their artificial intelligence
(AI) datacentres, which lifted sentiment on uranium and uranium miners.
Within the sustainable energy theme, the Internation Energy Agency (IEA)
released its World Energy Outlook 2024 and Renewables 2024. IEA expect
more than 5,500GW of new renewable energy capacity between 2024 and 2030.
Solar is expected to account for c.80% of this new capacity due to growth
in manufacturing capacity and a continuation of improving solar PV
economics. The EU announced tariffs on China EV imports in addition to the
existing 10%, ranging from an additional 17% to 35%.
26 November 2024
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.
Release
