BLACKROCK ENERGY AND RESOURCES INCOME TRUST plc
(LEI:54930040ALEAVPMMDC31)
All information is at 30 September 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 1.6% -0.3% 2.5% 3.8% 46.6% 104.4%
value
Share price 2.7% 1.8% 6.0% 5.6% 43.7% 107.3%
Sources: Datastream, BlackRock
At month end
Net asset value – capital only: 130.34p
Net asset value cum income1: 130.46p
Share price: 118.00p
Discount to NAV (cum income): 9.6%
Net yield: 3.8%
Gearing - cum income: 6.2%
Total assets: £159.2m
Ordinary shares in issue2: 122,019,497
Gearing range (as a % of net assets): 0-20%
Ongoing charges3: 1.19%
1 Includes net revenue of 0.12p.
2 Excluding 13,566,697 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 43.0%
Energy Transition 29.9%
Traditional Energy 27.7%
Net Current Liabilities -0.6%
-----
100.0%
=====
Sector Analysis % Total Assets^ Country Analysis % Total
Assets^
Mining:
Diversified 21.7 Global 52.8
Copper 6.4 United States 24.9
Gold 3.2 Canada 8.3
Aluminium 2.9 United Kingdom 3.7
Steel 2.6 Australia 2.4
Industrial Minerals 2.5 Italy 2.2
Uranium 1.3 Other Africa 2.1
Nickel 1.3 Latin America 1.6
Finland 1.3
Metals & Mining 1.1 Germany 0.7
Subtotal Mining: 43.0 Ireland 0.6
Net Current Liabilities -0.6
-----
100.0%
=====
Traditional Energy:
E&P 12.4
Integrated 6.6
Oil Services 3.2
Distribution 2.7
Oil, Gas & Consumable 1.5
Fuels
Refining & Marketing 1.3
Subtotal Traditional 27.7
Energy:
Energy Transition:
Energy Efficiency 13.0
Electrification 7.4
Renewables 6.0
Storage 2.3
Transport 1.2
Subtotal Energy 29.9
Transition:
Net Current Liabilities -0.6
-----
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 5.5% of the
Company’s net asset value.
Ten Largest Investments
Company Region of Risk % Total Assets
Rio Tinto Global 5.4
Anglo American Global 4.4
Glencore Global 3.7
Shell Global 3.2
Teck Resources Global 3.0
Norsk Hydro Global 2.9
Targa Resources United States 2.7
National Grid United Kingdom 2.6
Schneider Electric Global 2.5
ConocoPhillips Global 2.4
Commenting on the markets, Tom Holl and Mark Hume, representing the
Investment Manager noted:
The Company’s Net Asset Value (NAV) increased 1.6% in September 2024 (in
GBP terms).
September was marked by significant volatility in equity markets, driven
by mixed economic data, central bank decisions and geopolitical
uncertainties. In the US, early September conditions mirrored the downturn
seen in early August, reflecting a partial repeat of the summer’s
sell-off, which was triggered by disappointing data from the manufacturing
sector and the jobs market. The Federal Reserve (Fed) reduced borrowing
costs by 0.5%, exceeding the 0.25% cut anticipated by many analysts. Fed
Chair Jerome Powell alleviated concerns by indicating that the US economy
was on track for the “soft landing” that markets had long hoped for.
Towards the end of the month, China contributed to market gains with the
announcement of substantial stimulus measures, as the government
intensified efforts to meet its growth targets for 2024 and beyond.
However, geopolitical uncertainty persisted, particularly with rising
tensions in the Middle East.
Within the energy sector, oil prices fell reflecting concerns about slower
economic growth and oil demand growth from China, where expectations were
revised down from growth of 700kbpd to less than 200kbpd, whilst 2024 sees
oil production rise as large projects in Norway and Guyana move into
production. On the other hand, oil demand from the US, Indian and Asian
ex-China was stronger than expectations, softening the impact of weaker
oil demand from China. Natural gas prices increased on potential
disruption from hurricanes in the US and as demand begins to rise heading
into the winter season. In the days following month end, oil prices
increased on escalating events in the Middle East, with potential for oil
supply disruption. The Brent oil price fell by 9.8%, whilst WTI fell by
7.7%, ending the month at $72/bbl and $69/bbl respectively. The US Henry
Hub natural gas price rose by 37% during the month to end at $2.91/mmbtu.
Within the mining sector, the main news was China announcing a range of
stimulus measures. Iron ore (62% fe), copper and gold prices rose by 8.4%,
6.3% and 5.1% respectively. Meanwhile, energy costs came down during the
month, suggesting a positive outlook for the miners’ margins. Elsewhere,
the uranium price rose by 3.0% as excitement built around nuclear. During
the month, Microsoft signed a deal with Constellation Energy to restart
its Three Mile Island nuclear plant in Pennsylvania to help power its data
centres.
Within the sustainable energy theme, the World Meteorological Organisation
forecast that 2024 will be the warmest on record and that the number of
‘hot days’ faced by major cities would climb, likely further increasing
the demand for cooling and increased related energy demand. Meanwhile, in
clean transportation, the European Commission pushed back against the
European car industry lobby proposed delay of the European Union (EU)’s
CO2 emission target reduction to 93.6 g/km, emphasising that automakers
had ample time to prepare since the regulations were first introduced.
All data points in US dollar terms unless otherwise specified. Commodity
price moves sourced from Thomson Reuters Datastream.
22 October 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.
