BlackRock Energy and Resources Income Trust Plc - Portfolio Update

BlackRock Energy and Resources Income Trust Plc - Portfolio Update

PR Newswire

London, June 22

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

All information is at 31 May 2021 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

3.0%

11.2%

27.5%

61.4%

33.4%

112.5%

Share price

5.2%

12.3%

46.9%

96.6%

50.0%

120.9%

Sources: Datastream, BlackRock

At month end

Net asset value - capital only:

99.64p

Net asset value cum income1:

100.72p

Share price:

102.50p

Premium to NAV (cum income):

1.8%

Net yield:

3.9%

Gearing - cum income:

5.2%

Total assets:

£117.1m

Ordinary shares in issue2:

116,270,349

Gearing range (as a % of net assets):

0-20%

Ongoing charges3:

1.25%

1 Includes net revenue of 1.08p. 2 Excluding 2,695,651 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 2020. The Company's Ongoing Charges for each financial year to 30 November are capped at 1.25% of average daily net asset value for that period.

Sector Overview

Mining

49.2%

Energy

28.9%

Energy Transition

22.5%

Net Current Liabilities

-0.6%

-----

100.0%

=====

Sector Analysis

% Total Assets^

Country Analysis

% Total Assets^

Mining:

Diversified

25.7

Global

55.9

Copper

7.7

USA

16.7

Industrial Minerals

4.6

Latin America

10.1

Gold

4.1

Canada

9.7

Steel

2.6

Australia

2.2

Iron

1.3

Germany

1.9

Diamonds

1.3

South Africa

1.9

Platinum

1.2

France

0.8

Nickel

0.7

Ireland

0.7

Subtotal mining:

49.2

United Kingdom

0.5

Africa

0.2

Energy:

Net Current Liabilities^

-0.6

E&P

13.6

Integrated

10.6

-----

Refining & Marketing

3.1

100.00

Distribution

1.2

=====

Oil Services

0.4

Subtotal Energy:

28.9

Energy Transition:

Electrification

8.8

Energy Efficiency

7.0

Renewables

4.9

Transport

1.0

Storage

0.8

Subtotal Energy Transition:

22.5

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 4.6% of the Company's net asset value.

Ten Largest Investments

Company

Region of Risk

% Total Assets

Vale

Latin America

Equity

7.2

Bond

2.9

Rio Tinto

Global

4.3

BHP

Global

4.0

Chevron

Global

3.9

Freeport-McMoran

United States

3.9

Anglo American

Global

3.8

Glencore

Global

3.5

Enel

Global

3.1

ConocoPhillips

Global

2.8

Vestas Wind

Global

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 increased by 3.0% during the month of May (in Sterling terms with dividends reinvested). The reopening of economies supported a positive global economic outlook, whilst the pace of rollout of vaccinations in Europe is improving. US employment data for April, in the form of non-farm payrolls, was weaker than expected with inflation data stronger than expected, which supported commodity related sectors, including energy. Federal Reserve officials continued to suggest the central bank would look through transitory inflation data, consistent with previous announcements. The US Colonial Pipeline company was the subject of a cyber attack, which took its key pipeline offline before a ransom was paid to regain control. Market expectations have been for an Iran/US nuclear deal that would pave the way for Iranian oil exports to resume, whilst the US navy fired warning shots at Iranian vessels, underlying the continuing geopolitical tensions. Against this backdrop, Brent and WTI (West Texas Intermediate) increased by 2.4% and 4.3%, ending the month at $69/bbl and $66/bbl respectively. The mining sector continued to outperform broader equity markets in May. Mined commodity prices performed well, with copper and iron ore (62% fe) prices reaching fresh all-time highs. A combination of strong economic activity in China, with its manufacturing Purchase Managers' Index at 52.0, and stronger demand in the US and Europe helped boost prices. The period also saw robust performance from precious metals, with gold rising by 7.7% as a weakening US Dollar and rising inflation expectations acted as tailwinds. Turning to the companies, the team attended the Bank of America Global Metals, Mining and Steel 2021 Conference during the month and were encouraged by the general rhetoric around continued capital discipline. Within the energy transition space, as part of the UK's plan to reach net zero CO2 emissions by 2050 it was suggested that homeowners may have to replace gas heating with efficient heat pumps when a property is sold. The International Maritime Organisation (IMO), which plans to reduce CO2 emissions from shipping by 50% by 2050 agreed a step towards this through a reduction of 2% CO2 emissions annually from 2023-2026. 23 June 2021

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.