Blackrock Energy & Resources Income Trust PLC

Earnings Release • Apr 27, 2023

National Storage Mechanism | Additional information

BlackRock Energy and Resources Income Trust Plc - Portfolio Update

PR Newswire

London, April 27

BLACKROCK ENERGY AND RESOURCES INCOME TRUST plc (LEI:54930040ALEAVPMMDC31)
All information is at 31 March 2023 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	-2.5%			-2.3%		8.7%			5.2%	181.8%		122.7%
Share price	-2.8%			-1.4%		12.5%			5.9%	234.3%		131.3%
Sources: Datastream, BlackRock
At month end
Net asset value – capital only:								133.00p
Net asset value cum income1:								133.29p
Share price:								130.00p
Discount to NAV (cum income):								2.5%
Net yield:								3.4%
Gearing - cum income:								13.7%
Total assets:								£180.7m
Ordinary shares in issue2:								135,586,194
Gearing range (as a % of net assets):								0-20%
Ongoing charges3:								1.13%
1 Includes net revenue of 0.29p. 2 Excluding 0 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 2022. 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		47.5%
Traditional Energy		29.1%
Energy Transition		25.6%
Net Current Liabilities		-2.2%
		-----
		100.0%
		\=====
Sector Analysis		% Total Assets^					Country Analysis				% Total Assets^
Mining:
Diversified		21.1					Global				60.3
Copper		11.3					USA				16.9
Industrial Minerals		5.2					Latin America				8.8
Aluminium		2.8					Canada				7.9
Steel		2.5					Germany				4.3
Gold		2.0					Australia				2.5
Nickel		1.7					Ireland				0.6
Uranium		0.8					France				0.5
Platinum Group Metals		0.3					Denmark				0.4
Tin		-0.2					Net Current Liabilities				-2.2
Subtotal Mining:		47.5									-----
											100.0
Traditional Energy:											\=====
Integrated		14.7
E&P		12.6
Distribution		1.3
Refining & Marketing		0.5
Subtotal Traditional Energy:		29.1
Energy Transition:
Electrification		9.8
Energy Efficiency		6.6
Transport		4.6
Renewables		4.3
Subtotal Energy Transition:		25.6
Net Current Liabilities		-2.2
		----
		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 11.3% of the Company’s net asset value.
Ten Largest Investments
Company			Region of Risk						% Total Assets
Vale			Latin America
Equity									4.3
Bond									1.2
Glencore			Global						5.0
Exxon Mobil			Global						4.7
BHP			Global						4.3
Teck Resources			Global						3.8
First Quantum Minerals			Global
Equity									2.1
Bond									1.4
Shell			Global						3.4
NextEra Energy			United States						3.0
BP			Global						2.9
Canadian Natural Resources			Canada						2.7
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 2.5% during the month of March (in GBP terms). Stock markets rose during the month that saw large swings in interest rate and growth expectations. The failure of Silicon Valley Bank in US, a large banking partner for earlier stage technology companies and private companies, contributed to heightened market volatility. In Europe the decision to combine UBS and Credit Suisse further added to uncertainty. The Fed hiked interest rates by 25bps, and this shift in interest rate expectations contributed towards a rebound in equity markets, with the MSCI ACWI TR Index rising by 2.8%. Within the energy sector, an apparent de-risking of energy positions, with a potentially new headwind to growth in the form of tighter financial conditions, contributed to a fall in the oil price and energy stocks. The price moves did not appear to be driven by fundamentals with little evidence of weakness in physical demand. After month end, OPEC announced a cut to production targets of 1 million bpd, which was a surprise, but was in line with prior proactive action in October 2022 where OPEC acted to defend the oil price. OPEC no longer sees such a threat from US shale oil production of undermining their control if they cut production early to support the oil price. Against this backdrop, Brent and WTI (West Texas Intermediate) oil prices fell by 4.8% and 1.7%, ending the month at $79/bbl and $76/bbl respectively. Within the mining sector, there have been positive signs that Chinese demand will pull through, such as higher steel production rates and improved economic indicators such as their Manufacturing PMI, which came in at 51.6. Market concerns about increasing risks for another financial crisis and expectations for a lower rate hike supported the gold price, which rose by 8.2%. Other mined commodity prices were also up due to positive signs on China’s reopening, including copper and iron ore (62% fe) which rose by 0.6% and 0.8% respectively. Within the energy transition theme, more details emerged around the European Green Industrial Plan, which aims to ensure domestic manufacturing capacity related to clean tech and is partly a response to the US Inflation Reduction Act. Within the energy transition theme, more details emerged around the European Green Industrial Plan, which aims to ensure domestic manufacturing capacity related to clean tech and is partly a response to the US Inflation Reduction Act. At least 40% of the EU’s low-carbon technologies, ranging from solar panels to heat pumps, will need to be made within EU borders by 2030 under the newly proposed plans. 27 April 2023
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.