Blackrock Energy & Resources Income Trust PLC

Net Asset Value • May 11, 2023

National Storage Mechanism | Additional information

BlackRock Energy and Resources Income Trust Plc - Portfolio Update

PR Newswire

London, May 11

BLACKROCK ENERGY AND RESOURCES INCOME TRUST plc (LEI:54930040ALEAVPMMDC31)
All information is at 30 April 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	-1.4%			-8.3%		0.0%			5.5%	142.2%		100.3%
Share price	-2.3%			-11.6%		1.7%			1.1%	179.9%		104.4%
Sources: Datastream, BlackRock
At month end
Net asset value – capital only:								130.90p
Net asset value cum income1:								131.39p
Share price:								127.00p
Discount to NAV (cum income):								3.3%
Net yield:								3.4%
Gearing - cum income:								9.2%
Total assets:								£178.1m
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 0.49p. 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		44.5%
Traditional Energy		31.3%
Energy Transition		25.7%
Net Current Liabilities		-1.5%
		-----
		100.0%
		\=====
Sector Analysis		% Total Assets^					Country Analysis				% Total Assets^
Mining:
Diversified		21.4					Global				61.1
Copper		9.9					USA				15.0
Industrial Minerals		4.1					Latin America				8.5
Aluminium		2.8					Canada				8.3
Steel		2.4					Germany				4.4
Nickel		1.8					Australia				2.6
Gold		1.1					Ireland				0.6
Uranium		0.9					Denmark				0.5
Platinum Group Metals		0.3					France				0.5
Tin		-0.2					Net Current Liabilities				-1.5
Subtotal Mining:		44.5									-----
											100.0
Traditional Energy:											\=====
Integrated		15.8
E&P		13.8
Distribution		1.3
Refining & Marketing		0.4
Subtotal Traditional Energy:		31.3
Energy Transition:
Electrification		10.4
Energy Efficiency		6.9
Transport		4.2
Renewables		4.2
Subtotal Energy Transition:		25.7
Net Current Liabilities		-1.5
		----
		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 7.6% of the Company’s net asset value.
Ten Largest Investments
Company			Region of Risk						% Total Assets
Glencore			Global						5.3
Exxon Mobil			Global						5.2
Vale			Latin America
Equity									4.0
Bond									1.1
Teck Resources			Global						4.5
BHP			Global						4.1
Shell			Global						3.7
First Quantum Minerals			Global
Equity									1.9
Bond									1.5
BP			Global						3.2
NextEra Energy			United States						3.1
Canadian Natural Resources			Canada						3.0
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 -1.4% during the month of April (in GBP terms). Global economic data released in April provided a mixed message. The Chinese economy continued to rebound, US economic growth data for Q1 suggested a slowdown, growing 1.1%, compared to 2.6% for Q4 2022, whilst inflation continued to ease, it remained well above target in the US, EU and UK. The US Fed raised interest rates by a further 0.25%. There were renewed concerns over US regional banks and the potential tightening impact on lending conditions.   Energy equities were supported by positive oil prices over the month. OPEC’s action at the beginning of the month to pro-actively announce a reduction to production targets suggests OPEC no longer sees a threat from US shale oil production of undermining their control if they cut production early to support the oil price. Europe has ended the winter period with natural gas storage levels higher than expected at 56%, which is well above the 5 year average of 34% and viewed as reducing pressure on natural gas prices over the summer period. The relative weakness in oil and gas prices in recent months has contributed to the US rig count falling from 621 rigs at the start of the year to 591, suggesting that capital discipline is being maintained by producers. The US Henry Hub natural gas prices was rose 10.7% during the month to $2.32/mmbtu.  Brent and WTI (West Texas Intermediate) oil prices rose by 2.7% and 1.4%, ending the month at $81/bbl and $46/bbl respectively. April was a challenging month for the mining sector as economic data from China was softer than expected. China’s manufacturing PMI, for example, fell to 49.5, down from 50.0 in March. Industrial mined commodity prices were weak, with the copper price falling by 4.7% and the iron ore (62%fe) price sliding down by 17.3%. China also announced plans to cap 2023 domestic steel production (for which iron ore is a key input) at 2022 levels to limit potential oversupply and contain carbon emissions. Battery minerals prices also continued to fall sharply, with lithium prices in China falling by 21.7%, on faltering sentiment surrounding electric vehicle demand. Further weakness in the US dollar helped precious metals performed strongly, however, with gold, silver and platinum prices rising by 0.5%, 3.8% and 9.5% respectively. Lastly, Q1 production results were reported during the month and were generally poor, highlighting ongoing operational issues faced by many of the miners. Within the energy transition theme, the IEA released two reports, one outlining how energy policy is evolving/needs to evolve to support demand switching towards clean energy technologies. The IEA also released its Global EV Outlook 2023, with an expectation that EV sales continue to surge and reach a new high in 2023. In the US, California’s NEM 3.0 solar policy replaced its existing policy with one which revises the incentive structure and favours adding storage capacity in combination with solar panels. 11 May 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.