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BlackRock Energy and Resources Income Trust Plc - Portfolio Update
BLACKROCK ENERGY AND RESOURCES INCOME TRUST plc (LEI:54930040ALEAVPMMDC31)
All information is at 30 June 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 1.7% 9.4% 20.9% 54.5% 35.3% 84.4%
Share price -9.4% 1.9% 19.7% 73.1% 29.9% 86.2%
Sources: Datastream, BlackRock
At month end
Net asset value – capital only: 100.99p
Net asset value cum income1: 101.45p
Share price: 91.90p
Discount to NAV (cum income): 9.4%
Net yield: 4.4%
Gearing - cum income: 6.2%
Total assets: £118.0m
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 0.46p.
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 46.2%
Traditional Energy 32.0%
Energy Transition                 23.5%
Net Current Liabilities           -1.7%
-----
100.0%
=====
Sector Analysis % Total Assets^ Country Analysis % Total Assets^
Mining:
Diversified 26.2 Global 54.9
Copper 4.7 USA 16.3
Industrial Minerals 4.5 Canada 12.0
Gold 3.8 Latin America 10.8
Steel 2.6 Australia 2.2
Diamonds 1.3 Germany 1.9
Iron 1.3 South Africa 1.9
Platinum 1.2 France 0.8
Nickel 0.6 Ireland 0.7
Subtotal Mining: 46.2 Africa 0.2
Net Current Liabilities^ -1.7
Traditional Energy:
E&P 14.4 -----
Integrated 12.2 100.00
Refining & Marketing 3.8 =====
Distribution 1.2
Oil Services 0.4
Subtotal Traditional Energy: 32.0
Energy Transition:
Electrification 8.3
Energy Efficiency 7.1
Renewables 6.4
Transport 0.9
Storage 0.8
Subtotal Energy Transition: 23.5
Net Current Liabilities^ -1.7
----
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 4.4% of the Company’s net asset value.
Ten Largest Investments
Company Region of Risk % Total Assets
Vale Latin America
    Equity 7.8
    Bond 3.0
Rio Tinto Global 4.2
BHP Global 4.0
Chevron Global 3.9
Glencore Global
Equity 3.9
Option -0.1
Anglo American Global 3.5
ConocoPhillips Global 3.1
Vestas Wind Global 3.0
Enel Global 3.0
Canadian Natural Resources Canadian 2.5
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 1.7% during the month of June (in Sterling terms with dividends reinvested).

The mining sector saw a pullback in June, underperforming broader equity markets, with the MSCI ACWI TR Index returning a modest +1.2%. Mined commodity performance was varied, with copper falling 8.8% and iron ore (62% fe) rising 7.5% and reaching an all-time high during the month.  However, economic data from China remained resilient, with its manufacturing Purchase Manager Index (PMI) at 51.3, and robust demand in the US and Europe helped support prices. The period also saw a sell-off across precious metals, with gold falling 7.4%. Turning to the companies, following its share buyback program Brazilian miner Vale announced a special dividend in June, based on expected profits for the current year.

Traditional energy stocks continued to rise modestly over the month, whilst oil prices increased as economic data continued to suggest global economic recovery and stronger activity levels. Despite concerns over the spread of the delta variant of COVID-19, vaccinations continued and allowed movement restrictions to be eased. Within the energy sector, underlying oil demand appeared robust with a further drawdown in barrels held in storage. Negotiations for an Iranian nuclear deal continued without breakthrough, whilst market expectations are for an agreed additional production increase from OPEC given the continuing strength in oil demand. Against this backdrop, Brent and WTI (West Texas Intermediate) increased by 10.9% and 11.1%, ending the month at $77/bbl and $75/bbl respectively, whilst natural gas prices increased 25%.

Within the energy transition sector, the G7 countries committed to support development and deployment of renewable energy and to promote sustainable mobility and reduce greenhouse gas emissions from the transport sector. At a national level, the German government proposed an increase in renewables targets. Spain proposed a windfall tax on profits linked to higher carbon prices impacting nuclear and hydroelectric plants, whilst France increased taxation on solar power.

22 July 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.