Blackrock Energy and Res : BERI Annual Report

BlackRock

Energy and Resources Income Trust plc

Annual Report and Financial Statements 30 November 2022

Keeping in touch

We know how important it is to receive up-to-date information about the Company. To ensure that you are kept abreast of developments, please scan the QR code

to the right of this page to visit our website. If you have a smartphone, you can activate the QR code by opening the camera on your device and pointing it at the QR code. This will then open a link on the relevant section on the Company's website. By visiting our website, you will have the opportunity to sign up to our monthly newsletter which includes our latest factsheets, market commentary, as well as upcoming events and webinars. Information about how we process personal data is contained in our privacy policy available on our website.

General enquiries about the Company should be directed to the Company Secretary at: [e-mail].

Use this QR code to take you to the Company's website where you can sign up to monthly insights and factsheets.

Financial highlights

as at 30 November 2022

135.00p1

Ordinary share price

+44.8%2, 3

144.92p

Net asset value (NAV) per ordinary share

+44.5%2, 3

£194.7m

Net assets

+61.1%4

4.40p

Total dividends per share

+7.3%

3.3%3,5

Yield

The above financial highlights are as at 30 November 2022 and percentage comparisons are year-on-year against 30 November 2021.

1. Mid-market.
2. Share price and NAV performance are calculated in British Pound Sterling terms with dividends reinvested.
3. Alternative Performance Measures. See Glossary on pages 135 to 137.
4. The change in net assets reflects portfolio movements, the issue of shares and dividends paid during the year.
5. Yield based on dividends paid and declared for the year ended 30 November 2022 and share price as at 30 November 2022.

In many countries, the energy crisis has brought about a hardened resolve for an accelerated transition to a greater share of renewable energy. Legislation such as the Inflation Reduction Act in the USA is a demonstration of how willing governments are to incentivise private capital to be deployed in a large scale across multiple industries that need to transition to lower carbon footprints.

Section 1: Overview and performance 1

Why BlackRock Energy and Resources Income Trust plc?

Investment objective

The Company's objectives are to achieve an annual dividend target and, over the long term, capital growth by investing primarily in securities of companies operating in the mining and energy sectors.

Reasons to invest

Inflation sensitivity

A conviction-led approach to delivering an attractive income, with the potential to benefit from rising inflation from the best ideas in the mining, traditional energy and energy transition sectors. Unconstrained by market cap or region, the portfolio managers can invest in a wide range of opportunities.

Yield

The Company offers an attractive 3.3% dividend yield, as at 30 November 2022, as the managers focus on higher quality companies with strong cash flows that are good allocators of capital. The Company's global nature means that the large majority of its holdings generate earnings from businesses around the world.

Flexibility

The Company's flexibility means that the portfolio will adapt as the demand for mining, energy and energy transition related stocks changes. Over the long term, the team is able to change the portfolio makeup to select the best stocks to generate a sustainable income.

Opportunities

Mining and energy companies lie at the heart of the global economy. Without them, countries cannot grow and develop. A number of mining companies provide everything from materials

to build wind turbines to lithium for electric cars. These companies provide an important role in the long- term de-carbonisation of the global economy. Energy companies power our cars, our homes and drive economic development. On the sustainable energy side, the path to a lower carbon global economy is forecast to disrupt many industries and business models. However, this evolution is also expected to create remarkable opportunities. Investment in a specialist trust gives targeted exposure to these important companies, as it is positioned to capture such industry shifts and reap the benefits from this transition.

Expertise

The Company's assets are managed by BlackRock's Natural Resources Team. The team have been running Mining funds since 1993, Traditional Energy funds since 1999 and Energy Transition funds since 2001. The team undertakes extensive, proprietary, on- the-ground research to get to know the management of the companies in which they invest.

ESG Integration

Consideration of Environmental, Social and Corporate Governance (ESG) insights and data is integrated within the investment process. The Team's philosophy is that whilst ESG is only one of many factors that should be considered when making an investment, there is a positive correlation between good ESG and investment performance. Portfolio asset allocation reflects this, with a significant allocation to companies active in the energy transition sector. More details in respect of BlackRock's approach to ESG integration can be found on page 54 of the Annual Report. Investors should note that no ESG focused investment strategy or exclusionary screens have been adopted by the Company apart from the exclusion of companies that generate more than 25% of their revenues from thermal coal production.

A member of the Association of Investment Companies

Further details about the Company, including the latest annual and half-yearly financial reports, fact sheets and stock exchange announcements, are available on the website at www.blackrock.com/uk/beri

2 BlackRock Energy and Resources Income Trust plcl Annual Report and Financial Statements 30 November 2022

Contents

Section 1: Overview and performance

Financial highlights	1
Why BlackRock Energy and Resources Income Trust plc?	2
Performance record	4
Chairman's statement	5
Investment Manager's report	11

Section 2: Portfolio

Distribution of investments	24
Ten largest investments	26
Investments	28

Section 3: Governance

Governance structure	34
Directors' biographies	35
Strategic report	37
Directors' report	56
Directors' remuneration report	64
Corporate governance statement	70
Report of the audit and management engagement committee	75
Statement of Directors' responsibilities in respect of the annual report and
financial statements	79

Section 4: Financial statements

Independent auditor's report	82
Consolidated statement of comprehensive income	90
Consolidated statement of changes in equity	91
Parent company statement of changes in equity	92
Consolidated and parent company statements of financial position	93
Consolidated and parent company cash flow statements	94
Notes to the financial statements	95

Section 5: Additional information

Shareholder information	122
Analysis of ordinary shareholders	124
Historical analysis	125
Management & other service providers	126
AIFMD report on remuneration	127
Other AIFMD disclosures	131
Information to be disclosed in accordance with Listing Rule 9.8.4	132
Information to be disclosed in respect of investment in the People's Republic
of China (PRC) via the Stock Connect	133
Glossary	135

Section 6: Annual general meeting

Notice of annual general meeting	140
Share fraud warning	144

Section 1: Overview and performance 3