N-Q 1 e603751_nq-utiltelecom.txt UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-Q QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY Investment Company Act file number 811-06180 Name of Fund: BlackRock Utilities & Telecommunications Fund, Inc. Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809 Name and address of agent for service: Donald C. Burke, Chief Executive Officer, BlackRock Utilities & Telecommunications Fund, Inc., 800 Scudders Mill Road, Plainsboro, NJ 08536. Mailing address: P.O. Box 9011, Princeton, NJ 08543-9011 Registrant's telephone number, including area code: (800) 441-7762 Date of fiscal year end: 11/30/2008 Date of reporting period: 12/01/2007 - 02/29/2008 Item 1 - Schedule of Investments BlackRock Utilities and Telecommunications Fund, Inc. Schedule of Investments as of February 29, 2008 (Unaudited) (Percentages shown are based on Net Assets)
Country Industry Shares Common Stocks Value ---------------------------------------------------------------------------------------------------------------------------------- Brazil - 3.9% Diversified Telecommunication 25,900 GVT Holding SA (a) $ 566,519 Services - 0.4% ---------------------------------------------------------------------------------------------------------------- Electric Utilities - 1.5% 15,700 CPFL Energia SA (b) 1,008,568 47,000 Cia Energetica de Minas Gerais (b) 894,410 33,200 EDP - Energias do Brasil SA 511,419 ------------ 2,414,397 ---------------------------------------------------------------------------------------------------------------- Independent Power Producers & 60,000 Cia Energetica de Sao Paulo Energy Traders - 1.1% (Preference Shares) (a) 1,703,034 ---------------------------------------------------------------------------------------------------------------- Water Utilities - 0.6% 20,800 Cia de Saneamento Basico do Estado de Sao Paulo 494,447 314 Cia Saneamento (Preference Shares) (a)(e) 23,173 32,000 Companhia de Saneamento de Minas Gerais 487,257 ------------ 1,004,877 ---------------------------------------------------------------------------------------------------------------- Wireless Telecommunication 13,000 Tim Participacoes SA (b) 533,260 Services - 0.3% ---------------------------------------------------------------------------------------------------------------------------------- Total Common Stocks in Brazil 6,222,087 ---------------------------------------------------------------------------------------------------------------------------------- Canada - 1.7% Diversified Telecommunication 30,000 Manitoba Telecom Services, Inc. 1,260,655 Services - 1.3% 16,500 TELUS Corp. (Non-Voting Shares) 737,953 ------------ 1,998,608 ---------------------------------------------------------------------------------------------------------------- Wireless Telecommunication 17,000 Rogers Communications, Inc. Class B 672,520 Services - 0.4% ---------------------------------------------------------------------------------------------------------------------------------- Total Common Stocks in Canada 2,671,128 ---------------------------------------------------------------------------------------------------------------------------------- Cayman Energy Equipment & 3,218 Transocean, Inc. 452,161 Islands - 0.3% Services - 0.3% ---------------------------------------------------------------------------------------------------------------------------------- Total Common Stocks in the Cayman Islands 452,161 ---------------------------------------------------------------------------------------------------------------------------------- Czech Republic Electric Utilities - 0.8% 17,700 CEZ AS 1,296,833 - 0.8% ---------------------------------------------------------------------------------------------------------------------------------- Total Common Stocks in the Czech Republic 1,296,833 ---------------------------------------------------------------------------------------------------------------------------------- Finland - 0.7% Electric Utilities - 0.7% 28,100 Fortum Oyj 1,173,243 ---------------------------------------------------------------------------------------------------------------------------------- Total Common Stocks in Finland 1,173,243 ---------------------------------------------------------------------------------------------------------------------------------- France - 4.5% Diversified Telecommunication 24,300 France Telecom SA 815,724 Services - 1.2% 22,500 Neuf Cegetel 1,189,341 ------------ 2,005,065 ---------------------------------------------------------------------------------------------------------------- Electric Utilities - 0.8% 14,500 Electricite de France SA 1,352,407 ---------------------------------------------------------------------------------------------------------------- Multi-Utilities - 2.5% 33,200 Suez SA 2,110,609 21,150 Veolia Environnement SA 1,881,781 ------------ 3,992,390 ---------------------------------------------------------------------------------------------------------------- Total Common Stocks in France 7,349,862 ---------------------------------------------------------------------------------------------------------------------------------- Germany - 2.2% Electric Utilities - 2.1% 18,300 E.ON AG 3,439,337 ---------------------------------------------------------------------------------------------------------------- Multi-Utilities - 0.1% 1,400 RWE AG 169,321 ---------------------------------------------------------------------------------------------------------------- Total Common Stocks in Germany 3,608,658 ---------------------------------------------------------------------------------------------------------------------------------- Greece - 0.5% Diversified Telecommunication 26,500 Hellenic Telecommunications Organization SA 736,117 Services - 0.5% ---------------------------------------------------------------------------------------------------------------- Total Common Stocks in Greece 736,117 ---------------------------------------------------------------------------------------------------------------------------------- Italy - 0.5% Electric Utilities - 0.5% 79,000 Enel SpA 852,434 ---------------------------------------------------------------------------------------------------------------- Total Common Stocks in Italy 852,434 ---------------------------------------------------------------------------------------------------------------------------------- Luxembourg Wireless Telecommunication 9,200 Millicom International Cellular SA (a) 1,016,600 - 0.6% Services - 0.6% ---------------------------------------------------------------------------------------------------------------- Total Common Stocks in Luxembourg 1,016,600 ---------------------------------------------------------------------------------------------------------------------------------- Mexico - 1.8% Wireless Telecommunication 49,000 America Movil, SA de CV (b) 2,962,540 Services - 1.8% ---------------------------------------------------------------------------------------------------------------- Total Common Stocks in Mexico 2,962,540 ----------------------------------------------------------------------------------------------------------------------------------
BlackRock Utilities and Telecommunications Fund, Inc. Schedule of Investments as of February 29, 2008 (Unaudited) (Percentages shown are based on Net Assets)
Country Industry Shares Common Stocks Value ---------------------------------------------------------------------------------------------------------------------------------- Netherlands Diversified Telecommunication 42,000 Koninklijke KPN NV $ 792,876 - 0.5% Services - 0.5% ---------------------------------------------------------------------------------------------------------------- Total Common Stocks in the Netherlands 792,876 ---------------------------------------------------------------------------------------------------------------------------------- Norway - 0.6% Diversified Telecommunication 49,600 Telenor ASA 1,015,642 Services - 0.6% ---------------------------------------------------------------------------------------------------------------- Total Common Stocks in Norway 1,015,642 ---------------------------------------------------------------------------------------------------------------------------------- Portugal - 0.3% Electric Utilities - 0.3% 92,000 Energias de Portugal SA 537,993 ---------------------------------------------------------------------------------------------------------------- Total Common Stocks in Portugal 537,993 ---------------------------------------------------------------------------------------------------------------------------------- Spain - 3.6% Diversified Telecommunication 79,448 Telefonica SA 2,298,940 Services - 1.4% ---------------------------------------------------------------------------------------------------------------- Electric Utilities - 1.8% 220,300 Iberdrola Renovables (a) 1,371,231 106,000 Iberdrola SA 1,530,930 ------------ 2,902,161 ---------------------------------------------------------------------------------------------------------------- Electrical Equipment - 0.4% 14,600 Gamesa Corp. Tecnologica SA 594,684 ---------------------------------------------------------------------------------------------------------------- Total Common Stocks in Spain 5,795,785 ---------------------------------------------------------------------------------------------------------------------------------- Sweden - 0.5% Diversified Telecommunication 48,100 Tele2 AB 845,442 Services - 0.5% ---------------------------------------------------------------------------------------------------------------- Total Common Stocks in Sweden 845,442 ---------------------------------------------------------------------------------------------------------------------------------- Switzerland Diversified Telecommunication 1,900 Swisscom AG 722,641 - 0.4% Services - 0.4% ---------------------------------------------------------------------------------------------------------------- Total Common Stocks in Switzerland 722,641 ---------------------------------------------------------------------------------------------------------------------------------- United Kingdom Electric Utilities - 0.5% 28,100 Scottish & Southern Energy Plc 821,662 - 4.7% ---------------------------------------------------------------------------------------------------------------- Independent Power Producers & 196,900 International Power Plc 1,479,273 Energy Traders - 0.9% ---------------------------------------------------------------------------------------------------------------- Multi-Utilities - 1.2% 133,600 Centrica Plc 852,997 69,918 National Grid Plc 1,013,799 ------------ 1,866,796 ---------------------------------------------------------------------------------------------------------------- Water Utilities - 0.4% 100,000 Northumbrian Water Group Plc 693,063 ---------------------------------------------------------------------------------------------------------------- Wireless Telecommunication 84,512 Vodafone Group Plc (b) 2,723,822 Services - 1.7% ---------------------------------------------------------------------------------------------------------------- Total Common Stocks in the United Kingdom 7,584,616 ---------------------------------------------------------------------------------------------------------------------------------- United States Construction & Engineering 30,575 Quanta Services, Inc. (a) 730,131 - 67.9% - 0.5% ---------------------------------------------------------------------------------------------------------------- Diversified Telecommunication 181,362 AT&T Inc. 6,316,838 Services - 8.0% 62,400 Citizens Communications Co. 670,176 37,000 Time Warner Telecom, Inc. Class A (a) 589,780 135,900 Verizon Communications, Inc. 4,935,888 39,141 Windstream Corp. 460,298 ------------ 12,972,980 ---------------------------------------------------------------------------------------------------------------- Electric Utilities - 29.6% 50,800 Allegheny Energy, Inc. 2,574,036 44,700 American Electric Power Co., Inc. 1,829,124 75,000 DPL, Inc. 1,913,250 177,532 Duke Energy Corp. 3,113,911 66,700 Edison International 3,294,980 51,300 Entergy Corp. 5,270,562 84,500 Exelon Corp. 6,324,825 75,500 FPL Group, Inc. 4,551,895 51,900 FirstEnergy Corp. 3,507,921 49,500 ITC Holdings Corp. 2,638,350 60,900 Mirant Corp. (a) 2,253,300 30,700 Northeast Utilities Inc. 778,859 101,800 PPL Corp. 4,619,684 30,500 Pepco Holdings, Inc. 770,735
BlackRock Utilities and Telecommunications Fund, Inc. Schedule of Investments as of February 29, 2008 (Unaudited) (Percentages shown are based on Net Assets)
Country Industry Shares Common Stocks Value ---------------------------------------------------------------------------------------------------------------------------------- 50,700 Reliant Energy, Inc. (a) $ 1,155,960 93,600 The Southern Co. 3,232,008 ------------ 47,829,400 ---------------------------------------------------------------------------------------------------------------- Electronic Equipment & 6,800 Itron, Inc. (a) 648,244 Instruments - 0.4% ---------------------------------------------------------------------------------------------------------------- Gas Utilities - 3.3% 12,000 Energen Corp. 720,000 25,200 Equitable Resources, Inc. 1,552,824 13,600 New Jersey Resources Corp. 625,736 30,500 Questar Corp. 1,685,125 13,316 Spectra Energy Corp. 307,733 19,000 UGI Corp. 486,590 ------------ 5,378,008 ---------------------------------------------------------------------------------------------------------------- Independent Power Producers & 68,300 The AES Corp. (a) 1,228,034 Energy Traders - 8.0% 54,500 Constellation Energy Group, Inc. 4,815,075 78,964 Dynegy, Inc. Class A (a) 584,334 124,800 NRG Energy, Inc. (a) 5,150,496 25,300 Ormat Technologies, Inc. 1,104,598 ------------ 12,882,537 ---------------------------------------------------------------------------------------------------------------- Multi-Utilities - 12.0% 10,000 Ameren Corp. 427,000 132,500 CMS Energy Corp. 1,906,675 26,000 Consolidated Edison, Inc. 1,063,140 17,600 DTE Energy Co. 700,656 68,474 Dominion Resources, Inc. 2,734,851 41,700 NSTAR 1,288,530 63,100 PG&E Corp. 2,376,346 128,000 Public Service Enterprise Group, Inc. 5,644,800 19,900 Sempra Energy 1,057,287 55,000 TECO Energy, Inc. 823,900 19,100 Wisconsin Energy Corp. 833,142 29,000 Xcel Energy, Inc. 574,780 ------------ 19,431,107 ---------------------------------------------------------------------------------------------------------------- Oil, Gas & Consumable Fuels 13,500 Devon Energy Corp. 1,386,720 - 4.6% 12,000 EOG Resources, Inc. 1,427,880 18,900 Range Resources Corp. 1,156,302 21,700 Southwestern Energy Co. (a) 1,415,491 58,800 Williams Cos., Inc. 2,117,976 ------------ 7,504,369 ---------------------------------------------------------------------------------------------------------------- Water Utilities - 0.2% 3,400 American States Water Co. 110,670 4,800 California Water Service Group 180,576 ------------ 291,246 ---------------------------------------------------------------------------------------------------------------- Wireless Telecommunication 22,700 American Tower Corp. Class A (a) 872,588 Services - 1.3% 37,700 SBA Communications Corp. Class A (a) 1,170,585 ------------ 2,043,173 ---------------------------------------------------------------------------------------------------------------- Total Common Stocks in the United States 109,711,195 ---------------------------------------------------------------------------------------------------------------------------------- Total Common Stocks (Cost - $99,995,208) - 96.0% 155,347,853 ---------------------------------------------------------------------------------------------------------------------------------- Par (000) Trust Preferreds ---------------------------------------------------------------------------------------------------------------------------------- United States Independent Power Producers & $ 1,092 AES Trust III, 6.75% due 10/15/2029 1,025,514 - 0.6% Energy Traders - 0.6% ---------------------------------------------------------------------------------------------------------------- Total Trust Preferreds (Cost - $671,038) - 0.6% 1,025,514 ----------------------------------------------------------------------------------------------------------------------------------
BlackRock Utilities and Telecommunications Fund, Inc. Schedule of Investments as of February 29, 2008 (Unaudited) (Percentages shown are based on Net Assets)
Beneficial Interest (000) Short-Term Securities Value ---------------------------------------------------------------------------------------------------------------------------------- $ 4,758 BlackRock Liquidity Series, LLC Cash Sweep Series, 3.76% (c)(d) $ 4,757,566 ---------------------------------------------------------------------------------------------------------------------------------- Total Short-Term Securities (Cost - $4,757,566) - 3.0% 4,757,566 ---------------------------------------------------------------------------------------------------------------------------------- Total Investments (Cost - $105,423,812*) - 99.6% 161,130,933 Other Assets Less Liabilities - 0.4% 638,909 ------------ Net Assets - 100.0% $161,769,842 ============
* The cost and unrealized appreciation (depreciation) of investments as of February 29, 2008, as computed for federal income tax purposes, were as follows: Aggregate cost $ 105,423,812 ============= Gross unrealized appreciation $ 57,237,834 Gross unrealized depreciation (1,530,713) ------------- Net unrealized appreciation $ 55,707,121 ============= (a) Non-income producing security. (b) Depositary receipts. (c) Investments in companies considered to be an affiliate of the Fund, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as follows: -------------------------------------------------------------------------- Net Activity Interest Affiliate (000) Income -------------------------------------------------------------------------- BlackRock Liquidity Series, LLC Cash Sweep Series $ 716 $ 53,227 -------------------------------------------------------------------------- (d) Represents the current yield as of February 29, 2008. (e) Convertible security. o For Fund compliance purposes, the Fund's industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. This definition may not apply for purposes of this report, which may combine industry sub-classifications for reporting ease. BlackRock Utilities and Telecommunications Fund, Inc. Effective December 1, 2007, the BlackRock Utilities and Telecommunications Fund, Inc. (the "Fund") adopted FASB Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" ("FAS 157"). FAS 157 clarifies the definition of fair value, establishes a framework for measuring fair values and requires additional disclosures about the use of fair value measurements. FAS 157 establishes a hierarchy that classifies these inputs into the three broad levels listed below: o Level 1 - price quotations in active markets/exchanges for identical securities o Level 2 -other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, and default rates) or other market -corroborated inputs) o Level 3 - unobservable inputs based on the best information available in the circumstance, to the extent observable inputs are not available (including the Fund's own assumptions used in determining the fair value of investments) The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The following table summarizes the inputs used as of February 29, 2008 in determining the fair valuation of the Fund's investments: Investments in Other Financial Valuation Inputs Securities Instruments* -------------------------------------------------------------------------------- Level 1 $128,133,105 $ 0 Level 2 32,974,655 0 Level 3 23,173 0 -------------------------------------------------------------------------------- Total $161,130,933 $ 0 ================================================================================ *Other financial instruments are derivative instruments not reflected in the Schedule of Investments, such as futures, forwards and swap contracts, which are valued at the unrealized appreciation/depreciation on the investment. The following is a reconciliation of investments for unobservable inputs (Level 3) were used in determining fair value: -------------------------------------------------------------------------------- Investments in Other Financial Securities Instruments -------------------------------------------------------------------------------- Balance, as of November 30, 2007 $21,860 $ 0 Accrued discounts/premiums 0 0 Realized gain (loss) 0 0 Change in unrealized appreciation (depreciation) 1,313 0 Net purchases (sales) 0 0 Net transfers in/out of Level 3 0 0 -------------------------------------------------------------------------------- Balance, as of February 29, 2008 $23,173 $ 0 ================================================================================ Item 2 - Controls and Procedures 2(a) - The registrant's principal executive and principal financial officers or persons performing similar functions have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the "1940 Act")) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 15d-15(b) under the Securities Exchange Act of 1934, as amended. 2(b) - There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrant's last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting. Item 3 - Exhibits Certifications - Attached hereto Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. BlackRock Utilities & Telecommunications Fund, Inc. By: /s/ Donald C. Burke ---------------------------------- Donald C. Burke Chief Executive Officer (principal executive officer) of BlackRock Utilities & Telecommunications Fund, Inc. Date: April 23, 2008 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By: /s/ Donald C. Burke ---------------------------------- Donald C. Burke Chief Executive Officer (principal executive officer) of BlackRock Utilities & Telecommunications Fund, Inc. Date: April 23, 2008 By: /s/ Neal J. Andrews ---------------------------------- Neal J. Andrews Chief Financial Officer (principal financial officer) of BlackRock Utilities & Telecommunications Fund, Inc. Date: April 23, 2008