Panasian Power continues success streak with 452% growth in PAT during 1H 2018

Monday, 19 November 2018 00:13 - - {{hitsCtrl.values.hits}}

Panasian Power PLC (PAP.N), one of Sri Lanka’s leading green energy solutions providers, posted a consolidated net profit of Rs. 54 million for the quarter and Rs. 153 million for the six months ending 30th September, 2018. This represents a 110% and 452% increase respectively over the corresponding period of the previous year. Furthermore, operating profit for the quarter increased to Rs. 74.7 million from Rs. 41.8 million during the same period the previous year. This represents a growth of 79% for the quarter and a total growth of 159% for the half year despite the increase in costs.

Panasian Power Chairman & Chief Executive Officer Dr Prathap Ramanujam

Major contributors to this result were the Padiyapelella mini hydropower plant and the Rathganga Mini Hydropower plant which contributed Rs. 93 million and Rs. 50 million respectively to the Group’s net profit during the period under review. In addition, the Manelwala mini hydropower plant too made significant contributions towards the growth in revenue during the quarter. The period under review also includes the Group’s diversified solar power income which was initiated in the previous quarter.

During this period the Group’s revenue increased by 137% compared to the previous six months once again due to major contributions from the Padiyapelella and the Rathganga mini hydropower plants. By exercising prudent cost control practices, the Group was able to reduce the finance cost by 9% to Rs. 45.5 million during the same period. Commenting on these strong results, Panasian Power Chief Executive Officer Dr. Prathap Ramanujam said: “We are pleased to once again post strong results thereby validating the confidence all our shareholders have in us. This continued success is only possible thanks to the calculated steps we took last year to diversify our income streams and implement vigilant cost control measures that have helped grow our bottom line. We have since gone from strength to strength and fully expect this trend to continue in the near term as we unveil and complete new hydro and solar projects that take our country closer to a clean, green energy future.”

Speaking about the company’s future, Dr. Prathap said: “We have commissioned an 800 Kw rooftop solar power project during the quarter and a 900 Kw rooftop solar plant in Kelaniya is in the final stage of construction. The latter will be connected to the grid during the third quarter of this financial year. These projects represent our continued commitment to diversification and we believe they will fuel our future growth.”

Furthermore, construction of a 3.5 MW rooftop solar project and a 1 MW ground solar project is currently in progress. Meanwhile pre-development work on a 5.4 MW hydro project and an 8 MW ground solar project are currently on schedule.

On the back of strong year end results Panasian Power issued a dividend of Rs. 0.13 per share in July 2018. As of 30 September the net asset value per share stood at Rs. 2.76 up from Rs. 2.47 during the same period in 2017.

Panasian Power PLC was incorporated in 2002 owns and operates mini hydropower plants and supplies electricity directly to the Ceylon Electricity Board.

In 2017 the company diversified into solar energy to meet its revised target of having an energy portfolio of 30MW by 2020.