Vidullanka ups 9-month profit by 69% to Rs. 850 m

Tuesday, 15 February 2022 03:02 - - {{hitsCtrl.values.hits}}

Vidullanka PLC has reported a profit after tax of Rs. 850 million and a comprehensive income of Rs. 871 million for the nine months ended 31 December 2021, as per the interim financial statements published in the Colombo Stock Exchange.

The profit reported a 69% increase compared to the corresponding period of the previous year while the comprehensive income rose by around 85% for the same period in concern.

Vidullanka’s overseas segment, comprising both Muvumbe SHPP and Bukinda SHPP in Uganda, continues to be the best performing segment of the group as it contributed around Rs. 520 million in profits for the period. This contribution was a 76% increase as opposed to the comparative period of the previous year.

Accordingly, the group reported an overseas turnover of Rs. 1 billion, an 84% increase from the Rs. 574 million turnover of the previous period.

As such, the local hydropower segment also reported an increase in profitability by 90% to Rs. 377 million in profits from a revenue of Rs. 826 million.

The addition of ground-mounted solar power to the group’s plant portfolio also contributed a profit of Rs. 2 million for this nine-month period.

The supply and operations disruptions arising as consequences of the pandemic have resulted in Vidullanka’s Dendro power segment recording a loss of Rs. 39 million.

The group updated on the status of the utilisation of right issue proceeds, stating a utilisation of Rs. 175 million of the Rs. 253 million raised. These proceeds have been used in the development of rooftop and ground-mounted solar projects, as the company aims to further diversify its plant portfolio.

The company is expecting to add two more power plants under its umbrella, as the construction of a 10MW ground-mounted solar power plant in Vavunathivu and a 2MW ground-mounted solar power plant in Horana are currently underway.

The company also disclosed that its subsidiary, Muvumbe Hydro (U) Ltd., acquired a 30% equity stake for a consideration of $ 360,000 in Quantel Renewable Energy Ltd. (QRE) Malawi, which holds the license to build, own and operate the 50MWAC Bwengu Solar PV Power Plant in Northern Malawi, jointly developed with Frontier Energy, Denmark.

“The Bwengu Solar Power Plant is expected to commence operations in late 2023. The plant will add 50MW to the existing capacity of Vidullanka, making Malawi the third country the company has expanded to,” Vidullanka CEO Riyaz Sangani said.

Vidullanka PLC, a major player in the Sri Lankan renewable energy space, continues in line with its future growth endeavors, locally and overseas.

The company stands best positioned to capitalise on the opportunities arising from the Sri Lankan government’s initiatives to achieve the goal of generating 70% of energy via renewable sources. Renewable Energy is transforming into a very attractive and conducive industry with the ever-increasing global recognition and support for the inevitable need for cleaner and sustainable energy.