Vallibel Power Erathna generates over 21 MW as third plant starts

Vallibel Power Erathana Plc (VPE) said yesterday its third plant has begun commercial operations, bringing the total renewable energy production to over 21 MW.

The latest venture is Denawaka Ganga Mini Hydro Power Project in Ratnapura via VPE subsidiary Country Energy Ltd. Last month VPE added 4.6 MW by starting commercial operations of the Kiriwaneliya Mini Hydro Power project in Nuwara Eliya, whilst its first project Erathna produces 10 MW.  The combined power of these projects is 21.8 MW.

In the 2010/11 Annual Report, VPE Chairman Dhammika Perera said on completion of the Denawaka Ganga and Kiriwaneliya Hydro Power Projects with a combined capacity of 11.85 MW, the company envisages a significant increase in revenue, profits and dividends.

VPE is the largest, privately-owned hydropower company.

In 2010/11 the company achieved a profit after tax of Rs.446.3 million and revenue of Rs. 533.5 million. Revenue in the nine months to December 2011 fell 23% to Rs. 361 million as profits dipped 28% to Rs. 268 million. VPE began operations in 2004 and in 2009 acquired the entirety of the shares of Country Energy (Pvt) Ltd. for Rs. 200 million.

Stock price of VPE gained by 30 cents to close at Rs. 7.20 whilst it hit an intra-day high of Rs. 7.60 with 107,600 shares traded.