LVL Energy Fund 6-mth profit exceeds profit for full previous year
View(s):LVL Energy Fund PLC with an operational footprint covering Sri Lanka, Bangladesh and Nepal, has recorded a strong financial performance in the first half of the current financial year, which is reflected in the company’s provisional financial results for the 6-month period ending September.
“In a remarkable achievement, its 6-month profit of Rs.461 million was higher than the profit of Rs.439 million for the entire financial year ending March 2018. Moreover, the 6-month profit of Rs.461 million marked a growth of 33 per cent over Rs.346 million recorded for the comparable period last financial year,” the company said in a media release.
LVL Energy Fund PLC declared the largest interim dividend of 34 cents per share as its first interim dividend for FY 2018/19. The total cash outlay is Rs.198 million compared to Rs.111 million paid as first interim dividend last year. Profit attributable to equity holders of the company for the period was Rs.435 million compared to Rs.318 million in the previous year, which reflects an increase of 37 per cent.
Commenting on the company’s notable performance, Sumith Arangala – CEO of LVL Energy Fund PLC said: “We are heartened by the outstanding financial results for the first half of the year by the company. During the period under review, we exceeded the profits recorded for the financial year as a whole in 2017/18, which is highly commendable. This performance was earned by leveraging on our strengths in the power and energy sector, further supported by our commitment to build energy security for the nation. LVL Energy Fund PLC is well entrenched in South Asia and will continue to power its growth further.”
The group recorded a profit before interest and tax of Rs.574 million for the period compared to Rs.467 million in the corresponding period last year, reflecting an increase of 23 per cent. Finance cost for the period was Rs.68 million compared to Rs.100 million last year. The tax charge however was higher at Rs.45 million compared to Rs.22 million last year. Accordingly, profit after interest and tax for the period was Rs.461 million compared to Rs.346 million last year, an increase of 33 per cent.
Group income from subsidiary companies for the period increased by Rs.26 million to Rs.215 million from Rs.189 million in the previous year whilst operating expenses increased to Rs.74 million from Rs.66 million in the previous year mainly due to increase in operating expenses of subsidiary companies in line with their increased income. Operating profit for the period increased to Rs.180 million from Rs.127 million in the previous year.
“The company’s hydro power plants performed strongly under favourable weather conditions during the period compared to the corresponding period last year, whilst its thermal power plants in Bangladesh also recorded better performance during the period compared to the previous year.
The share of profit from Bambabarapana hydro power plant that commenced commercial operation in the last quarter of the previous financial year also contributed towards a higher group profit for the period. Power generation of wind power plants during the period was less than in the previous year due to less favourable weather conditions,” the company said.
LVL Energy Fund is a subsidiary of Lanka Ventures PLC. It operates seven hydro power projects in Sri Lanka with a total capacity of 19.4 MW and two wind power projects with an installed capacity of 15.3 MW in Kalpitiya.