LVL Energy Fund PLC records 30% hike in profit for 2018/2019
View(s):LVL Energy Fund PLC, a leading energy company and subsidiary of Lanka Ventures, surpassed its outstanding financial performance in the previous year, by posting Profit after interest and tax of Rs. 571 million in 2018/19, 30 per cent growth compared to Rs. 439 million in the previous financial year.
The company recorded Profit before interest and tax of Rs. 798 million for 2018/19, compared to Rs. 688 million in the previous year. Finance cost for the year under review amounted to Rs. 140 million compared to Rs. 191 million in the previous year. However, the tax charge was higher at Rs. 86 million in 2018/19 compared to Rs. 58 million in the previous year mainly owing to withholding tax on dividend, according to a company media release.
Group income from subsidiary companies for the year under review rose to Rs. 355 million as against Rs. 326 million in 2017/18 whilst operating expenses stood at Rs. 148 million in 2018/19 in contrast to Rs. 129 million in 2017/18. Operating profit for the year increased to Rs. 282 million from Rs. 220 million in the previous year. Share of profit from equity accounted investees also increased to Rs. 516 million in the current year from Rs. 468 million in the previous year.
Commenting on the company’s ‘impressive/ performance’ Sumith Arangala, CEO of LVL Energy Fund PLC said, “At LVL Energy Fund PLC, we have much to celebrate about, as we reveal our provisional financial results for the year ended 31st March 2019, which are perhaps one of the best in the energy sector. The strategic level of diversification we have achieved in our investment portfolio is one of the key pillars of this performance. The substantial investments made in projects are now bearing fruit, as is evident from the financials we have achieved in the 2018/19 financial year. Looking ahead to the next financial year, we are focused on expanding our geographical footprint in Sri Lanka, Bangladesh and Nepal, while remaining focused on repeating our successful performance this year.”
The contribution from hydro power plants showed an improvement during 2018/19 whilst thermal power plants in Bangladesh contributed a significantly higher profit 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 year. Power generation from wind power plants during the year under review was less than in the previous year and accordingly their contribution to group profit was lower.
The company has investments in seven operational hydro power projects in Sri Lanka with a total capacity of 19.4 MW, two operational wind power projects with an installed capacity of 15.3 Mega Watt (MW) in Kalpitiya and two operational thermal power plants of 104 MW in Bangladesh. It has also invested in one 10 MW hydro power project in Nepal and a 114 MW thermal power project in Bangladesh which are under construction.