Panasian Power sees strong top and bottom line growth in 1Q
Renewable energy developer Panasian Power PLC saw both its top and bottom lines growing significantly during the Apriljune quarter (1Q19) amid positive contributions from its mini hydro projects and first time solar power income.
The company reported earnings of 18 cents a share or Rs.88 million for 1Q19, compared to earnings of 01 cent or Rs.5.6 million reported for the same period, last year.
The company’s revenue for the period under review more than doubled to Rs.177.7 million from a year ago. The operating profit for the quarter increased to Rs.138.7 million, from Rs.40.3 million during the same period last year.
“These stellar results were attributed to contributions from the Padiyapelella, Manelwala and Rathganga mini hydropower plants, both of which have Standardised Power Purchase Agreements with the Ceylon Electricity Board to supply all of the energy generated to the national grid.
The period under review also saw Panasian Power record its first solar power income. The company was also able to increase margins during the quarter by exercising prudent cost control practices, which brought down direct expenses and finance costs,” an earnings release from Panasian Power said.
This resulted in direct expenses of Rs.19.5 million, compared to Rs.22.9 million during the same period last year and a finance cost of Rs.25.8 million, compared to Rs.33.6 million during the same period last year.
Commenting on the strong performance, Panasian Power CEO Dr. Prathap Ramanujam said he fully expect these figures to improve further over time as power generation increases at the plants and with greater contribution coming from our solar power investments.
“With several solar projects in the pipeline, as part of our continued energy diversification plans and as we continue to explore new opportunities both here and abroad, we are that much closer to realizing our ultimate goal of securing a clean energy future,” he said.
Speaking about the company’s future, Panasian Power General Manager/ Executive Director Pathmanatha Poddiwala said the company has already begun construction of another 900 Kw rooftop solar plant in Kelaniya and a 1 MW ground solar plant will begin construction during the second quarter of this financial year.
“Furthermore, we have entered into an agreement to build and operate a 2.9 MW rooftop solar plant in the Kurenegala District, which is expected to be commissioned during the third quarter of this financial year,” he said.
On the back of strong yearend results, Panasian Power issued a dividend of Rs 0.13 per share in July 2018. As of June 30, the net asset value per share stood at Rs.2.79, up from Rs.2.45 during the same period in 2017.
Panasian Power PLC, which 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.