Sri Lanka’s WindForce PLC EBITDA up 87% reaching Rs. 1.95 billion for first quarter
The Morning: WindForce PLC reported a 87% surge in EBITDA (Earnings before interest, taxes, depreciation, and amortisation), reaching Rs. 1.95 billion, for the first quarter of the 2024/25 fiscal year.
This is a major leap from Rs. 1 billion in the same period last year.
The group’s consolidated revenue for the quarter ending June 30, was reported at Rs. 1.56 billion, marking a 28% increase from Rs. 1.22 billion in the previous year.
Net profits also climbed 27% to Rs. 652 million, up from Rs. 514 billion recorded in the first quarter of last year.
This strong financial performance was driven by the successful commissioning of the Hiruras 15 MW wind power plant in June/July 2023, which enhanced WindForce’s production capacity and revenue streams.
The wind sector reported a 37% revenue increase.
The hydro sector also delivered impressive results, with a 67% rise in electricity generation revenue, bolstered by the inclusion of the Mahoma plant as a subsidiary from January 2024, adding an extra Rs. 74 million to the group’s earnings.
OSL take:
The impressive growth and profits recorded by Windforce is a clear indication of the growing business potential in the renewable energy generation sector. With Sri Lanka on a growth path with a target of becoming a hub in the South Asian region, the growing demand for power has resulted in the expansion of business/investment opportunities in the country’s power industry, especially in the renewable energy generation sector. Sri Lanka’s policy of increasing the renewable energy component to 70% of the country’s total power mix and the restructuring of the local power sector while introducing many incentive schemes, have all helped boost the business/investment opportunities in the renewable energy generation sector. With the steady growth in the local renewable energy generation business, foreign businesses/investors could explore the expanding opportunities in the sector while also looking at forming collaborations with local businesses engaged in the renewable energy generation sector with the aim of further expansion. The growing business potential in Sri Lanka’s renewable energy sector has already attracted the attention of foreign businesses like India’s Adani Green Energy, which also portrays the increasing interest in the sector.