LVL Energy Fund 6-month profit exceeds previous full year profit

lvl-energy-ceo

Sumith Arangala – CEO, LVL Energy Fund Limited

LVL Energy Fund PLC with an operational footprint covering Sri Lanka, Bangladesh and Nepal, 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 ended 30th September 2018. In a remarkable achievement, its 6-month profit of LKR 461 million was higher than the profit of LKR 439 million for the entire financial year ended 31st March 2018. Moreover, the 6-month profit of LKR 461 million marked a growth of 33% over LKR 346 million recorded for the comparable period last financial year.

Demonstrating robust fundamentals, 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 LKR 198 million compared to LKR 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%.

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. I am confident that the company will end the 2018/19 year exceptionally well.”

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%. 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, signifying an increase of 33%.

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. Share of profit from equity accounted investees also increased to Rs. 394 million from Rs. 341 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.

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.

(Media Release)