Sri Lanka Hemas hydro power profits up

May 25, 2010 (LBO) – Sri Lanka’s Hemas Power annual net profit rose six percent to 243.6 million rupees in the year to March 31, 2010 with profit from hydro plants rising and that from thermal power falling, a stock filing said.

Annual sales of the firm, which supplies power to state-run Ceylon Electricity Board, fell 41 percent to 2.9 billion rupees from the previous year.

Net profit from hydro power rose sharply, to 66.4 million rupees in the financial year ending March 31, 2010, from 15.5 million rupees the year before, the accounts showed.

Profit from thermal fell to 184 million rupees from 242 million rupees in the same period.

A note to the accounts of the firm, part of the Hemas group, said that because of the nature of its business, comparison of performances between quarters could sometimes be misleading.

“This is chiefly due to the influence our joint-venture Heladhanavi has on the company’s financial results. Its variable Operations and Maintenance (O&M) expenses are charged to the Income Statement only when such expenses are incurred.”

Hemas Power had said previously that the bulk of Heladhanavi’s variable operations and maintenance costs was charged during the first half of the year depressing the financial performances of the first half.

In the December quarter the company said its hydro-power plants did well, hitting peak output during the rainy period.