Sri Lanka power firm net up 9-pct on thermal sales

Aug 04, 2011 (LBO) – Sri Lanka’s Hemas Power said profits for the June 2011 quarter rose 9-pct to 86.8 million rupees with thermal revenues making up for hydro energy generation which was hit by low rainfall. Revenues rose 37 percent to 1,000 million rupees but generation costs rose 51 percent to 885 million rupees. Interest costs also fell 57 percent to 12 million rupees, interim accounts filed with the stock exchange showed.

The firm’s thermal plant, Heladanavi, saw a 59 percent profit increase but hydro power performance fell by 55 percent,

“Poor rainfall experienced in the country for the latter part of the quarter negatively impacted the hydropower sector results,” managing director Kishantha Nanayakkara told shareholders in the quarterly statement.

Colombo Stock Exchange has several listed hydro power firms whose earnings are likely to be hit by the current weak rainfall.

State-run grid operator Ceylon Electricity Board has been operating thermal plants flat out to avoid load shedding.

The firm said another hydro plant Magalaganga was on track and to be commissioned shortly.