February 15, 2022
Wigton Windfarm Limited, for the nine months ended December 31, 2021, reported sales of $1.58 billion, a 19% decrease on the $1.94 billion reported in the prior year. Revenue for the quarter decreased by 36% to $367.45 million (2020: $578.60 million). WIG indicated, “The nine months period, April to December 2021, saw an overall reduction of 53.1% in net profit. This decrease was a result of equipment maintenance cost, lower levels of production which impacted sales revenue and the impact of the contractual rate reduction for Wigton Phase II.”
WIG also noted that, “the average plant availability rate was approximately 88.9%, during the nine months reporting period. This was below the projected target of 94.3 because of wind turbines being out of operation during the period to facilitate major maintenance activities.”
Cost of sales went up 3% to close the period at $631.08 million versus $613.96 million booked in the previous comparable period.
Gross profit decreased to total $945.57 million (2020: $1.33 billion). While, for the quarter, gross profit amounted to $154.37 million (2020: $377.46 million).
Other income amounted to $212.97 million, a 63%% gain when compared to $130.90 million in the same period last year. General administrative expenses increased for the period amounting to $443.14 million relative to $296.20 million documented in the same period in the previous year.
Consequently, operating profit decreased 38%, closing the period under review at $715.40 million (2020: $1.16 billion). While, for the quarter, operating profit amounted to $163.90 million (2020: $305.43 million).
Finance expense decreased from $384.59 million in 2020 to $350.27 million in 2021.
As such, profit before taxation fell by 53% to close at $365.13 million (2020: $778.49 million). After taxation of $87.63 million (2020: $186.84 million), net profit for the period totaled $277.50 million (2020: $591.65 million). Net profit for the quarter closed at $35.52 million relative to 135.90 in the similar period last year.
Earnings per share (EPS) was $0.0025 (2020: $0.054). EPS for the quarter amounted to $0.003 (2020: EPS of $0.012). The twelve-month trailing EPS amounted to $0.044. The number of shares used in the calculations is 11,000,000,000. WIG stock price closed the trading period on February 14, 2022 at $0.55 with a corresponding P/E of 12.64 times.
Balance Sheet Highlights:
As at December 31, 2021, Wigton’s total asset base went up by 5% amounting to $11.20 billion (2020: $10.62 billion). The increase was as a result of increases in ‘Cash and Deposits’ which closed at $4.05 billion (2020: $3.16 billion). However, the increase was partially tempered by a decline in ‘Property, Plant & Equipment’, which closed the period $6.61 billion (2020: $7.02 billion).
Shareholders’ Equity amounted to $4.30 billion relative to $4.02 billion in 2020, resulting in a book value per share of $0.39 relative to $0.37 in 2020.
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