MPCCEL reports six months net profit of US$63,775

Date: August 13, 2019

In United States dollars (except where it is indicated otherwise):

MPC Caribbean Clean Energy Limited (MPCCEL) for the six months ended June 30, 2019, revenue was recorded at $ 149,081; nil was recorded for the corresponding period. Revenue for the quarter was reported at $ 144,582 relative to nil in 2018 for the similar quarter.

Total expenses rose by 522% for the six months in the amount of $85,306 (2018: $13,708), of which accountancy fees and administrative fees increase 334% $5,863 (2018: $1,350) and 282%  $20,581 (2018: $5,381) respectively. Bank charges also contributed to the increase with a 312% growth to $2,150 (2018: $522). ‘Legal and professional fees’ and ‘Insurance Expense’ closed the quarter at $31,102 (2018: nil) and $10,753 (2018: nil) respectively. Audit fees  incurred for the quarter closed at $6,250 (2018: nil). Total expenses for the quarter posted a 679% upward movement to $17,835 in contrast to $2,289 reported for the same quarter in 2018.

Profit for the six months amounted to $63,775 versus  a loss of $13,708 for the corresponding period in the prior year. Net Profit for the quarter closed at $126,747 relative to $2,289 in 2018.

Earnings per stock unit for the six months amounted to $0.0056 (2018: $0.0012).The EPS for the second quarter was $0.0111 (2018: $0.0002). The number of shares used in our calculations was 50,000,000. MPCCELUS closed the trading period on August 12, 2019 at US$1.00, while MPCCEL closed the trading period on August 12, 2019 at J$130.00.

Balance Sheet at a Glance:

As at June 30, 2019, the Company recorded total assets of $11.09 million versus $1,079 in 2018.  The movement was due to ‘Investment –MPC Caribbean Clean Energy Fund LLC’ amounting to $10.80 million relative to nil in 2018. According to the Company, “ as at the balance sheet date the Company held 10,65 million shares in MPC Caribbean Clean Energy Fund LLC (‘MPCCCEF’) the MPCCCEF investment was acquired through subscription into the Fund and the Company became a registered member of the Fund on March 27th  2019. The Company’s investment in MPCCCEF has been recognised as a joint venture and is accounted for under the equity accounting method in accordance with ‘IAS28 Investments in Associates and Joint Ventures’. Management also noted “In this quarter, significant asset-related events occurred which indicated the growth and development of the fund. It is also noteworthy to mention that the acquisition of Tilawind was concluded on April 26th , 2019, which also triggered the completion of transfer to a new asset manager. This has been a good year for the wind resources in the region where the Tilawind wind farm is located. Due to more hands-on management the new asset manager, coupled with higher wind resources, Tilawind exceeded its forecasted operational and financial performance materially for the first half of this year.”

Additionally, MPC indicated, “ The asset, Paradise Park was successful in achieving various construction milestones. On May 26th , 2019 it surpassed the minimum standards to be acceptable by the grid operator for the park to be connected to the network. Then the commissioning and testing of the whole plant was successfully completed, affording it with the ability to begin producing electricity on June 6th , 2019. At the end of the month of June, The Jamaica Public Service (JPS) company, the grid operator and the off-taker with whom the asset has the Power Purchase Agreement (PPA) accepted the park to be commercially operational. This acceptance begins the invoicing of all kilo-Watt (Kw) hour produced up to 37 MW AC, consequently, an invoice was issued for the power produced and transported to JPS for the month of June. It is noteworthy to mention that the construction of the asset was completed on budget and on-schedule on June 23rd , 2019.”

Total Shareholders’ Equity as at June 2019 closed at $11.05 million compared to a deficit of  $18,942, which resulted in a book value of $0.97 (2018: $0.002).

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2019-08-13T16:45:22+00:00