WIG reports 110% increase in first quarter net profit

Date: August 13, 2019

Wigton Windfarm Limited, for the three months ended June 30, 2019, reported sales of $832.82 million, a 6% increase on the $782.89 million reported in the prior year. WIG noted that, “the increase in revenue was positively influenced by the 2.9% increase in production and a 9.4% increase in the availability of the wind turbines.”

Cost of sales went up 9% to close the first quarter at $192 million versus $176.82 million booked in the previous comparable quarter. As such, gross profit inched up to total $640.82 million (2018: $606.07 million).

Other income amounted to $68.03 million, a 14% increase when compared to $59.50 million in the same period last quarter. In addition, general administrative expenses increased for the quarter amounting to $79.31 million relative to $77.96 million documented in the same quarter in the previous year. Management stated that, “the main contributor to the decrease was a reduction in finance expense of $210.4 million or 58.8% as a result of lower foreign exchange losses.”

Consequently, operating profit booked a 7% increase closing the period under review at $629.54 million (2018: $587.62 million).

Finance expense trended downwards from $357.79 million in 2018 to $147.43 million in 2019.

Additionally, profit before taxation went up grossly by 110% to close at $482.11 million (2018: $229.83 million). After taxation of $115.71 million (2018: $55.16 million), net profit for the quarter ended June 2019 closed at $366.40 million versus $174.67 million booked in the similar period last year.

Earnings per share (EPS) was $0.03 for the first quarter compared to $0.02 in 2018. The twelve-month trailing EPS amounted to $0.07. The number of shares used in the calculations is 11,000,000,000. WIG stock price closed the trading period on August 13, 2019 at $0.83.

Balance Sheet Highlights:

As at June 2019, Wigton’s total asset base went up by 5% amounting to $10.13 billion (2018: $9.68 billion). The increase was as a result of increases in ‘Pension Plan Assets’ and ‘Cash and Deposits’ which closed at $82.70 million (2018: $67.50 million) and $1.66 billion (2018: $744.07 million), respectively. However, the increase was partially tempered by a decrease in ‘Accounts Receivables’ and ‘Property, Plant & Equipment’ closing the period at $485.32 million (2018: $515.06 million) and $7.84 billion (2018: $8.25 billion), respectively.

Shareholders’ Equity amounted to $3.26 billion relative to $2.54 billion in 2018 resulting in a book value per share of $0.30 relative to $0.23 in 2018.

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