Wigton Windfarm Limited (WIG)

Unaudited financials for the first quarter ended June 30, 2024:

Wigton Windfarm Limited (WIG) for the first quarter ended June 30, 2024, reported a 27% increase in sales totalling $622.03 million compared to $491.14 million in the corresponding three months last year. Management noted, “The increase was due to a 7.7Mn kWh or 24.0% improvement in production, resulting in an increase in sales revenue of $130.9Mn or 26.7% over the SPLY.”

Cost of Sales amounted to $199.41 million (2023: $238.57 million), this represents a decrease of 16% year over year. Consequently, gross profit increased by 67% to $422.62 million compared to $252.57 million for the first quarter ended June 30, 2023.

Other Income decreased by 30% to close at $90.12 million (2023: $128.75 million), while General Administrative Expenses increase by 26% from $156.10 million in 2023 to $196.76 million for the three months.

Operating Profit for the three months amounted to $315.98 million, a 40% increase relative to $225.22 million reported in 2023.

Finance Expense totalled $92.52 million a 14% decrease from the corresponding period last year. (2023: $107.03 million).

Profit before taxation for the first quarter ended June 30, 2024, amounted to $221.07 million, a 105% increase relative to $107.90 million reported in 2023.

Taxation for the three months had a 40% increase to reach $55.27 million (2023: $39.53 million).

Net Profit for the three months amounted to $165.81 million, a 143% increase from the $68.37 million reported in 2023.

Consequently, Earnings Per Share for the three months amounted to $0.02 (2023: EPS: $0.01). The twelve-month trailing EPS was $0.09, and the number of shares used in these calculations was 11,000,000,000.

Notably, WIG’s stock price closed the trading period on July 30, 2024, at a price of $1.02 with a corresponding P/E ratio of 11.98x.

Balance Sheet Highlights

The company’s assets totalled $10.34 billion (2023: $10.64 billion). Wigton highlighted, “During the reporting period, Wigton experienced a 3% decrease in total assets, amounting to $305.9Mn. Non-current assets saw a 7% decline, totaling $441.3 Mn, primarily due to depreciation of the Company’s fixed assets.  Ongoing negotiations with key stakeholders are in progress to replace the fully depreciated Wigton Phase I equipment with new equipment, as previously disclosed.  Current assets increased by $135.3 Mn or 3%, reflecting the Company’s continued management of short-term liquidity.”

Shareholder’s equity was $5.26 billion (2023: $4.50 billion), representing a book value per share of $0.48 (2023: $0.41).

Disclaimer:

Analyst Certification -The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation(s) or view (s) expressed by that research analyst in this research report.

Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.