November 11, 2020
Wigton Windfarm Limited, for the six months ended September 30, 2020, reported sales of $1.36 billion, a 7% decline on the $1.47 billion reported in the prior year. Revenue for the quarter declined 3% to $612.85 million (2019: $632.34 million). WIG noted that, “the decrease in revenue was due to the decrease in sales of electricity which resulted from lower production in the current reporting period.”
Cost of sales went up 6% to close the period at $412.82 million versus $387.82 million booked in the previous comparable period. As such, gross profit declined to total $950.92 million (2019: $1.08 billion). While for the quarter, gross profit amounted to $407.72 million (2019: $436.52 million).
Other income amounted to $108.52 million, a 8% decline when compared to $118.22 million in the same period last year. General administrative expenses increased for the period amounting to $201.80 million relative to $181.34 million documented in the same period in the previous year.
Consequently, operating profit decreased 15%, closing the period under review at $857.65 million (2019: $1.01 billion). Operating profit for the quarter totalled $337.86 million (2019: $384.68 million).
Finance expense trended downwards from $301.72 million in 2019 to $257.98 million in 2020.
As such, profit before taxation went down by 16% to close at $599.67 million (2019: $712.50 million). After taxation of $143.92 million (2019: $171.00 million), net profit for the period totaled $455.75 million (2019: $541.50 million). Net profit for the quarter closed at $155.04 million versus $175.10 million booked in the similar period last year.
Earnings per share (EPS) was $0.041 for the period compared to $0.049 in 2019. EPS for the quarter amounted to $0.014 (2019: $0.016). The twelve-month trailing EPS amounted to $0.052. The number of shares used in the calculations is 11,000,000,000. WIG stock price closed the trading period on November 10, 2020 at $0.76.
Management stated, “the average plant availability rate was approximately 96.6%, ahead of the target of 93% which led to total production output of 83,260,045 kWh. This availability rate was higher than the previous year’s 92% for a similar period. The two main factors that affected our production were wind speed and plant availability, with wind speed being the most critical element impacting output. The wind speed for the period under review was lower than the comparative period in 2020.”
Balance Sheet Highlights:
As at September 30, 2020, Wigton’s total asset base went up by 8% amounting to $11.16 billion (2019: $10.33 billion). The increase was as a result of increases in ‘Cash and Deposits’ which closed $3.52 billion (2019: $2.35 billion). However, the increase was partially tempered by a decline in ‘Property, Plant & Equipment’, which closed the period at $7.12 billion (2019: $7.73 billion).
Shareholders’ Equity amounted to $3.89 billion relative to $3.44 billion in 2019 resulting in a book value per share of $0.35 relative to $0.31 in 2019.
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