WIG reports 7% decline in nine months net profit

Date: February 12, 2020

Wigton Windfarm Limited, for the nine months ended December 31, 2019, reported sales of $1.83 billion, a 6% decline on the $1.95 billion reported in the prior year. Revenue for the quarter declined 22% to $363.38 million (2018: $465.02 million). WIG noted that, “the lower revenues are directly related to a 25.6% decreased in production in the current reporting quarter due to a decline in average wind speed from 8 meters per second in 2018 to 7 meters per second in 2019.”

Cost of sales went up 9% to close the period at $592.14 million versus $543.45 million booked in the previous comparable period. As such, gross profit declined to total $1.24 billion (2018: $1.41 billion).

Other income amounted to $233.57 million, a 50% decline when compared to $465.12 million in the same period last year. General administrative expenses increased for the period amounting to $266.40 million relative to $248.11 million documented in the same period in the previous year.

Consequently, operating profit decreased 26%, closing the period under review at $1.20 billion (2018: $1.63 billion). While, for the quarter, operating profit amounted to $189.35 million (2018: $485 million).

Finance expense decreased from $881.04 million in 2018 to $511.96 million in 2019.

As such, profit before taxation went down by 7% to close at $691.62 million (2018: $746.07 million). After taxation of $165.99 million (2018: $179.06 million), net profit for the period totaled $525.63 million (2018: $567.02 million). Net loss for the quarter closed at $15.87 million versus net profit $270.96 million booked in the similar period last year.

Earnings per share (EPS) was $0.05 for the period, the same reported in 2018. LPS for the quarter amounted to $0.0014 (2018: EPS of $0.02). The twelve-month trailing EPS amounted to $0.047. The number of shares used in the calculations is 11,000,000,000. WIG stock price closed the trading period on February 11, 2020 at $0.82.

Balance Sheet Highlights:

As at December 31, 2019, Wigton’s total asset base went up by 5% amounting to $10.27 billion (2018: $9.76 billion). The increase was as a result of increases in ‘Cash and Deposits’ which closed at $2.28 billion (2018: $1.17 billion). However, the increase was partially tempered by a decline in ‘Accounts Receivables’ and ‘Property, Plant & Equipment’, which closed the period at $261.64 million (2018: $392.36 million) and $7.60 billion (2018: $8.07 billion), respectively.

Shareholders’ Equity amounted to $3.42 billion relative to $2.89 billion in 2018 resulting in a book value per share of $0.31 relative to $0.26 in 2018.



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