Monday 14 September 2015

Tariff hike props up Sri Lanka’s Panasian Power profits

ECONOMYNEXT - Sri Lankan hydropower developer Panasian Power said a tariff hike helped boost profits last year although it generated less electricity from its hydro power plants owing to drought.

The company, which now has a total capacity of 11.9MW with 3.5MW under construction, said net profit for the 2015 financial year rose 17 percent to 168 million rupee from the year before.

Earnings before interest and tax rose 36 percent to 220 million rupees from a year ago driven by higher output from its Rathganga Hydropower plant although power generation at the Manelwala Hydropower plant fell slightly.

Panasian Power group revenue rose 34 percent to 299 million rupees from a year ago.

“The increase in tariff together with the notable performance at Rathganga plant during the year had been instrumental for the increase,” the company said.

Chairman and Chief Executive Prathap Ramanujam said the Rathganga power plant was commissioned during the year, adding 1MW to capacity while the firm also acquired a 90 percent stake of Padiyapelella Hydropower Limited.

“We expect the Rathganga plant, being one of the power plants with high plant factor in the country, to yield high generation in the years to come,” he told shareholders in the firm’s annual report.

“Though there is a 15 percent increase to 11.7 Mn KW in power generation at Rathganga Hydropower, the contribution made by tariff for the increase was well above to the total growth in revenue,” the report said.

The average tariff during the year was 15.04 rupees a kilowatt in both dry and wet seasons compared to 11.79 rupees in the previous year.

The rainfall in the catchment area at Manelwala Hydropower project was significantly low for most of the months in the year, the company said.

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