Vidullanka gains big on overseas investments

Thursday, 21 February 2019 01:51 - - {{hitsCtrl.values.hits}}

The reported Q3 interim financial report of Vidullanka PLC indicates a Rs. 123 million translation gain arising from the exchange rate movements and the overseas power generation segment reporting a further Profit after Tax of Rs. 155 million year to date.

The group reported a Profit after Tax of Rs. 120.5 million for the quarter increasing the year to date Profit after Taxes to Rs. 465 million. The group turnover has exceeded Rs. 1 billion for the first time with YoY increase of 38% and a 43% increase in Gross profit indicating the scale of economies. Increase in finance cost and the decrease in other income have resulted in the group reporting a 12% reduction to the Profit after Tax for the nine months period. However, the translation gain from the foreign operations has propelled the comprehensive income to Rs. 587 million which is a 13% increase over the comparative period.

“Whilst garnering the benefit of company’s past investments, the group is poised to commission to Dehiyathakandiya Dendro Power plant before the end of the financial year whilst the financing arrangements for the Bukinda SHPP is in progress,” Vidullanka Chief Executive Riyaz Sangani commented on the current performance and the future directions of the company.

The company further disclosed that the equity accounting treatment to the Rs. 61 million capital gain arising from the disposal of 49% stake in Vidul Biomass Ltd. to OC Energy Lanka Ltd., accordingly the gain is accounted in the Statement of Changes in Equity. At the meantime the company disclosed the loss of Rs. 23 million incurred in disposing the Udaka Energy Group Ltd., a joint venture with Vanguard Industries Ltd., which owned and operated the Haloya MHPP, as other income in the quarterly financial statements.

Vidullanka having developed over 25MW of installed capacity in Sri Lanka and Uganda combined, now in the process of expanding its horizons in Sri Lanka into other renewable energy sources and in Africa by exploring new power plants and destinations. Accordingly, the latest financial statements further disclosed that the investment of Rs. 222.5 million in to Vidul Biomass Ltd., Rs. 71.5 million in Timex Bukinda Hydro (U) Ltd. and a further Rs. 4.4 million into Africeylon Power Ltd.

Whilst continuing its endeavours in sustaining growth and increasing the shareholder wealth, the company has welcomed two new Independent Non-Executive Directors to the Board during the nine month period, namely, Rizvi Zaheed and Deepthie Wikramasuriya, two eminent personals from the corporate arena. Vidullanka PLC as a pioneer renewable energy developer, with the resources and skills at its disposal, and the access to opportunities internationally, is geared to reach further heights in its quest to make the world a better and greener place for everyone.