Panasian Power says revenue, profits up

Friday, 7 January 2011 01:16 - - {{hitsCtrl.values.hits}}

Panasian Power Ltd., (PAP) which recently concluded its Rs. 600 million IPO, has shown a marked increase in revenue and profit compared to last year, due to increased efficiency and an increased plant factor.

The Company said yesterday that the revenue for the month of December 2010 from the Manelwala Plant reached Rs. 20 million and the consolidated revenue of the Group was Rs.34 million.

PAP recently initiated action to enhance the capacity of its plant in Rathgama, Ratnapura.

The capacity will be increased from 2MW to 3MW, and the plant is expected to be in operation by December 2011.

Chairman Dr. Prathap Ramanujam said: “The Company will continue to increase its capacity with new acquisitions as part of its strategy to increase its capacity to 15MW of mini hydropower generation. The company is also considering expanding investment into other sustainable renewable energy sources.”

“There is a lot of momentum behind this initiative to catalyse the mini hydro industry in the country, and we are fully confident that the opening of trading will give more prominence to one of the core sectors of this nation,” Dr. Ramanujam added.

He further said that Panasian Power Limited has fully settled the purchase consideration of Rs.565,107,184 to Power Hub International Sdn. Bhd. for the acquisition cost of Manelwala Hydropower Pvt. Ltd, through the IPO proceeds. With this settlement, the primary mortgage of project assets and shares of the Group to Sampath Bank Plc has been fully discharged. Chairman, Dr.Ramanujam said that with this settlement, the Group has become debt free.

CSE debut today

Panasian Power Ltd’s shares will have their debut trading today on the Colombo Stock Exchange, following a successful Initial Public Offering late last year.

In yesterday’s FT we had inadvertently said trading would start on 6 January.

The Company’s 500 million shares will be listed on the main board of the CSE and classified under the Power and Energy Sector. Its assigned code is PAP-N-0000.

Via its IPO, the Company issued 200 million shares at Rs. 3 each raising Rs. 600 million. It was oversubscribed by seven times.