In a move welcomed by analysts, State fund Sri Lanka Insurance (SLIC) is bullish on renewable energy, acquiring a stake of around 8% in Vallibel Power Erathna Plc. 

On Wednesday it had picked up 25 million shares at Rs. 8, adding to around 35 million shares acquired a few weeks ago. 

On Wednesday 68.3 million shares of Vallibel Power traded between a high of Rs. 8.40 and a low of Rs. 8 before closing at Rs. 8.30. Yesterday over 11 million shares traded whilst the share price dipped by 20 cents.

SLIC had picked up most of the quantities from Dr. T. Senthilverl who is believed to have sold out of Vallibel Power Erathna. As at 30 September 2020 he held around 17% stake.

In the 2Q ended 30 September 2020, Vallibel Power Erathna reported an after tax profit of Rs. 243.6 million, up by 3% from a year earlier whilst revenue grew by 5% to Rs. 353.5 million. In the first half revenue increased by 4% to Rs. 598 million but after tax profit was down 12% to Rs. 392 million. Bottom line was down 15% to Rs. 309 million but 2% in 2Q to Rs. 221 million.

Via three plants, it produced 50 million kwH of renewable energy, up from 43.6 million in the first half of FY20.

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