LVL Energy Fund PLC with an operational footprint covering Sri Lanka, Bangladesh and Nepal, recorded strong financial performance in the first half of the current financial year, which is reflected in the company’s provisional financial results for the six-month period ended September 30, 2018.
Its six-month profit of Rs. 461 million was higher than the profit of Rs. 439 million for the entire financial year ended March 31, 2018. The profit marked a growth of 33% over Rs. 346 million recorded for the corresponding period in the last financial year.
LVL Energy Fund PLC declared the largest interim dividend of 34 cents per share as its first interim dividend for FY 2018/19. The total cash outlay is Rs. 198 million compared to Rs. 111 million paid as first interim dividend last year.
Profit attributable to equity holders of the company for the period was Rs. 435 million compared to Rs. 318 million in the previous year, which reflects an increase of 37%.
CEO of LVL Energy Fund PLC, Sumith Arangala said, “We exceeded the profits recorded for the financial year as a whole in 2017/18, which is highly commendable. This performance was earned by leveraging on our strengths in the power and energy sector, further supported by our commitment to build energy security for the nation.
“LVL Energy Fund PLC is well entrenched in South Asia and will continue to power its growth further. I am confident that the company will end the 2018/19 year exceptionally well,” he said.
The Group recorded a profit before interest and tax of Rs. 574 million for the period compared to Rs. 467 million in the corresponding period last year, an increase of 23%. Finance cost for the period was Rs. 68 million compared to Rs. 100 million last year. The tax charge however was higher at Rs. 45 million compared to Rs. 22 million last year. Accordingly, profit after interest and tax for the period was Rs. 461 million compared to Rs. 346 million last year, signifying an increase of 33%.
Group income from subsidiary companies increased by Rs. 26 million to Rs. 215 million from Rs. 189 million in the previous year ,whilst operating expenses increased to Rs. 74 million from Rs. 66 million in the previous year mainly due to increase in operating expenses of subsidiary companies in line with their increased income.
Operating profit for the period increased to Rs. 180 million from Rs. 127 million in the previous year. Share of profit from equity accounted investees also increased to Rs. 394 million from Rs. 341 million in the previous year.
LVL Energy Fund is a subsidiary of Lanka Ventures PLC. It operates seven hydro power projects in Sri Lanka with a total capacity of 19.4 MW and two wind power projects with an installed capacity of 15.3 MW in Kalpitiya.