Friday, May 27, 2011

Hydropower Free Lanka profits down

Hydropower Free Lanka PLC (HPFL), a subsidiary of Free Lanka Capital Holdings PLC, issuing a statement yesterday said its profits for the financial year ending March 31, 2011 fell due to additional depreciation and expenses it incurred when it went public.

"The company has reported a profitable fourth quarter ending o31 March 2011, with a profit before tax of Rs. 22.14 million as against Rs. 2.3 million in the corresponding period last year, according to unaudited accounts," the company said.

"The total profit before tax of Rs. 70.4 million has been recorded for the financial year 2010/11. It shows a decrease from Rs. 75.2 million the previous year. This decrease is due to additional depreciation and expenses relating to the Initial Public Offering (IPO) during the year," it said.

The company said was utilising assets available on its tea estates, Maturata Plantations and Pussellawa Plantations, to develop hydropower resources and are expanding activities.

Two plants have been successfully commissioned – one at Sanquhar Estate, Atabage and the other at Delta Estate, Pupuressa each producing 1.6mw of hydropower.

The company has signed the Standard Power Purchase Agreement (SPPA) with the Ceylon Electricity Board (CEB) for two new projects. Construction work on these, Thebuwana at Kuruwita and Stellenberg at Gampola, has already begun. Power generation is scheduled to start around March 2012.

Construction of two more projects at Ragala will commence soon and work is due to be completed by August 2012, the company said.

In addition to hydropower plants being constructed by HPFL, Free Lanka Capital Holdings (FLCH) will also set up seven more hydropower plants in Deniyaya and Rakwana, it said.

By the end of 2013, the group expects to generate a total of 16.02mw to the national grid.

During the past decade, country’s electricity demand reports an average annual growth of seven to eight percent.

"This is expected to increase with the post-war economic boom taking place and would be facilitated by the sound infrastructure development programmes of the government. It has been estimated that a 95 percent rate electrification will be achieved by 2015 with a mix of grid and off grid systems, the company said.

source - www.island.lk

No comments: