LVL Energy Sept. net down 12%

Higher finance costs saw the net profits of LVL Energy Fund Limited (LVL) falling 11.9 percent to Rs.153 million during its second quarter from July-September 2017 (2Q18), compared to the corresponding quarter last year.

Basic earnings per share for LVL fell to 33 cents from 38 cents year-on-year (YoY). 
LVL Energy, which has power projects in Sri Lanka and Bangladesh, became a publicly listed company on the Colombo Stock Exchange through its initial public offering (IPO) last month and the shares started trading this week.

LVL Energy group revenue increased 18 percent YoY to Rs.126.6 million. Operating profits increased 18.3 percent YoY to Rs.87.1 million.  

LVL Energy’s share of net profit of equity accounted investees remained flat at Rs.185.5 million. Finance costs increased 51 percent YoY to Rs.54.5 million.

Increased investment in equity accounted investee Bambarapana Hydro Power (Private) Limited during the six-month period between the start of the financial year and the end of the second quarter saw the LVL Energy group asset base increase to Rs.4.5 billion from Rs.4 billion.

This period also saw the group’s long-term interest- bearing borrowings increase to Rs.600.8 million from Rs.314.4 million and the short-term interest-bearing borrowings increase to Rs.557 million from Rs.402.4 million.

The proceeds from the Rs.1.2 billion IPO are intended to retire a considerable portion of these borrowings, in addition to further investments in Sri Lanka and Nepal.

Lanka Ventures PLC owns a majority of the shares in LVL Energy.

Lanka Ventures is in turn is owned by a joint venture vehicle between Hatton National Bank PLC and DFCC Bank PLC.