WindForce declares Rs. 1.35 bn dividend for FY 23/24

Renewable energy player WindForce PLC announced it will be paying out a dividend of Rs. 1 per share, amounting to a total dividend payout of Rs. 1.35 billion. 
With this recent dividend announcement, the total dividends declared by WindForce since its IPO now exceed Rs. 3.1 billion. 

Shareholders will receive a 6.3 percent return on their investment based on the IPO subscription price, reaffirming WindForce’s commitment to delivering value to its investors.
The announcement comes amidst impressive financial performance by WindForce in the first nine months of the fiscal year 2023/2024. The company reported consolidated revenue of Rs. 4.6 billion, marking 16 percent Year-on-Year (YoY) growth. WindForce recorded a pre-tax profit of Rs. 1.9 billion during this period.

 In a statement to the media, WindForce said it has recovered long outstanding arrears from the Ceylon Electricity Board (CEB). Therefore, the dividend declared by WindForce is paid out of the dividend income received from its project companies, resulting in the exemption of this dividend from income tax for shareholders. This exemption further enhances the attractiveness of WindForce’s dividend payout to investors.

“WindForce’s dividend declaration comes at a time when the company is actively investing in its largest solar power project to-date, the Siyambalanduwa 100 MW project. This ambitious project underscores WindForce’s commitment to expanding its renewable energy portfolio and contributing to Sri Lanka’s sustainable development goals,” the entity said.

Records Rs. 98 mn earnings for 3Q24

WindForce PLC, for the third quarter of the 2023/2024 financial year, recorded earnings amounting to Rs. 98 million, which is an 81 percent contraction from the Rs. 512 million recorded in the corresponding period of the previous year.

The revenue for the 3Q24 period was recorded as Rs. 1.27 billion, up 26 percent Year-on-Year (YoY) from Rs. 1.07 billion in 3Q23.

For the quarter under review, the entity saw its administration expenses, and selling and distribution expenses expand by 54 percent and 69 percent YoY. While finance income contracted by 84 percent YoY, the finance cost grew by 33 percent. Meanwhile, for the nine-months ended 31 December 2024, WindForce achieved a consolidated revenue of Rs. 4.6 billion which is a 16 percent YoY growth compared to the corresponding period in 2022. 

The bottom line for the same period declined by 19 percent YoY to Rs. 1.68 billion. This decline was mainly due to the two wind plants Joule and Beta entering their second tier of operations from November/December 2022 which resulted in a considerable tariff drop. 

Looking at sector-wise performance, the wind sector saw its revenue expand 20 percent YoY, due to the integration of the Hiruras wind power plant.

The solar sector demonstrated a 4 percent increase in revenue, with rooftop plants such as Surayadhanavi, Hirujanani, and Sky Solar contributing to a 9 percent rise. The increase was attributed to improved operational efficiency compared to the previous year’s power cuts.

The hydro sector saw revenue expand by 3 percent. Here the HPD plant faced an 11 percent decline in generation due to the Mahaweli Authority (MASL) controlling the Kala Wewa spill amidst continuous rainfall. As of 31 December 2023, the top three shareholders of Windforce PLC are; Akbar Brothers (36.48 percent), Hidramani (20.67 percent), and Mona Exports (7.53 percent).