LVL Energy Fund PLC sustained its strong profitability path by posting 17% growth in profitability within 9 months of operations. Announcing its provisional financial results for the 9-month period ended 31`st December 2018, LVL Energy Fund PLC recorded a profit before interest and tax of Rs. 710 million for the period compared to Rs. 628 million in the corresponding period last year, reflecting an increase of 13%. Meanwhile, finance cost for the period was recorded at Rs. 104 million compared to Rs. 155 million last year. However, the tax charge was higher at Rs. 85 million compared to Rs. 26 million last year. Accordingly, profit after interest and tax for the period was Rs. 522 million compared to Rs. 447 million last year signifying an increase of 17%.
Buoyed by the robust financials for the period under review, Mr. Sumith Arangala – CEO of LVL Energy Fund PLC, commented, “I am pleased to see that our conviction of closing the year on a profitable note was well founded, as our nine-month financial performance reflects the astuteness of our investments and professional management. Notwithstanding the pressure from challenging macro economic conditions, the company has succeeded in delivering a noteworthy performance to post a PAT of Rs. 522 mn as compared to Rs. 447 mn in the nine months of the previous year. Profit attributable to equity holders of the company for the period grew to Rs. 483 million compared Rs. 398 million in the previous year, reflecting an increase of 21% and underscoring our commitment to our stakeholders. The numbers speak for themselves and make us even more confident about the future.”
Group income from subsidiary companies for the period stood at Rs. 309 million compared to Rs. 311 million in the previous year, whilst operating expenses stood at Rs. 110 million compared to Rs. 103 million. Operating profit for the period increased to Rs. 257 million from Rs. 217 million in the previous year. Share of profit from equity accounted investees also increased to Rs. 468 million from Rs. 412 million in the previous year.
LVL Energy Fund PLC has an operational footprint covering Sri Lanka, Bangladesh and Nepal. The performance of hydro power plants was consistent with that of the previous year, whilst its thermal power plants in Bangladesh recorded a stronger performance during the period compared to last year. The share of profit from the Bambabarapana hydro power plant that commenced commercial operation in the last quarter of the previous financial year also contributed towards a higher group profit for the period. Power generation of wind power plants during the period was less than in the previous year mainly due to less favourable weather conditions.
LVL Energy Fund PLC 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. LVL Energy Fund PLC was incorporated in June 2006 as a subsidiary of Lanka Ventures PLC with an initial capital of Rs. 300 million. The main objective of the company was to invest in projects in the power and energy sector in Sri Lanka and across the region. Up to June 2016 the company held several rounds of fund raising which culminated in a total fund base of Rs. 2,636 million by 31st March 2017. Thereafter the company held an IPO to raise a further capital of Rs. 1,200 million and obtained a listing for shares at the Colombo Stock Exchange. The company remains a well-diversified entity with investments in renewable and thermal power projects in Sri Lanka, Bangladesh and Nepal, and is set to help usher in a new era of sustainable energy use.