Wind gusts benefit Wigton’s bottom line
Published:Sunday | August 11, 2024 | 12:06 AM
Renewable energy company Wigton Windfarm Limited, which now trades as Wigton Energy, is reporting improved performance for the first quarter ended June, a period in which net profit shot up 142 per cent.
The improved numbers resulted from several factors, including higher wind availability and plant readiness. The average plant availability was 93.3 per cent, up from 89.8 per cent for the comparative period in 2023. Power production increased by 24 per cent to 7.7 million kWh, moving from just under 32 million kWh to $39.6 million kWh.
Consequently, sales revenue gusted to $712.15 million, up by $130.9 million, or 26.7 per cent, over the similar period in 2023. Wigton carved $165.8 million in profit from the June quarter sales, which was more than two times better than the $68.37 million earned in the June 2023 period.
Meanwhile, the energy company is still working on the replacement programme for its very first set of wind turbines that were commissioned in 2004 and have come to the end of their useful life.
The long-term power supply contract related to that segment of Wigton’s operation came to an end in April, but the company was given a three-year leeway to complete the replacement project, by Jamaica Public Service Company Limited, to which Wigton is contracted as an independent power provider. Such contracts are usually 20 years in duration.
The turbines to be replaced account for 20.7MW of Wigton’s near 62.7MW capacity.
CEO Gary Barrow who took over the leadership of the energy company in May, following the resignation of its long-time head, Earl Barrett, said in an interview with the Financial Gleaner that the replacement programme is taking shape.
“Repowering is a process, and we are currently engaged with all stakeholders involved in designing and delivering the technology as well as the required funding,” Barrow said.
The company is yet to say how big an investment it plans to make in the new turbines.
However, the technology it is scouting is expected to improve the company’s overall output.
As for the improved plant performance in the April-June period, it was ascribed to continued maintenance work.
MAXIMISE AVAILABILITY
“We continue to have a robust maintenance programme to maximise availability taking into account age of turbines and environmental conditions,” Barrow said.
The adoption of the Wigton Energy identity aligns with the company’s push to diversify. That process is under way and includes its minority investment in auto distributor Flash Motors.
The investment has so weighed on Wigton, but the losses associated with the dealership seem to have moderated.
Wigton’s share of losses in the associate company was $2.38 million in the June quarter; whereas for the financial year ended March 2024 the loss was just under $11 million, or about $2.7 million per quarter on average.
Barrow says Wigton’s involvement in Flash Motors won’t change.
“We continue to support this investment,” he said.