Talks moving apace with Cabinet’s approval of new 20-year licence

Durrant Pate/Contributor

Negotiations are far advanced on repowering phase one of Jamaican renewable energy company, Wigton Windfarm in Rose Hill, Manchester.

The publicly listed energy renewable company plans to replace its windfarm equipment, which will become obsolete within the next two to three years. Wigton is reporting that discussions are ongoing with key stakeholders on repowering phase one of the windfarm, which would result in a reduction in maintenance costs.

Talks have been advancing with equipment suppliers since the Government of Jamaica approved a new 20-year generation licence for phase one. In addition to repowering its phase one wind farm, Wigton is also focused on diversification into non-traditional areas of energy.

As such, discussions are ongoing with the relevant regulatory authorities around the timing of the next request for proposal (RFP) for the addition of new renewable energy to the national grid.

Second quarter performance

The April to September 2022 second quarter saw an overall increase of J$148.43 million or 61.3 per cent in net profit over the similar period last year. This increase stemmed from an 8.6 per cent rise in production, resulting in an increase in sales revenue growing to J$143.04 million or an 11.8 per cent growth as well as a marginal increase in other income and an overall decrease in expenses of $J2.70 million or 0.3 per cent.

Wigton experienced an increase in its production by 7.097 million kilowatt/hours (kWh) or 8.6 per cent compared to the corresponding period in 2021. Additionally, the average plant availability rate increased to 92.5 per cent, up from 87.6 per cent recorded in 2021.

Total revenue for the second quarter was J$1.43 billion, representing a $145.72 million or 11.3 per cent increase, when compared to the $1.28 billion booked in 2021. Total expenses for the quarter decreased by $2.70 million or 0.3 per cent when compared to 2021, indicative of Wigton’s continuing efforts to improve operational efficiencies and prudently manage expenses.

One such operational efficiency initiative was the restatement of Wigton’s bonds in March 2022, which resulted in a reduced finance cost of J$13.19 million or 5.7 per cent when compared to 2021. Total assets of the company decreased by J$85.66 million or 0.8 per cent.

The management reports that, “Wigton’s continued profitable operations have accordingly strengthened the company’s balance sheet and enhanced its financial flexibility to grow the business from initiatives being pursued”.

Total liabilities were $6.05 billion, a decrease of $516.48 million or 7.9 per cent lower than the $6.57 billion recorded in 2021.