Part of measures to improve the company’s bottom line

Wigton Windfarm has entered into a financial advisory services agreement with Mayberry Investments.

No details have been provided about the agreement, but it comes after Wigton posted a decline in profits and revenues during the nine months ended December 31, 2021.

The financial services agreement is part of the measures being rolled out by Wigton to improve its financial position amid declining revenues and escalating costs.

Net profit for the period under review totaled $277.50 million, down from the J$591.65 million reported during the comparable period in 2020. Net profit for the December third quarter also declined, closing at J$35.52 million.

The company reported that, “the nine months period, April to December 2021, saw an overall reduction of 53.1 per cent in net profit. This decrease was a result of equipment maintenance cost, lower levels of production, which impacted sales revenue and the impact of the contractual rate reduction for Wigton Phase II”.

Profit before taxation for the combined three quarters fell by 53 per cent to close at $365.13 million, down from $778.49 million during the comparable period in 2020. Taxation amounted to $87.63 million, down from the $186.84 million booked in 2020.

During the period under review, Wigton reported sales of $1.58 billion, representing a 19 per cent decrease on the $1.94 billion reported in the prior year. Revenues for the quarter decreased by 36 per cent to $367.45 million.

Cost of sales went up three per cent to close the period at $631.08 million versus $613.96 million booked in the previous comparable period. Arising from the poor performance the management is looking at a number of options to boost revenues and profitability including the resumption of selling carbon credits.