Wigton Energy Limited (formerly Wigton Windfarm Limited) saw its second quarter revenue fall by a third, from $560.38 million to $378.31 million, as the impact of Hurricane Beryl reduced Wigton’s energy production by 34% during the period.

The renewable energy company noted in a previous disclosure that the July 3 event caused damage to its warehouses and wind turbines at its wind farm in Rose Hill, Manchester. However, its second quarter report (July to September) revealed the extent of the impact of this disruption on its revenues and other relevant factors.

Wigton Energy’s only customer is Jamaica Public Service Company Limited (JPS), which purchases Wigton’s power output under a power purchase agreement (PPA). So all the power produced by Wigton is sold to JPS, meaning any disruption to the grid’s turbines or transmission lines will impact the flow of the company’s revenue-generating capacity. Wigton’s production during the second quarter fell from 36,281,468.30 kWh to 23,950,956.40 kWh, resulting in a 33.99 percent reduction in energy produced. The availability or quantity of accessible renewable energy resources for energy production also decreased from 90.8 percent to 74.9 percent during the six-month period.

“The transmission lines are 269 KV and come from JPS which serves the three power stations. Both lines were down for a few weeks. We had to wait for JPS to repair these lines. In the meantime, we carried out the repairs which were visible and obvious. However, there were some repairs that we couldn’t take care of until the turbines were actually powered on. Once powered up, we started working around the clock to test all the turbines. Most of the damage was limited to Wigton (phase) 1, the old factory, and mainly to what we call the fiberglass covers of the nacelle,” said Gary Barrow, CEO of Wigton, during the company’s annual general meeting on October 11 (AGM). ).

According to Wigton’s audited financial statements for 2024, the company’s Phase I plant contributed 36% of the company’s $2.37 billion in revenue and 56% of the $897.69 million dollars of operating profit/segment result of the company. The Wigton Phase III plant accounts for 42 percent of the company’s revenue, but only 40 percent of operating profit. Wigton received approval to restart Wigton Phase I last year and received a new 20-year generational license for this production facility. Wigton operates a 62.7 MW wind farm spread across 44 turbines at the Rose Hill site.

“Within a few weeks, we had reached production above 80 percent. We have some parts that we are still waiting for. We expect them to arrive in the next few weeks and we will install these parts and begin testing to bring the remaining turbines online,” Barrow noted of restoring power to the turbines.

After accounting for a slight 11 percent decline in cost of sales, Wigton’s second-quarter gross profit fell 51 percent, from $304.20 million to $149.52 million. While Wigton suffered this decline in profits, the company recorded a 344 per cent rise in other income to $325.42 million, with the company making a provision for the expected receipt of $239.40 million insurance against business interruption linked to Hurricane Beryl.

This increase in other income helped Wigton record a 54 percent increase in its second-quarter operating profit, to $284.38 million. After taking into account the reduction in financial expenses, Wigton’s pre-tax profit increased by 144 percent, from $78.73 million to $191.99 million. However, the one-time tax credit given to the company in the previous period caused Wigton’s net profit to fall by 67 per cent, from $435.85 million to $143.99 million.

“The company continues to pursue investment opportunities in the green energy sector, both independently and in collaboration with its partners. We are committed to providing energy solutions in the areas of wind, solar and other renewable technologies. Additionally, we will actively pursue investment opportunities in clean technology, driven by our commitment to creating a sustainable energy future in Jamaica; all with the aim of improving shareholder value and profitability,” Wigton’s second quarter report said.

Wigton’s six-month turnover fell 5 per cent to $1 billion, while its operating profit rose 47 per cent to $600.35 million due to insurance against operating losses in the second quarter. Wigton’s pre-tax profit rose 121 per cent to $413.06 million, but its net profit fell 39 per cent to $309.80 million. Wigton’s trailing twelve month earnings per share were $0.062.

Wigton’s total assets fell 1% over the half to $10.28 billion, while cash increased to $3.10 billion. Total liabilities and equity were $4.87 billion and $5.41 billion, respectively.

Wigton is currently in the process of selling Lot 28 Ferry Pen, St Andrew, which is expected to bring fresh cash into the business. This property was acquired in February 2023 for US$1.55 million or $243.68 million. Wigton is also awaiting a final decision from Generation Procurement Entity (GPE) regarding its pre-awarded bid for a 49.83 MW solar PV project to be located in Clarendon. Wigton shareholders also approved the removal of its deeply entrenched articles of association at its annual general meeting and the change of its name to Wigton Energy Limited, at a time when the company used the trading name Wigton Energy.

Wigton’s share price closed Tuesday at $1.06, leaving the stock up 34 percent with a market capitalization of $11.67 billion. Norman Naar was appointed commercial director on September 16. Gary Barrow acquired 100,000 shares of Wigton common stock during the second quarter, making him a shareholder following his May 6 appointment as CEO.

Cacao Holdings Limited, which became Wigton’s fifth largest shareholder in March, continued to increase its stake in the company by acquiring 19,572,264 ordinary shares during the half-year to become the fourth largest shareholder with 550 million ordinary shares, or five percent of society. Mayberry Jamaican Equities Limited, Wigton’s largest shareholder, also continued its purchases during the period where it acquired 54,912,798 shares to hold 993,200,476 ordinary shares, or 9.0291 percent. VM Building Society also acquired 23,793,762 ordinary shares to remain the second largest shareholder with a stake of 8.2164 percent, Mayberry Investments Limited Pension Scheme also purchased 11 million ordinary shares to become the ninth shareholder with a stake of 1 .0337 percent and Christine Georgia Wong appeared in the top 10 during the quarter with a stake of 0.9112 percent.