Year End Profit Plummet at Wigton Windfarm Limited

• Wigton Windfarm Limited (WIG) reported a net profit of $472.12Mn for the 12 months ended March 31, 2022, which represents a 40.4% decline in the net profit of $792.70Mn reported in 2021.
• Revenue for the period decreased by 20.9% due to lower levels of production from wind turbines owing to lower wind speed in tandem with lower availability of turbines.
• Also contributing to the decline in the bottom-line was a 3.9% increase in direct costs and 23.9% rise in general administrative expenses.
• Wigton continues to search for ways to reduce the impact of climate change and diversify its revenue base. As such, it is aggressively exploring business opportunities in non-traditional areas, both locally and regionally.
• Additionally, the company is in the process of verifying and certifying emissions reductions from Wigton Phase I and Wigton Phase II. This verification and certification is expected to result in the resumption of the sale of carbon credits by Wigton which will boost revenues.
• WIG’s stock price has increased by 1.9% since the start of the calendar year. The stock closed Wednesday’s trading session at $0.53 and currently trades at a P/E of 13.3x which is below the Main Market Energy, Industrials and Materials Sector Average of 18.2x.

(Sources: JSE & NCBCM Research)