Wigton Windfarm’s H1 Profits Down 38.6% Without One-Off Tax Adjustment.

  • Despite solid growth in total revenues and contained costs, Wigton Windfarm’s profits for the first six months of its financial year ending March 31, 2025 (H1 2025) softened in the absence of one-off income tax adjustments it experienced the prior year.
  • In keeping with the Government of Jamaica's policy to facilitate growth in the renewable energy sector, Wigton benefitted from a one-off tax adjustment in H1 2024 given its operations in the renewable energy sector, which bolstered its financial performance. However, there was no tax adjustment for H1 2025, which led to a 38.6% dip in earnings. Excluding the one-off tax adjustment in H1 2024, earnings would have grown by 121.3% in H1 2025.
  • Notably, the benefit was enacted within the financial year ending March 31, 2024, allowing the Company to file its 2023 tax return at a rate of 25% while making the relevant adjustments in its financial statements beginning in the second quarter of the financial year ending March 31, 2024.
  • Total revenues (sales and other income) rose by 12.9% to J$1.42Bn for H1 2025, reflecting growth in other income to $0.42Bn (+105.6%) which more than compensated for a 4.9% decline in sales to $1.05Bn. Downtime of the wind turbines associated with Hurricane Beryl resulted in a 32.5% reduction in energy sales to $0.38Bn in Q2, weighing on the overall H1 energy production and consequently revenues. With the downtime caused by Beryl, Wigton made provisions for the anticipated proceeds from its business interruption insurance, which boosted other revenues, resulting in a 105.6% increase in other income.   
  • Cost of sales (COGS) and general administrative expenses declined by 13.5% and 10.8% to J$228.79Mn and J$190.56Mn respectively for the review period. Continued expense management and operational efficiencies supported the reduction in direct costs. Finance expenses also declined by 13.1% YoY for H1 2025, as the Company continues to benefit from the March 2022 restatement of its Bonds, which introduced lower interest rates and quarterly principal payments.
  • At the close of the stock market on November 4th, 2024, Wigton's share price stood at $1.06, implying a P/E ratio of 17.10x, which is above the peer average for the Energy, Industrials and Materials (EIM) industry1 of 10.69x.
  • Looking ahead, Wigton will concentrate on five (5) strategic pillars to achieve sustained profitable growth, one priority being growth through diversification. The company is focused on diversifying into other renewable energy solutions while improving operational efficiency and seeking solo or partnered investment opportunities. This shift is crucial for sustaining shareholder value and ensuring long-term growth by diversifying into new areas and expanding the company’s capabilities to improve earnings.

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1The EIM industry consists of CCC, MPCCEL, WIG, TJH, KW, and BRG

(Sources: JSE & NCBCM Research)