21st Apr 2015 08:38
LONDON (Alliance News) - Mytrah Energy Ltd shares rose on Tuesday morning despite reporting a fall in pretax profit in 2014, during which a rise in revenue was offset by higher financing costs as the company took on more debt to develop opportunities.
Mytrah shares were up 8.0% to 76.00 pence per share on Tuesday morning.
The India-based renewable power producer reported a fall in pretax profit to USD2.3 million in the year ended December 31, compared to a USD8.4 million profit in 2013 after a significant rise in finance costs offset an increase in revenue.
Revenue rose to USD69.5 million from USD50.9 million, primarily on account of a 41% increase in the amount of electricity generated during the year due to an increase in the average operating capacity to 442 megawatts in 2014 from 307 megawatts in the previous year.
However, the company's finance costs increased to USD43.5 million, compared to USD29.0 million a year earlier, after Mytrah increased its loans to USD339.9 million from USD279.5 million, as well as expensing interest on operating assets commissioned during the current year, which were under construction during the previous year, it said.
At the end of December, gross debt stood at USD456.3 million, up from USD376.5 million at the end of 2013.
Depreciation and amortization costs also rose slightly to USD11.3 million from USD9.1 million due to the increase in average operating capacity.
"With new projects already underway, we expect to continue to grow rapidly, entering the 2016 wind season with 740 megawatt operating, and a further 100 megawatts in construction. This operating portfolio generates equity cash flow sufficient to support continued growth at 200 megawatts per annum, and we believe that this will create a base level of shareholder value growth that is very attractive," said Chairman and Chief Executive Ravi Kailas.
"Strong growth in installed capacity, resulting in increased underlying profitability, proves the strength of the Mytrah business model. Additional finance raised, and projects in construction, combine with the company's extensive development pipeline to underpin continued rapid growth and shareholder value creation," the company said.
By Joshua Warner; [email protected]; @JoshAlliance
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