Wigton Energy Limited (formerly Wigton Windfarm Limited) saw a one-third reduction in its second quarter revenue from $560.38 million to $378.31 million as Hurricane Beryl’s impact shaved Wigton’s energy production by 34 per cent during the period.

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

Wigton Energy’s sole customer is the Jamaica Public Service Company Limited (JPS), which purchases Wigton’s energy output under a power purchase agreement (PPA). Thus, all of the energy Wigton generates is sold to JPS, which means that any disruption to either the turbines or grid transmission lines will impact the flow of the company’s revenue generation capacity. Wigton’s production during the second quarter fell from 36,281,468.30 kWh to 23,950,956.40 kWh, which translates to a 33.99 per cent reduction in energy produced. The availability or amount of renewable energy resource that could be accessed for energy production also fell from 90.8 per cent to 74.9 per cent over the six months period as well.

“The transmission lines are 269 KV that come from JPS that serves the three plants. Both lines were down for a couple of weeks. We had to await JPS to actually repair those lines. In the meantime, we carried out the repairs that were visible and obvious. However, there were certain repairs that we could not attend to until the turbines were actually energised. Once they were energised, we started to work around the clock testing all of the turbines. Most of the damage was restricted to Wigton [phase] 1, the older plant, and mostly to what we call the nacelle fibre glass covers,” said Wigton Chief Executive Officer (CEO) Gary Barrow at the company’s October 11 annual general meeting (AGM).

According to Wigton’s 2024 audited financials, the company’s phase I plant contributed 36 per cent of the company’s $2.37 billion in revenue and 56 per cent of the company’s $897.69 million operating profit/segment result. Wigton’s phase III plant is responsible for 42 per cent of the company’s revenue, but only 40 per cent of operating profit. Wigton received approval to repower Wigton phase I last year and received a new 20-year generational licence for this production plant. Wigton operates a 62.7MW windfarm across 44 wind turbines at the Rose Hill location.

“We were within a couple of weeks up to over 80 per cent production. We have some parts that we’re still awaiting. We expect them to come in the next couple of weeks and we will install those parts and start testing to bring the remaining turbines online,” Barrow noted on the restoration of power to the turbines

After accounting for a slight 11 per cent dip in cost of sales, Wigton’s Q2 gross profit dipped 51 per cent from $304.20 million to $149.52 million. While Wigton suffered this dip in its earnings, the company recorded 344 per cent jump in other income to $325.42 million as the company made a provision for the expected receipt of $239.40 million in business interruption insurance related to Hurricane Beryl.

This jump in other income allowed Wigton to record a 54 per cent rise in Q2 operating profit to $284.38 million. After accounting for reduce finance expenses, Wigton’s profit before tax increased by 144 per cent from $78.73 million to $191.99 million. However, the company’s one-time tax credit in the prior period meant that Wigton’s net profit was down by 67 per cent from $435.85 million to $143.99 million.

“The company continues its pursuit for investment opportunities in the green energy sector, both independently and in collaboration with its partners. We are dedicated to delivering energy solutions in wind, solar, and other renewable technologies. Furthermore, we will actively seek investment opportunities in clean technologies, driven by our commitment to creating a sustainable energy future in Jamaica; all with a view to enhance shareholder value and profitability,” stated Wigton’s second quarter report.

Wigton’s six months revenue was down five per cent to $1 billion with its operating profit rising 47 per cent to $600.35 million due to the business interruption insurance in the second quarter. Wigton’s profit before tax was up 121 per cent to $413.06 million, but its net profit dipped 39 per cent to $309.80 million. Wigton’s trailing twelve months earnings per share was $0.062.

Wigton’s total assets were down one per cent over the six months to $10.28 billion with cash rising to $3.10 billion. Total liabilities and shareholders equity was $4.87 billion and $5.41 billion, respectively.

Wigton is currently in the process of selling Lot 28 Ferry Pen, St Andrew, which should bring in 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 the final decision of the Generation Procurement Entity (GPE) on its pre-awarded bid for a 49.83-MW solar photovoltaic project to be situated in Clarendon. Wigton shareholders also approved the removal of its deeply entrenched articles at its AGM and the change of its name to Wigton Energy Limited, at a time when the company was using the trading name Wigton Energy.

Wigton’s stock price closed Tuesday at $1.06, which leaves the stock up 34 per cent with a market capitalisation of $11.67 billion. Norman Naar was appointed chief commercial officer on September 16. Gary Barrow acquired 100,000 ordinary shares of Wigton during the second quarter which made him a shareholder following his May 6 appointment as CEO.

Cacao Holdings Limited, which became Wigton’s fifth largest shareholder in March, has continued to increase its stake in the business by acquiring 19,572,264 ordinary shares over the six months to become the fourth largest shareholder with 550 million ordinary shares or five per cent of the company. Mayberry Jamaican Equities Limited, Wigton’s largest shareholder, also continued its buying during the period where it acquired 54,912,798 shares to own 993,200,476 ordinary shares or 9.0291 per cent. VM Building Society also acquired 23,793,762 ordinary shares to remain the second largest shareholder with an 8.2164 per cent stake, Mayberry Investments Limited Pension Scheme also bought 11 million ordinary shares to be the ninth largest shareholder with a 1.0337 per cent stake and Christine Georgia Wong appeared in the top 10 list during the quarter with a 0.9112 per cent stake.