KINGSTON, Jamaica — INNOVATIVE Energy Group Limited (IEG) is banking on approximately $2.3 billion in newly secured and restarted projects to sustain a recovery that took hold during the final three months of its financial year.

The energy company entered 2026/27 with $900 million in new contracts and several previously delayed projects back under execution. Those delayed projects had an initial contract value of approximately $1.4 billion.

Together, the projects represent almost seven times the revenue IEG earned during its latest financial year, although the full $1.4 billion does not necessarily remain to be booked because it represents the original value of work already underway.

The increased project visibility comes after an uneven year in which IEG recovered strongly in the fourth quarter but was unable to prevent a steep decline in annual profit.

Revenue for the year ended May 31 increased six per cent to $340.5 million. Net profit, however, fell 58 per cent to $34.4 million.

The difference was the rising cost of delivering the company’s projects.

For every $100 IEG earned in revenue, it retained approximately $47 after direct project costs, down from about $65 in the previous year. That left the company with less income to cover operating and financing expenses, with finance costs more than doubling during the year.

The final quarter nevertheless offered signs that the delayed projects were beginning to move.

Quarterly revenue more than quadrupled as IEG accelerated project execution and converted previously secured opportunities into active work. The company consequently moved from a $40.9-million loss in the corresponding quarter last year to a $30.8-million profit.

Nearly nine of every $10 of profit earned by IEG during the entire financial year was generated in those final three months.

Part of the quarterly improvement came from a $13-million fair-value gain on investment property. Even without that gain, however, IEG would have produced approximately $23.3 million in profit before tax for the quarter, indicating that the turnaround was not driven entirely by the accounting adjustment.

IEG said some projects had been delayed earlier in the year partly because of Hurricane Melissa in October 2025. Their remobilisation, along with the newly secured contracts, is expected to support higher revenue and improved cash collections during 2026/27.

Executing that volume of work will require IEG to continue financing materials, contractors and other expenses before it collects from customers.

The company’s financial statements show that receivables and prepayments increased by approximately $93 million during the year as business activity expanded. At the same time, short-term funding owed to a related party increased by approximately $88 million.

IEG said it met its working capital requirements through a mixture of normal financing arrangements and shareholder funding.

Cash generated from operations nevertheless improved substantially during the year, indicating that the company collected more cash from its underlying business despite the increase in outstanding receivables.

Management said it is continuing to work with its banking partners to improve its financing arrangements while monitoring collections and supplier payments.

The company now enters the new financial year with considerably more work in hand. Its results will depend on whether it can convert that project slate into cash and profit without the cost pressures that weakened its performance during 2025/26.