Wigton Energy slashes over $800 million in debt ahead of solar push

Wigton Energy Ltd has cut over $800 million worth of debt in the year, clearing the way for the wind-power producer to chase solar projects even as half-year profit slipped.

Its borrowing now equates to one-third of its $5.8-billion capital from roughly half a year ago.

“The company strengthened its financial position and lowered its debt burden by fully repaying bond-A during the period,” stated the company in the preface to its financials signed by Chairman Dan Theoc and Director Allison Philbert.

Wigton operates a 62.7-megawatt (MW) wind farm complex in Manchester. Production rose 16.6 per cent to 94.7 million kilowatt-hours.

Paying out bond-A resulted in reducing its borrowing from $2.7 billion to $1.8 billion. The remaining amount refers to bond-B, set for repayment within 12 months. Cash and equivalents of $3.3 billion cover the current debt portion with room to spare.

“Backed by a robust capital base, reduced leverage, continued investment in technology and disciplined management, the company is well positioned to execute its long-term growth strategy.”

Net profit jumped 52 per cent to $144.6 million on sales of $726.5 million, up 42.6 per cent. Finance expense fell by half to $38.0 million for the quarter.

Earnings are improving sequentially, with six months net profit down 11.5 per cent to $313.6 million. Hurricane repairs lifted cost of sales 21 per cent to $567.4 million and administrative expenses rose 18 per cent to $506.4 million.

The balance-sheet repair comes as Wigton turns to growth. The company said it is advancing a 70.53-megawatt utility solar project, working with stakeholders on the power purchase agreement and financing. It has been shortlisted for regional tenders and plans to bid in an upcoming local solicitation from the Generation Procurement Entity.

Separately, Wigton is in contracting talks on a commercial-and-industrial solar project with what it called a leading Jamaican industrial entity. “The company is optimistic about concluding this opportunity in the near term,” it said, while cautioning that completion remains subject to approvals and definitive agreements.

Earnings per share for the quarter totalled 1.3 cents from less than a cent a year earlier. Over six months, earnings fell to 2.85 cents from 3.22 cents.