LONDON (Alliance News) - Mytrah Energy Ltd Friday said it swung to a pretax loss in the first half of 2015 on the back of higher financing and depreciation costs, as revenue rose in line with the company's ongoing expansion.
The Indian-focused renewable energy company reported a USD3.0 million pretax loss in the first half of 2015, swinging from a USD3.3 million profit a year earlier, despite revenue rising to USD32.6 million from USD29.4 million.
The loss was caused by finance costs rising to USD25.6 million from USD17.3 million and depreciation charges increasing to USD7.2 million from USD4.8 million. Mytrah also booked a USD540,000 cost related to its refinancing, which was not present a year earlier.
Profit was also was hit by gross margin dropping to 75.5% from 83.5% a year ago.
However, earnings before interest, tax, depreciation and amortisation rose to USD30.3 million from USD25.4 million.
The company currently has revenue-generating assets in India with a capacity of 543 megawatts and plans to bring a further 200 megawatts before the 2016 wind season, which runs from April to November, the first 10 megawatts of which will be connected to the grid in the fourth quarter of 2015.
Overall, the company has projects with a capacity of 400 megawatts at the construction phase.
"Our 543 megawatt operating portfolio is performing well technically, with some plants exceeding 99% mechanical availability. The wind season started more slowly than expected, but we have seen improvement post period end and expect that this will continue through the remainder of the year, bringing the full-year result broadly in line with our expectations," said Chairman and Chief Executive Ravi Kailas.
Mytrah also said it continues to try to capitalise on the Indian government's target to have 170 gigawatts of wind and solar power capacity by 2022, with more than half of that comprised of solar power.
Mytrah said last week it has taken interest in the solar element of the Indian government's targets as the cost of solar has fallen and offers the company a "strong diversification opportunity". The company has participated in a number of state solar bids, most recently in Telangana, where it bid to provide 350 megawatts of power
That bidding process has now closed, and Mytrah said although it is waiting for confirmation, it believes it has won the rights to provide a "substantial portion" of the 350 megawatts which were on offer.
If Mytrah has won those solar rights, it will need to construct the projects to provide the power within 12 to 15 months but will benefit from a 25-year power-purchase agreement.
Mytrah shares were down 0.7% to 76.00 pence per share on Friday morning.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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