Hulisani narrows interim losses
JSE-listed energy investment company Hulisani has narrowed its loss for the six months ended August 31 to R6.9-million, compared with a loss of R10.2-million in the six months ended August 31, 2018.
Revenue for the period increased by R1.7-million year-on-year to R25.4-million, largely as a result of increased electricity sales from the Rustmo Solar Farm to State-owned utility Eskom.
Significant fair value gains of R8.6-million were reported on account of the valuation of the Avon and Dedisa peaking power plants, held through Hulisani’s investment in Legend Power Solutions.
In addition, the group’s put option in GRI – South Africa’s only operational manufacturer of wind towers – was recognised during the period, leading to the restatement of prior-year results and an increase in net asset value.
Commenting on the results, CEO Marubini Raphulu said that, with greater certainty in the sector, Hulisani is focused on simplifying the business, building scale and achieving growth over the long term, while containing costs.
“The significant reduction in losses in a challenging macroeconomic environment and the R63-million improvement in our net asset value point to prudent foresight in our investment negotiations.”
Expenses for the period under review were R11-million higher at R45-million, owing to a R17-million increase in credit loss provisions brought about by the implementation of a new accounting standard requiring the measurement of expected credit losses.
“This means that Hulisani has the capacity to manage significantly more transactions without a substantial increase in costs.
“We are, therefore, in a position to take advantage of operational opportunities in line with our positive outlook on the energy sector and our robust pipeline of deals,” said Raphulu.
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