Wigton reduces debt load










In its most recent financial report, for the nine months ended December 2024, Wigton Energy Limited reported that total liabilities amounted to $4.6 billion, marking a significant decrease of $0.8 billion or 14.9 per cent compared to the similar period in 2023 when liabilities stood at $5.4 billion.

Management notes that this reduction primarily resulted from quarterly principal instalments for Bond A and the deferred tax liabilities. Throughout the period, the Company successfully fulfilled all debt covenants, ensuring timely and complete payments of both interest and principal amounts.

In March, 2025, the Caribbean Information and Credit Rating Services Limited has reaffirmed the assigned issue ratings of CariBBB+ on the regional rating scale and on the Jamaica national scale to the Jamaican $5.8 billion bond issue of Wigton.

The regional scale rating indicates that the level of creditworthiness of this obligation, adjudged in relation to other obligations in the Caribbean, is adequate. The stable outlook is predicated on the high likelihood that revenues and profits will moderate over the next 12 to 15 months. CariCRIS also expects Wigton to meet all debt service commitments in a timely manner.

For the quarter ended December 31, 2024, Wigton’s net profit before tax increased by $125.6 million, or 70.2 per cent, during the nine-month period ended December 31, 2024, however, the net profit after tax decreased by $262.2 million, or 53.4 per cent, compared to the same period last year (SPLY).

Management notes that the average plant availability was 78.0 per cent compared to 91.0 per cent for the SPLY, as a result of the down time associated with Hurricane Beryl. Revenue/Sales Total revenue (sales and other income) for the period ended December 31, 2024, was $1.81 billion, reflecting an increase of $55.9 million or 3.2 per cent compared to $1.75 billion earned in the SPLY.

The increase in total revenue was as a result of the higher production levels up to June 2024 and a business interruption insurance provision (claim) of $239.4 million related to Hurricane Beryl, which helped mitigate the production loss, post the hurricane.

Management indicates that discussions with stakeholders are ongoing regarding the repowering of Wigton Phase I in Rose Hill, Manchester. An Addendum to the Wigton Phase I Generation License, 2023, was executed between the Minister of Science, Energy, Telecommunications, and Transport and Wigton, effective November 21, 2024. This Addendum allows Wigton to generate electricity under the license using solar power instead of wind power. In addition, Wigton was one of two successful bidders in the tender issued by the Generation Procurement Entity (GPE) for the supply of up to 100 MW (Net) of electricity from renewable energy resources on a Build, Own, and Operate basis.

Discussions with stakeholders will continue to advance these projects. Wigton has successfully implemented and constructed two ( solar photovoltaic system projects and provides operations and maintenance services along with Innovative Energy Company DBA IEC SPEI Limited under the Wigton-IEC Joint Venture: the Jamaica Inn Limited and Carreras Limited projects.

The Company indicates that it is also working to expand its presence in the commercial and industrial sectors.

Caribbean Money Daily

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