Results Round-up
Power generation assets developer KSK Power Ventur saw first half operating profit fall due to increased costs.
The India-focused firm said operating profit for the six months to 30 September was down to $28.6m from $30.4m in the corresponding period 12 months ago.
Revenue rose to $175.9m from $150.7m, while lower financial costs saw pre-tax loss narrow from $115.2m to $69m.
The company had faced "extraordinary regulatory disruptions and difficult circumstances across the Indian power sector over the last 36 months and the challenging times and overall economic environment in India", the group's chairman, TL Sankar, said.
The firm’s operating assets recorded aggregate generation of 2,949 megawatt per hour, up 15% year-on-year, but it faced several challenges, such as issues with coal supply to power the plants and with power purchase agreements at key plants.
Sankar, however, insisted the outlook remained positive.
"With a new government in New Delhi, decision making is coming through and Courts and Regulators are now seeking to establish a level playing field for power generation," he said.
First-half revenue at utility infrastructure company Pennon rose, but profit was hit by increasing costs across the group’s two divisions.
In the six months ended 30 September, revenue rose 3.8% year-on-year to £692.3m, while operating profit fell 14.7% to £119.2m and profit before tax was down 9.8% to £100m.
Earnings before interest, tax, depreciation and amortisation (EBITDA) fell 7.1% to £200m, while net interest payable was reduced 27% to £21.6m.
The group’s South West Water division maintained stable operating profit despite a tariff freeze, while the Viridor arm’s EBIDTA were lower than in 2013, but the company expected them to exceed full-year expectations.
The company said adjusted earnings per share fell 7.1% to 22.1p, while the interim dividend of 9.98p per share represented a 6.3% increase and was, the firm said, in line with expectations.
Outlook remained positive, the firm said, adding that both of its divisions were making good progress in their respective projects.