JSE-listed energy investment group Hulisani Limited on Monday reported a 100% increase in dividends to R36.9 million from R18.1 million for the year ended February 2019, saying investments met or exceeded projections.
Group revenue for the year also rose to R50.4 million from R37.4 million and while operating costs were up to R73.3 million from R57.7 million, largely due to timing considerations.
While net cash from group operating activities for the period was positive, accounting factors including a delay in signing power purchase agreements (PPAs) contributed to losses.
Hulisani is an investment holding company that generates dividend income on its investments, which are largely focused on energy projects including gas, solar PV, concentrated solar, wind and hydro in South Africa and in sub-Saharan Africa.
Its key portfolio includes interests in GRI Wind Steel, Kouga Wind Farm, RustMo1 Solar Farm and the Avon and Dedisa Peaking Power Plants.
Hulisani said dividends from Kouga Wind Farm were 60% higher than anticipated at R24 million, while those from RustMo1 Solar Farm were in line with expectations at R12.3 million.
Chief executive Marubini Raphulu said the group’s imperative was to achieve a level of scale in its core portfolio.
“Our current projects pipeline in the secondary market is approximately R1.2 billion in relation to South African operating and revenue generating energy assets,” Raphulu said. “GRI, which manufactures wind towers, was negatively affected by the delayed signing of power purchase agreements. Since their conclusion however, new wind tower orders have significantly improved GRI’s prospects.
“Greater energy policy certainty is encouraging, and we anticipate that our investments in advanced projects in the renewable energy sector will benefit from further conclusion of PPAs as well as upcoming renewable energy independent power producer procurement programme and gas to power programme projects,” he added.
Raphulu said Hulisani would continue to actively build capability and aggressively pursue opportunities in the renewable energy sector to enhance returns, while continually assessing various forms of funding to enable the conclusion of the focus projects in its pipeline.
– African News Agency