Wisynco’s US$2.7 million Liquefied Natural Gas plant, which is expected to save the company US$1 million per year in electricity costs, has been delayed.
The commissioned 2-megawatt plant, which should have been operational this year, is now scheduled to come on stream in the first quarter of next year. The delay is due to the fact that the components for the plant have just arrived in the island much later than scheduled.
Speaking with Caribbean Business Report at the end of Wisynco’s annual general meeting on Wednesday, Chairman William Mahfood expressed confidence that the plant will be up and running by the latest March next year. “The equipment is now here….the equipment is being installed as we speak and we intend to start those engines by the latest February- March,” declared Mahfood.
Mahfood told CBR the plant will be used intermittently and they will still employ energy from the Jamaica Public Service Company. He added that New Fortress Energy have already put in place the storage tanks.
Chief executive officer Andrew Mahfood told shareholders that the LNG plant is one of the exciting projects that the company is implementing as part of its thrust to drive down expenses next year.
He said the management has set a target for 2020 of reducing expenses to 22 ½ per cent of cost of sales while at the same time growing net profits from 10.2 per cent to 12.9 per cent next year. Referring to the LNG Plant, the Wisynco CEO declared, “We are excited about the project and in this regard, we expect it to drive down our cost of power by four cents per kilowatt and based on the kilowatt hours that we use at Wisynco we are expecting a savings of US$1 million per year and a payback on that investment of approximately three years.”
“We are excited about the project and in this regard, we expect it to drive down our cost of power by four cents per kilowatt…we are expecting a savings of US$1 million per year and a payback on that investment of approximately three years.”Chief executive officer, Andrew Mahfood
Mahfood acknowledged that it has taken a bit longer than expected, but it’s coming to fruition. The Wisynco CEO gave details about the company’s financials for the just ended 2019 fiscal year.
During the year Wisynco achieved its highest ever sales of $28.4 billion which was 15.8 per cent higher than 2018, in which sales totalled $24.5 billion. The increased revenues translated to higher gross profits of $10.5 billion, up from $9.1 billion a year earlier.
Income from other sources grew in the period, primarily from rebates and bad debt recovered, totalling $288.7million from $92.2 million in 2018. Selling and distribution costs grew 13 per cent to $6.1 billion while administrative expenses grew 14.7 per cent to $1.1 billion.
Finance costs remained largely stable at $230.2 million. Profit after tax totalled $2.9 billion or 27.7 per cent higher than 2018. Turning to the balance sheet, Wisynco ended the year with $11.1 billion in equity up from $8.7 billion a year earlier due to increased retained earnings arising from net profits.