Wigton’s Q1 Earnings Benefit from Gusty Tailwinds Despite Beryl Interruption

  • Driven by strong topline growth and lower finance costs, Wigton Windfarm Limited (WIG) reported net profits of J$259.17Mn for the three-month period ended June 30, 2025 (Q1 2025), a 56.3% increase relative to Q1 2024.
  • Total revenues for the quarter were up 32.2% to J$822.23Mn primarily due to a 10.5Mn kWh or 26.6% increase in energy production. However, a decrease in other income of 23.7% partially offset revenue gains. Consequently, total revenue, sales and other income for the first quarter was $890.95Mn a 25.1% increase, when compared to the amount earned in Q1 2024 of $712.15Mn.
  • The overall topline growth came despite an average plant availability of 87.6% for the first quarter, compared to 93.3% for Q1 2024. The reduced availability was due mainly to the repairs to two (2) wind turbines following the passage of Hurricane Beryl.
  • Cost of sales grew slower than revenues, up 15.6% to J$230.48Mn. As a result, Wigton’s Q1 2025 gross profit increased by 40.0% to J$591.74Mn and its gross profit margin inched up to 72.0%, from 67.9% in Q1 2024.
  • General administrative expenses also increased by 16.1% to close at J$228.60Mn, largely due to the investment made in staff and other areas of the business as it gears up for growth through diversification. However, finance expenses for the period were 15.6% lower, as debt amortisation reduced the company’s debt and with it the cost of debt servicing.
  • Management noted that Wigton is progressing on two utility-scale solar projects totaling 70.53 MW. This includes its 49.83 MW flagship, which is advancing through contracting, land access, financing, and permitting stages. The company and SunTerra Energy received permits and financing to build 49.83 MW and 50 MW solar farms in Jamaica. Each has with 20-year licenses to supply power to the national grid by 2027. While these developments mark a significant step in its clean energy diversification strategy, execution risks such as regulatory delays and financing conditions could affect delivery and the timing of any boost to earnings.
  • Wigton is also pursuing commercial and industrial solar projects, monitoring new Requests for Proposals (RFPs), and exploring regional renewable and battery storage opportunities, though regional expansion will require competitive pricing and strong partnerships.
  • WIG’s stock price has declined by 15.1% year-to-date, closing at $1.18 as of Thursday. At this price, the stock is trading at a P/E ratio of 30.3x, which is above the Main Market Energy, Industrials and Materials Sector average of 14.7x.

(Sources: Wigton Windfarm Limited & NCBCM Research)