Wigton accelerating diversification
Shareholders to vote on name change as company eyes opportunities away from wind
WIGTON Windfarm Limited is accelerating plans to diversify away from wind turbines as its only source of generating power for sale to the national grid and will put the matter of a name change in line with that ambition to its shareholders at its impending annual general meeting (AGM).
The company earlier this year registered the name Wigton Energy Limited and will now approach its shareholders to vote on it becoming the official name. The vote is to take place at its October 11 hybrid AGM, which will be held at 11:00 am by the AC Hotel Kingston.
The company is also seeking to remove articles 3, 4 and 5 or the deeply entrenched provisions from its articles of incorporation. These articles/by-laws were added prior to the company’s 2019 initial public offering (IPO) to ensure that no shareholder owned more than 10 per cent of the company for the first five years after its listing. This was also cemented through the issuance of a special share to the Accountant General of Jamaica.
The special share should have been surrendered to Wigton as a gift following the expiration of the five-year limit on April 17, 2024. This special resolution being put forward to shareholders will now seek to remove these entrenched articles as anyone can now own more than 10 per cent of the company.
These moves coincide with several significant changes to have occurred with Wigton this year. Chairman Oliver Clarke retired in January and was succeeded by Dennis Chung while Managing Director Earlington Barrett retired on March 31 and Gary Barrow appointed as chief executive officer (CEO) on May 6. Wigton currently operates a 62.7MW windfarm across 44 wind turbines in Rose Hill, Manchester.
“We launched our trading name Wigton Energy signalling a shift to a more deliberate focus on all areas of renewable energy and clean technologies with the primary objective of increasing shareholder value and profitability. The company, which now has a high percentage of its business in wind power, has set a clear trajectory to ensure its growth through diversification into other areas of renewable energy,” the 2024 annual report stated.
Barrow’s arrival as a former executive of the Jamaica Public Service Company Limited (JPS), Wigton’s sole customer, comes at a time when the company has been exploring different renewable energy opportunities. Wigton registered the Wigton-IEC Joint Venture business name in mid-2022 in collaboration with Innovative Energy Company DBA IEC SPEI Limited. That joint venture has done different solar energy projects with the latest one being a photovoltaic installation at Sangster International Airport in St James. Wigton also made an investment in an electric vehicle (EV) and charging infrastructure distributor in March 2022.
Wigton’s recent bid to produce more renewable energy in Jamaica made it to the pre-award stage alongside SunTerra Energy Jamaica Limited. That bid has a 49.83 MW solar photovoltaic (PV) project with a capacity factor of 23.46 per cent to be operated in Clarendon.
Wigton is now looking to other green energy projects, independently and with partners, which also includes promoting clean technology solutions.
For Wigton’s first quarter (April to June), the company’s revenue increase by 15 per cent to $712.15 million due to its wind turbines having a 24 per cent rise in production to 39,637,439 kWh from 93.3 per cent availability.
After accounting for higher operating costs, Wigton’s operating profit jumped 40 per cent from $225.22 million to $315.98 million. With reduced finance costs and a smaller share of loss from its associate, Wigton’s net profit rose 143 per cent to $165.81 million and an earnings per share of $0.015.
Wigton’s total assets marginally decreased during the quarter to $10.34 billion with non-current assets at $5.69 billion and cash and cash equivalents of $3.51 billion. Total liabilities and shareholder’s equity were $5.08 billion and $5.26 billion, respectively.
Wigton’s stock price closed on Wednesday at $1.01 which left it up 27 per cent in the first seven months of the year with a market capitalisation of $11.06 billion. The company has a price to earnings ratio of 11.35 times. Wigton also paid a $0.009312 dividend on Monday to its shareholders totalling $102.43 million.
Following the top 10 entry of Cacao Holdings Limited in March with a 4.8221 per cent stake, Cacao has increased its stake by purchasing an additional 18,300,336 shares to 548,727,572 shares or 4.9884 per cent. Mayberry Jamaican Equities Limited, Wigton’s largest shareholder, purchased an additional 15 million shares to take it stake to 8.6663 per cent while the VM Building Society purchased an additional 10,140,799 shares to take its interest to 8.0922 per cent. The Mayberry Investments Limited Pension Scheme also bought an extra 10 million shares in the quarter.
Wigton’s recent disclosure noted that Hurricane Beryl resulted in some wind turbines and warehouses sustaining some damage. It’s not known when the wind farm will return to normal due to some transmission lines being impacted by the hurricane.