Sri Lanka is having four main rain seasons.
1. First Inter monsoon Season - March - April
2. Southwest monsoon season - May - September
3. Second Inter monsoon season - October - November
4. Northeast Monsoon season - December – February
We had a good north east monsoon season towards end of last year and in January this year, a very productive first inter monsoon season and now we are into a good southwest monsoon season. So we are experiencing three consecutive rainy seasons after several years. This will definitely benefit hydro power generation in next quarter as well. If the pattern continued into a full cycle as predicted, we may see record earnings and very attractive dividend payouts in 2013/2014.
Follow the full analysis in research section :
PAP, HPWR and VPEL are into attractive earnings.
HPWR didn't get much earnings from thermal sector in the last quarter. They did well only with hydro power segment. But in the current quarter they will have earnings from both sectors as Norochcholei is going for a 40 day maintenance from tomorrow onwards. HPWR thermal plant is the cheapest thermal plant in the country.