Hemas has a listed power sector entity, Hemas Power PLC, which operates both thermal and hydropower plants.
espite the higher revenue of Rs.2 billion, the power sector of Hemas reported an after-tax loss of Rs.520 million, impacted by a Rs.576 million impairment as the company had estimated the recoverable value of its thermal assets to fall short of their carrying value. Hemas Power operates the thermal power plant, Heladhanavi, a 100 MW joint venture with Lakdhanavi Ltd. The plant’s power purchase agreement with the Ceylon Electricity Board is scheduled to expire next year.
The government appears to have taken a decision not to renew the power purchase agreement with private thermal power producers amid concerns of relatively higher prices paid per unit.
Hemas Power operates three hydropower plants— the 2 MW Giddawa mini hydro, 2.6 MW Agar Oya mini hydro and 2.4 MW Magal Ganga mini hydro.
The company also has a 29.3 percent stake in the hydropower firm Panasian Power.
When queried on the matter, Hemas Group CEO Steven Enderby said, “I shouldn’t be commenting on market speculation.”
Hemas Power CEO Kishan Nanayakkara also refused to comment stating that only the holding company could comment on such a matter.
Meanwhile, Hemas seems to be expanding its thrust on the leisure sector in comparison to presence in the sector a couple of years back.