DOMLEC powers on
DOMLEC shone in 2015 with increases in electricity sales, before tax profits, dividends payments and distribution costs
DOMLEC, Dominica's sole producer and distributor of electricity says it made EC$12.29 million profit in 2015. That's impressive given the state of the Dominican economy.
"Net profit after taxes was $12.29 million, a reduction of 17% when compared to 2014, due to a once off adjustment in deferred taxes in 2014 as a result of a reduction in the corporate tax rate," said DOMLEC chairman David McGregor in the company's 2015 annual report entitled "Rebuild. Restore. Recover."
"Through its performance, DOMLEC continued to maintain the confidence of its shareholders and lenders, which is important to ensure access to funds for future investments", McGregor said in the Chairman's Report.
DOMLEC says its profit before tax for the year ended December 31, 2015 was EC$16.84 million, compared to EC$16.52 million in 2014. Taxes for the year amounted to EC$4.55 million.
The electricity company says it sold 94.96 GWh of electricity in 2015.
"This represents an overall increase of 4.2% over 2014," the report said. "For the first eight months of 2015, the Company experienced positive sales growth of 5%. The average sales growth for the last four months of the year dropped by 2.6% and was due to the effects of Tropical Storm Erika. The increase in overall sales represents growth across all sectors, except the hotel sector which declined by 5.4%."
DOMLEC had a gross revenue of EC$ 93.54 million, reflecting a decrease of EC$ 8.37 million or 8.2% over 2014. This was mainly as a result of a decrease in fuel surcharge revenue of EC$9.84 million or 34.8%, the company said.
Total revenue from electricity sales for the year was EC$64.70 million compared to EC$62.12 million in the previous year.
Engineering and distribution expenses increased by EC$0.79 million or 12% over 2014 totaling EC$7.40 million due to restoration costs which increased by EC$0.42 million as a result of Tropical Storm Erika.
McGregor says DOMLEC played a critical role in the country's recovery after TS Erika in August 2015.
"DOMLEC's crews responded admirably, and within four days, the supply of 95% of affected customers was restored. Within three weeks, all affected customers whose installations were not compromised, were connected," the Chairman said.
For the future DOMLEC says it is shining its light on renewable energy.
"Our focus is on becoming a 100% clean and green utility by 2025," said McGregor. "DOMLEC's expansion of its sustainable energy drive was demonstrated through the introduction of an electric vehicle in its fleet, a first for Dominica".
Because of DOMLEC's outstanding performance shareholders received a total dividend payment of 40 cents per share an increase of 29% over the 2014 payment of 31 cents per share, McGregor said.