Jamaica’s Wigton expands diversification efforts

Jamaica-based Wigton Windfarm Limited is accelerating its plans to diversify beyond wind turbines as its sole power source for the national grid. The company intends to present a name change proposal to its shareholders at the upcoming annual general meeting (AGM).

Earlier this year, the company registered the name Wigton Energy Limited. It will now seek shareholder approval to make this its official name during the AGM scheduled for October 11 at 11:00 am, held in a hybrid format at the AC Hotel Kingston.

Additionally, Wigton is seeking to remove Articles 3, 4, and 5 from its articles of incorporation. These entrenched provisions, added before the company’s 2019 initial public offering (IPO), prevented any shareholder from owning more than 10 percent of the company for the first five years post-listing. This restriction was enforced through a special share issued to the Accountant General of Jamaica, which was to be surrendered to Wigton as a gift after the five-year limit expired on April 17, 2024. The upcoming special resolution will propose removing these articles, allowing any shareholder to own more than 10 percent of the company.

These changes align with several significant developments at Wigton this year. Chairman Oliver Clarke retired in January, succeeded by Dennis Chung. Managing Director Earlington Barrett retired on March 31, with Gary Barrow appointed as CEO on May 6. Wigton currently operates a 62.7 MW wind farm with 44 wind turbines in Rose Hill, Manchester.

“We launched our trading name Wigton Energy, signaling a shift to a more deliberate focus on all areas of renewable energy and clean technologies, aiming to increase shareholder value and profitability. The company, which currently has a high percentage of its business in wind power, has set a clear trajectory for growth through diversification into other areas of renewable energy,” the 2024 annual report stated.

Barrow’s arrival, a former executive of the Jamaica Public Service Company Limited (JPS) – Wigton’s sole customer – comes as the company explores different renewable energy opportunities. In mid-2022, Wigton registered the Wigton-IEC Joint Venture business name in collaboration with Innovative Energy Company DBA IEC SPEI Limited. This joint venture has undertaken various solar energy projects, including a recent photovoltaic installation at Sangster International Airport in St. James. In March 2022, Wigton also invested in an electric vehicle (EV) and charging infrastructure distributor.

Wigton’s recent bid to produce more renewable energy in Jamaica reached the pre-award stage alongside SunTerra Energy Jamaica Limited. This bid includes a 49.83 MW solar photovoltaic (PV) project with a 23.46 percent capacity factor, to be operated in Clarendon.

Wigton is pursuing other green energy projects, both independently and with partners, including promoting clean technology solutions.

In the first quarter (April to June), Wigton’s revenue increased by 15 percent to $712.15 million, driven by a 24 percent rise in wind turbine production to 39,637,439 kWh with 93.3 percent availability. After accounting for higher operating costs, operating profit jumped 40 percent from $225.22 million to $315.98 million. With reduced finance costs and a smaller share of loss from its associate, net profit rose 143 percent to $165.81 million, resulting in earnings per share of $0.015.

Wigton’s total assets slightly decreased during the quarter to $10.34 billion, with non-current assets at $5.69 billion and cash and cash equivalents at $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, up 27 percent in the first seven months of the year, with a market capitalization 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, totaling $102.43 million to shareholders.

Following the top 10 entry of Cacao Holdings Limited in March with a 4.8221 percent stake, Cacao has increased its stake by purchasing an additional 18,300,336 shares, bringing its total to 548,727,572 shares or 4.9884 percent. Mayberry Jamaican Equities Limited, Wigton’s largest shareholder, purchased an additional 15 million shares, increasing its stake to 8.6663 percent. The VM Building Society bought an additional 10,140,799 shares, raising its interest to 8.0922 percent. The Mayberry Investments Limited Pension Scheme also purchased an extra 10 million shares during the quarter.

Wigton’s recent disclosure noted that Hurricane Beryl caused some damage to wind turbines and warehouses. The timeline for the wind farm to return to normal operations is unclear due to the impact on transmission lines.