Colombo, Sri Lanka – 13 August 2026 – RESUS ENERGY PLC (CSE: RESU), a prominent player in Sri Lanka’s renewable energy sector, has released its interim financial statements for the first quarter of the financial year 2026/27, ending 30th June 2026. The provisional results indicate a substantial downturn in profitability compared to the corresponding period in the previous year, alongside a notable change in the company’s share capital structure.
The Group reported a profit for the period of Rs. 38.05 million, a significant 64% decrease from the Rs. 106.70 million recorded in Q1 2025/26. This decline was primarily driven by a 28% drop in revenue from contracts with customers, which fell to Rs. 266.17 million from Rs. 369.25 million year-on-year.
Group Performance Highlights: Q1 2026/27
RESUS ENERGY PLC’s consolidated performance for the three months ended 30th June 2026 showcased several key financial movements:
- Revenue from Contracts with Customers: Decreased by 28% to Rs. 266.17 million (Q1 2025/26: Rs. 369.25 million).
- Gross Profit: Followed the revenue trend, dropping by 32% to Rs. 165.59 million (Q1 2025/26: Rs. 242.89 million).
- Profit Before Tax (PBT): Saw a sharp decline of 76% to Rs. 28.95 million (Q1 2025/26: Rs. 122.81 million).
- Profit for the Period: Recorded Rs. 38.05 million, marking a 64% reduction from Rs. 106.70 million in the previous year’s first quarter.
- Earnings Per Share (EPS): Stood at Rs. 0.09, down from Rs. 0.25 in the comparative period. It is important to note that the total number of ordinary shares significantly increased from 86,184,827 as at 31st March 2026 to 430,924,135 as at 30th June 2026, which impacts per-share metrics.
The company also experienced a 14% increase in finance costs, reaching Rs. 111.60 million, which further impacted the bottom line.
Company Performance Overview
On a standalone basis, RESUS ENERGY PLC reported a loss for the period of Rs. 23.43 million for the quarter, a significant reversal from the profit of Rs. 25.36 million in the prior year. Revenue for the Company also declined by 33% to Rs. 73.14 million.
Segmental Analysis Reveals Broad-Based Revenue Contraction
An analysis of operating segments revealed that all core business areas experienced a decrease in revenue:
- Hydro Power: Revenue dropped from Rs. 221.81 million in Q1 2025 to Rs. 141.34 million in Q1 2026.
- Solar Power: Experienced a slight decrease, with revenue moving from Rs. 83.99 million to Rs. 79.60 million.
- Other Segments: Also saw a decline from Rs. 63.45 million to Rs. 45.24 million.
Financial Position and Cash Flow
As at 30th June 2026, the Group’s total assets stood at Rs. 7.44 billion, a decrease from Rs. 7.70 billion as at 31st March 2026. Total Equity attributable to equity holders of the parent increased marginally to Rs. 2.63 billion from Rs. 2.59 billion over the same period, primarily due to retained earnings growth despite the quarter’s reduced profit. Net assets per share for the Group were reported at Rs. 5.67 as at 30th June 2026, significantly lower than Rs. 27.90 as at 31st March 2026, a change largely attributable to the increase in the number of issued shares.
The Group’s net cash generated from operating activities improved to Rs. 35.23 million from Rs. 4.08 million in the corresponding quarter last year. However, net cash used in investing activities increased, primarily due to higher acquisition of property, plant, and equipment. Financing activities resulted in a net cash outflow of Rs. 301.53 million, driven by capital repayment of interest-bearing borrowings and commercial papers.
Shareholder Information and Green Bond Utilization
The interim report also provided an update on share information and the utilization of Green Bond proceeds. The number of ordinary shares outstanding increased five-fold to 430,924,135 as at 30th June 2026. The public shareholding remained at 34.69%, complying with CSE listing rules. Market prices for RESUS ENERGY PLC shares saw a decline, with the closing price at Rs. 9.10 on 30th June 2026, compared to Rs. 27.60 a year prior.
Regarding the Green Bond Issue, the company detailed the utilization of proceeds. A significant portion has been allocated to the settlement of term loans and commercial papers, as well as financing solar power plants. While most allocated funds have been fully utilized, some proceeds are temporarily held in short-term liquidity facilities pending the finalization of a Power Purchase Agreement (PPA) for the Pallekele 1MW Solar Power Plant project.
The Board of Directors and the Chief Financial Officer have affirmed the provisional financial statements, which have been prepared in compliance with Sri Lanka Accounting Standard LKAS-34 and the Companies Act No. 07 of 2007.
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