Energy Fiji Limited (EFL) has made a financial turnaround in its 2024 financial year, posting a profit after tax of $7.17 million, states it 2024 annual report that was tabled in Parliament last week.
This was a significant turnaround from the $24.8 million loss recorded in 2023.
Then EFL CEO, Hasmukh Patel states in the 2024 annual report that despite challenging market conditions and heightened volatility, EFL’s strong balance sheet and prudent cash flow management enabled the company to navigate a five-month period of financial losses while meeting debt covenants and maintaining operational stability.
EFL said its success was due to its low-cost renewable energy portfolio, a loyal customer base, and effective risk management processes.
The company’s strategic hedging program played a pivotal role, delivering a net realised gain of $4.8 million.
It said actual fuel costs for FY24 reached $211.07 million, inclusive of $4.84 million in realised hedge gains, against a budgeted $182.87 million.
“Without the hedging strategy, EFL would have faced fuel costs of $215.9 million, highlighting the program’s critical role in cost mitigation,” said Mr Patel.
“The next three to five years will bring a lot of challenges to EFL. EFL’s business will continue to be vulnerable to the changing weather pattern as a result of climate change as well as the fluctuating global fuel prices.”
“Despite having two uncontrollable factors directly affecting EFL’s day to day business, EFL will continue to adopt a robust business model to ensure that the following key objectives are achieved in the short, medium and long term.
