Financial Performance
During the year 2011, Druk Green earned revenues of Nu. 10,948.33 million, a 7.31% decline from the 2010 revenues of Nu. 11,811.46 million. The drop in revenue was mainly on account of lower generation, increase in domestic consumption and the direct transfer of the royalty energy proceeds of Nu. 135.76 million to the Ministry of Finance as per the directives issued by the Bhutan Electricity Authority (BEA) in 2011. The Profit After Tax (PAT) also declined by 12.38% to Nu 3,933.08 million when compared to the 2010 PAT. The negative variance on PAT was also on the account of the increase in employees’ remuneration and benefits due to new recruits as Druk Green continues to build its human resources capacity to cater to the 10,000 MW projects by 2020 projects and other projects of Druk Green other than of course the much larger impact from the decline in generation and increase in domestic demand.
A summary of the Financial Performance for 2011 vis-à-vis the Financial Performance in 2010 is provided below:
Particulars
| FY 2010
| FY2011 |
Revenue (Nu.) | 11,811,463,973.75 | 10,948,330,384.34 |
Profit before tax (Nu.) | 6,486,738,329.32 | 5,638,235,521.57 |
Provision for tax (Nu.) | 1,972,107,493.89 | 1,705,148,993.04 |
Dividend (Nu.) | 3,848,969,583.27 | 3,435,635,920.93 |
Druk Green will be paying a Corporate Income Tax of Nu. 1,705.15 million for the year 2011.
The financial position of the Company, however, continues to be very strong with the Shareholder’s funds of Nu. 37,897.51 million and loans of Nu.
18,891.55 million; with debt representing 49.85 % of equity. The funds are almost entirely invested in income generating assets. The fund applications are in the form of Nu. 51,548.64 million in fixed assets (net block) including capital works in progress, Nu. 3,295.35 million in long-term investments, and the balance Nu. 1,945.08 million in net current assets.
Operational Performance
Druk Green power plants generated 7,046.57 GWh of electricity during the year 2011, a decline 0f 3.66% from the 2010 generation. The decline in generation
was on account of less inflows in the rivers as compared to the previous year with additional losses from the forced outage of Unit 1 at Chhukha Hydropower Plant (CHP) with a generator winding insulation failure (41.92 GWh) and the simultaneous forced outages of Units 1 and 2 of Tala Hydropower Plant (THP) with the failure of the thrust bearings (19.93 GWh) in the month of September 2011.
The generation from each of the plants during 2011 vis-à-vis 2010 generation is as below:
Plant
| 2010 Generation (GWh)
| 2011 Actual Generation (GWh)
| Variance (%)
|
Tala | 4,726.847 | 4,588.07 | -3.02% |
Chhukha | 1,869.557 | 1,774.43 | -5.36% |
Kurichhu | 377.691 | 361.80 | -4.39% |
Basochhu | 330.420 | 322.27 | -2.53% |
Total | 7,304.52 | 7,046.57 | -3.66% |