The Ceylon Electricity Board (CEB) has announced record-breaking profits for the financial year 2023, as revealed in unaudited interim financial statements submitted to the Colombo Stock Exchange (CSE).
According to the statements, the CEB Group achieved an impressive profit of Rs. 75.7 billion, with the Board itself raking in Rs. 61.2 billion. The remarkable financial performance marks a significant turnaround for the utility company.
The surge in profits can be attributed to several factors, including increased rainfall from September onwards and a hike in electricity tariffs during the fourth quarter of 2023. Despite the reduction in reliance on oil and coal-based generation due to heavy rainfall, the CEB would have still reported profits of approximately Rs. 40 billion.
For the fiscal year 2023, the CEB Group reported a total revenue of Rs. 679 billion, with a gross profit of Rs. 132 billion and an operating profit of Rs. 143 billion. The reduction in distribution costs by 13.7 percent and other expenses by 15.3 percent contributed significantly to the improved financial performance.
However, there were notable shifts in financial dynamics, with finance income expanding by 29 percent while finance costs increased by 42.8 percent.
In a recent development, the Sectoral Oversight Committee on Alleviating the Impact of the Economic Crisis revealed that the CEB had significantly overestimated the cost of electricity production and transmission for the year 2024. The overestimation amounts to approximately Rs. 140 billion, raising concerns about the accuracy of future financial projections.
