Terra Mauricia’s turnover for 2021 increased by Rs1,47billion, to Rs6.2billion, while profits for the year stood at Rs316.7million, representing a turnaround of Rs527.1million compared to a loss of Rs210.4million in 2020.
According to its financial statement for the year ended December 31, 2021 published on the Stock Exchange of Mauritius, all Terra Group clusters posted improved results, barring the Power cluster which, despite good operational performance in 2021, had to book a substantial impairment of Rs535.9million caused by unprecedented increases in coal prices.
Overall Group results were negatively impacted by total non-recurring items of Rs394.3million made up of total impairments of Rs538.9million, but mitigated by net favourable fair value movement of Rs104.8million and profit on disposal of an associate for Rs39.8million.
Net Asset per share as at 31 December 2021 was Rs62.23 (2020: Rs59.74). Owners’ interest increased by 4.0% to reach Rs14.2billion.
IPP tug of war
Terra said coal prices reached record high levels, following the outbreak of war in Ukraine.
In the circumstances, it said its subsidiary Terragen had no other option but to declare a Force Majeure Event under the Power Purchase Agreement with the Central Electricity Board.
The parties are currently engaged in a mediation process to seek a workable solution.
The other clusters, including the main associates, are expected to post improved results for the financial year 2022.
