CEB's Sept. quarter profit down 98% YoY as margins erode

QoQ performance weakens on falling revenue amid steady costs

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THE Ceylon Electricity Board (CEB) has recorded a near-elimination of profit for the quarter ended 30 September, with earnings, margins, and operating performance deteriorating year-on-year (YoY) and quarter-on-quarter (QoQ) amid rising generation costs, tariff pressures, and weakening cash flows.

Interim financial statements released this week also showed the utility slipping into a Rs. 9 billion loss for the nine months to end-September, compared to a Rs. 152 billion profit in the same period of 2024.

Revenue fell 30% YoY to Rs. 321.7 billion, while cost of sales rose 1% to Rs. 322.9 billion, resulting in a gross loss of Rs. 1.2 billion compared to a gross profit of Rs. 129.2 billion a year ago.

Administrative expenses rose 20% to Rs. 10.3 billion, while net finance costs fell by half to Rs. 11.4 billion. Loss before tax for the period was Rs. 7.3 billion, compared to a profit of Rs. 153.7 billion a year earlier.

Retained losses stood at Rs. 361.5 billion on a balance sheet with Rs. 1.3 trillion in total assets. The notes to the financial statements said restructuring was underway in line with the Sri Lanka Electricity (Amendment) Act, No. 15 of 2025.

The CEB's Profit After Tax (PAT) for the September quarter fell 98% YoY to Rs. 466.5 million from Rs. 29 billion a year earlier. On a QoQ basis, profit dropped 94% from Rs. 7.4 billion in the June quarter.

Revenue for the September quarter was Rs. 120 billion, down 5% year-on-year but up 15.8% quarter-on-quarter. However, cost of sales rose 13% year-on-year and 27.7% quarter-on-quarter to Rs. 117.8 billion.

Gross profit fell to Rs. 2.4 billion, an 89% decline from a year earlier and a 79% drop from the June quarter. Operating profit declined 94% year-on-year to Rs. 2.2 billion and fell 82% quarter-on-quarter, reflecting rising administrative costs and shrinking other income.