Energy Fiji Limited (EFL) has reported a remarkable financial recovery for the fiscal year 2024, achieving a profit after tax of $7.17 million, as outlined in its recent annual report presented to Parliament. This represents a significant improvement from the $24.8 million loss recorded in 2023.
Hasmukh Patel, the company’s CEO, explained that EFL’s ability to navigate through a five-month period of financial losses was made possible due to its strong balance sheet and effective cash flow management. The report attributes EFL’s turnaround to its low-cost renewable energy initiatives, strong customer loyalty, and sound risk management strategies. A strategic hedging program played a crucial role, generating a net realised gain of $4.8 million, which mitigated fuel costs.
In FY24, EFL’s fuel costs amounted to $211.07 million, which included gains from hedging, but still exceeded the budgeted amount. Without the hedging strategy, EFL would have faced even higher costs, highlighting the importance of such financial measures for cost management.
Looking ahead, Patel cautioned that EFL will face numerous challenges over the next three to five years, notably due to climate change and fluctuating global fuel prices, which directly impact operations. However, the company remains committed to maintaining a resilient business model to achieve key short, medium, and long-term objectives.
This encouraging turnaround showcases not only EFL’s ability to recover from past adversities but also emphasizes the role of strategic risk management in sustaining operations and protecting against future uncertainties. EFL’s future strategies include a focus on renewable energy initiatives which are expected to play a significant part in their ongoing growth and resilience in the energy sector.
Hope remains as EFL continues to enhance its service reliability and expand its renewable energy portfolio, aligning with Fiji’s broader economic growth while contributing to sustainability goals essential for the future.
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