Charisma Energy Services Secures 20-Year Solar Power Contract in Sri Lanka, Expanding Renewable Portfolio to 48MW

Key Highlights for Investors

• Charisma Energy Services Limited (“Charisma Energy”) has announced its wholly-owned subsidiary, Jericho Solar (Pvt) Ltd, has signed a 20-year Standardised Power Purchase Agreement (SPPA) with the Ceylon Electricity Board (CEB), Sri Lanka’s state-owned utility.
• The agreement covers the supply of electricity from a 5.0 megawatt ground-mounted solar photovoltaic plant to be built, tested, and commissioned within 12 months (with a further 1 month to reach commercial operation), targeting commercial operation in Q4 2026.
• This project will boost the Group’s total renewable energy portfolio to 48.0 megawatts, marking a significant milestone following the company’s restructuring on 16 June 2025.
• Charisma Energy is actively evaluating additional green projects in Sri Lanka, signaling a continued commitment to regional expansion and clean energy growth.

Detailed Analysis: Strategic Impact and Investor Considerations

Charisma Energy’s entry into the Sri Lankan renewable energy market comes after a pivotal corporate restructuring, positioning the company to aggressively pursue growth in the sector. The SPPA with CEB not only adds 5.0MW of solar capacity but also demonstrates the company’s ability to secure long-term, government-backed contracts in emerging markets.

The SPPA requires Jericho Solar (Pvt) Ltd to complete construction, testing, and commissioning of the solar facility and transmission line within 12 months from contract signing, followed by a one-month period to achieve commercial operation. The project’s timeline puts the expected operational date in the fourth quarter of 2026.

Financial Impact: For the financial year ending 31 December 2025, the deal is not expected to materially affect earnings per share or net tangible assets per share, given project completion is targeted for Q4 2026. However, upon completion, the long-term revenue visibility and portfolio growth could have positive implications for future financial periods and shareholder value.

Price-Sensitive Considerations:

• The agreement represents a concrete step in the Group’s post-restructuring strategy to expand its renewables portfolio, now reaching 48MW capacity, which could enhance its appeal to ESG-focused investors and institutional funds.
• The company cautions shareholders on the uncertainties and risks involved, emphasizing that there is no guarantee regarding the future success or profitability of the SPPA at the time of announcement.
• Further announcements may be made on new green projects under evaluation in Sri Lanka, which could represent additional catalysts for value creation and potential share price movements.
• There are no conflicts of interest disclosed among directors or controlling shareholders vis-à-vis the SPPA, ensuring governance transparency.

What Should Shareholders Watch?

• Progress on project milestones, especially as the commercial operation date approaches in Q4 2026.
• Any subsequent announcements regarding new project commitments or material developments in Sri Lanka or other markets.
• Potential changes in the company’s earnings profile post-project completion and integration into the operational portfolio.
• Broader industry or regulatory developments in Sri Lanka’s power sector that could affect project economics or risk profile.

Trading Caution

Investors are advised to exercise caution when trading Charisma Energy shares. While the SPPA marks a strategic win, its actual financial impact will be realized only upon successful execution and operation of the plant. The company will continue to provide updates on this and other potential projects, and shareholders should consult professional advisors if uncertain about their investment decisions.

Disclaimer

This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell securities. Investors should conduct their own due diligence and consult with financial professionals before making investment decisions. The information herein is based on company announcements and may be subject to change or updates.

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