Charisma Energy Services Limited: Update on Sri Lanka Flood and Landslide Situation

Key Points from the Report

• Severe Weather Event: On 28 November 2025, Cyclone Ditwah made landfall in Sri Lanka, resulting in widespread floods and landslides that affected many regions across the country.
• Impact on Operations: Charisma Energy Services Limited, which operates 13 mini-hydro power plants in Sri Lanka, reported that 12 out of 13 plants are currently operating normally. One plant remains affected, with ongoing recovery efforts to clear debris and restore full operations.
• Employee Safety: Importantly, none of the Group’s staff in Sri Lanka were harmed due to the cyclone or related incidents.
• Insurance Activation: The Group has promptly contacted its local insurer, who will conduct a site visit to assess the situation and any potential insurance claims.
• Financial Impact: Barring any unforeseen circumstances, the Company does not expect the recent disruptions to have a material impact on its financial results for the financial year ending 31 December 2025.
• Ongoing Communication: Charisma Energy Services Limited has committed to making further announcements should there be any material developments.

What Shareholders Need to Know

• Operational Disruption: While operations have largely been restored, one plant is still undergoing recovery work. Investors should note that the situation is actively being managed, and the majority of assets are functional.
• Potential Financial Repercussions: At this time, management does not anticipate a significant financial hit for FY2025 due to this event. However, the impact of the remaining plant’s downtime and any possible insurance recovery will need to be monitored as the situation evolves.
• Insurance Coverage: The involvement of the Group’s insurer is a positive indication that any material losses may be covered, though final assessments are pending.
• Commitment to Disclosure: The Board has affirmed its commitment to transparency and will update stakeholders on any new, price-sensitive developments.

Potential Share Price Impact

This update contains information that may be price sensitive for Charisma Energy Services Limited’s shares:

• Limited Operational Disruption: The fact that only one out of 13 plants remains affected—and that restoration efforts are underway—should help contain negative sentiment.
• Financial Guidance: The Company’s current guidance that FY2025 results should not be materially impacted is likely to reassure investors and limit downside risk.
• Insurance Recovery: Potential insurance claims may further cushion any losses, providing an additional layer of support for the Company’s financial position.
• Ongoing Developments: As the situation develops, especially if recovery is delayed or if the insurer’s assessment leads to unexpected news, there could be further implications for the share price. Investors are advised to monitor subsequent announcements closely.

Conclusion

In summary, Charisma Energy Services Limited has been proactive in its emergency response to the natural disaster in Sri Lanka and has rapidly restored the majority of its operations. With no staff injuries and minimal plant downtime, the Company does not anticipate a significant financial impact for FY2025. The situation remains dynamic, and both the recovery of the affected plant and the insurance assessment are key factors to watch for any future impact on shareholder value.

Disclaimer: This article is based on official announcements by Charisma Energy Services Limited as of 2 December 2025. Investors are encouraged to conduct their own due diligence and to monitor future announcements for further updates. The information herein does not constitute financial advice, nor does it represent an endorsement or recommendation to buy or sell the Company’s shares.

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