Kalina Power Limited has reported a striking turnaround with a net profit of $17.4 million for the half year ended December 2025, even as revenues held steady. The company declared no dividends, signaling a cautious approach amid strong financial results.
- Net profit after tax jumps over 100% to $17.4 million
- Revenues remain flat compared to previous period
- Net tangible asset backing improves from negative to 0.60 cents per share
- No interim dividend declared for the half year
- Clean auditor’s review confirms compliance and accuracy
Strong Profit Growth Amid Flat Revenues
Kalina Power Limited has delivered a remarkable financial performance for the half year ended 31 December 2025, reporting a net profit after tax of $17.4 million. This represents a significant increase of more than 100% compared to the previous corresponding period, despite revenues remaining flat. The result marks a notable turnaround for the energy company, which operates in the power generation sector.
Balance Sheet Strengthens
The company’s net tangible asset backing per share improved substantially, moving from a negative 0.09 cents to a positive 0.60 cents. This shift indicates a stronger underlying asset base and improved financial health, which could provide Kalina Power with greater flexibility for future investments or strategic initiatives.
Dividend Policy Remains Conservative
Despite the robust profit growth, Kalina Power has chosen not to declare an interim dividend for this period. This decision suggests a cautious stance, possibly reflecting management’s preference to retain earnings to support ongoing operations, development projects, or to strengthen the balance sheet further. Investors will be watching closely for any updates on dividend policy in upcoming reports.
Audit and Compliance Assurance
The half-year financial report underwent an independent auditor’s review by HLB Mann Judd, which found no issues or qualifications. The auditor confirmed that the financial statements give a true and fair view and comply with relevant accounting standards and regulations. This clean review adds credibility to the reported results and reassures stakeholders about the integrity of the company’s financial disclosures.
Looking Ahead
While the profit surge is encouraging, the lack of detailed commentary on the drivers behind the improved profitability leaves some questions unanswered. Investors will be keen to understand whether cost efficiencies, operational improvements, or other factors contributed to the earnings growth. Additionally, the company’s future capital allocation plans and potential for dividend payments remain key areas of interest.
Bottom Line?
Kalina Power’s strong profit jump sets the stage for strategic decisions ahead, but clarity on growth drivers and capital returns will be crucial.
Questions in the middle?
- What operational changes or cost savings drove the significant profit increase despite flat revenues?
- Will Kalina Power revise its dividend policy following this strong half-year result?
- How does management plan to deploy the improved net tangible asset base going forward?