Innovative Energy Group cites $900m pipeline

Innovative Energy Group Limited (IEG) said it enters its 2027 fiscal year with about $900 million in signed contracts and letters of intent.

Not all of that pipeline will convert to revenue, but the company plans to fortify its balance sheet to take on those that convert.

“By end of the third quarter you will see a totally different balance sheet,” Executive Chairman Nigel Davy told the Financial Gleaner. He said the plan involves several measures he was not yet prepared to detail.

Total assets at $3.3 billion to May are on par with year-earlier levels. Its capital, at $1.1 billion, increased by about 10 per cent.

Davy said the pipeline includes rebuilding and completing projects. “Suffice to say, it’s a major project and it will add significantly to our top-line revenues,” he said about one project, without giving details.

In late 2023, the company secured a contract to install solar panels at the Sangster International Airport in Montego Bay. It was one of its first projects since listing on the Jamaica Stock Exchange. It also engaged in solar installation at a site for the National Irrigation Commission in St Elizabeth. Both are targeted for completion before the end of calendar 2026.

For the year to May 2026, IEG reported revenue of $339.5 million and gross profit of $129.5 million. It recorded an operating loss of $9.9 million, but fair value gains and other income lifted pre-tax profit to $112.4 million and net profit to $107.3 million.

Cash generation improved

Net cash from operating activities rose to $32 million from $20.8 million in the seven-month comparative period, and year-end cash and bank balances increased to $15.6 million from $9.4 million.

IEG said it plans to use its stronger cash generation and project book while tightening collections, working-capital management and project conversion. It is also targeting equipment distribution, operations and maintenance, electric mobility, and larger renewable-energy and battery-storage opportunities as additional growth channels.

As of May, IEG owed about $1.6 billion on a 2024 loan from a company owned by Davy and his family. That company wrote off about $100 million of the debt during the year, which added to IEG’s capital.

“We want to give the company enough breathing room to really thrive,” Davy said. “We just thought it’s prudent for us to try to rebalance the balance sheet somewhat, and that process continues.”

business@gleanerjm.com