GPSC shows high record profit in Q1/2019, growing 94% with completed GLOW acquisition to run full capacity.
GPSC showed total revenue of Bt.9,067 Million Q1/2019, rising 55% and pushing net profit to reach Bt.942 Million, increasing 94% from the previous quarter. That was the record high due to the increase in revenue from the acquisition of GLOW, the dividend income from the Ratchaburi Power Company Limited (RPCL) and the operation resumption of the Sriracha Power Plant, making the company to be ready to produce power to meet rising demand in the summer season. That helped increase the company’s availability payment and would finally push the total revenue and profit for the whole year of 2019 to leap forward as there are new 4 power generating projects, which will gradually produce power into the grid.
Mr. Chawalit Tippawanich, President and Chief Executive Officer of Global Power Synergy Public Company or GPSC, the innovative power flagship of PTT Group, said the company had a total revenue of Bt.9,067 Million in Q1/2019, up Bt.3,204 Million from Q4/2018, or around 55%. Net profit reached the record high of Bt.942 Million, rising Bt.456 Million, rising 94% from Q4/2019. That was Bt.20 million rise, or around 2% compared to the same period of last year,
The rises in revenue and profit were mainly due to increasing income of Availability Payment (AP) from Sriracha Power Plant (IPP), which has resumed operation after a maintenance shutdown in Q4/2018. That has made the company to be ready to generate power to supply of the Electricity Generating Authority of Thailand (EGAT) immediately if needs during the summer season, when power demand normally peaks. Meanwhile, the company also booked additional revenue from GLOW after completion of the acquisition in March and dividend income from RPCL.
“This high record earnings of GPSC is the highest ever since the company has been founded. That reflected certain growth and strong potential due to the plan to seek for more business opportunities both domestically and internationally. Moreover, the company still seeks for new business partners for the strengthen technology and innovation to boost the company’s growth. That will increase our efficiency to meet rising power demand in industries and secure power demand for the country,” said Mr. Chawalit.
The robust net profit was due increase efficiency of GPSC to generate Normalized net profit (NNP), (NNP is the net profit attributable to the company adjusted to remove the effects of accounting standards about the “Determining whether an arrangement contains a lease” (TFRIC 4) and the “Revenue from contracts with customers” (TFRS 15), foreign exchange, and deferred tax asset. Normalized net profit clearly reflects the company's true earnings from its normal operations) in Q1/2019 worth Bt.1,053 Million, up Bt.475 Million, or 82% compared to Q4/2018 and up Bt.63 Million or 6% up compared to the same period of last year. That showed the clear vision as well as the focus of the company’s human resources, who aim at increasing operational efficiency of our power plants.
Moreover, the company is about to book new power generating capacity from 4 new power plants, which are : 1. The 65-MW Nam Lik 1 Power Company Limited (NL1PC) in Laos, which GPSC holds 40% stake and will due to start commercial operation date by this year 2. The 1,285-MW Xayaburi Power Company Limited (XPCL) in Laos, which GPSC holds 25% stake and is expected to start commercial operation date in Q4/2019 3. Central Utility Plant Project 4 (CUP 4) in Rayong with 45-MW of power and 70-ton per hour of steam, which is due to start commercial operation in Q3/2019 and 4. Nava Nakorn Elecricity Generating Company Limited (NNEG) with the capacity of 60 Megawatt of power and 10 ton per hour of steam, which GPSC holds 30% of stake and is due to start commercial operation in 2020.