GPSC announces its Q3/2020 performance with profits up by 36% and expansion plan in New S-Curve business
GPSC sees a strong turnover with growing profits. An increase in electricity demand in the third quarter brought the company’s profits to 2,574 million baht, increased 678 million baht or 36% higher than the previous quarter, boosting the net profits for the first nine months of 2020 by 107% year on year. Income generated by the GPSC-GLOW synergy for the first three quarters of the year has also been recognized and the company is set to expand its investment in the New S-Curve power business of the future.
Mr. Chawalit Tippawanich, President and Chief Executive Officer of Global Power Synergy Public Company Limited or GPSC, the innovative power flagship of PTT Group, revealed that the company’s revenue in Q3/2020 was 16,601 million baht with a net profit of 2,574 million baht, an increase of 36% compared to Q2/2020 and an increase in net profit of 1,681 million baht or 188% compared with Q3/2019. The company’s revenue in the past nine months of 2020 is 53,047 million baht, an increase of 10%.
During the third quarter of this year, revenue from electricity and steam sales declined in line with natural gas prices, including GHECO-One power plant’s 8.5-day of maintenance and Glow Energy Phase 5’s downtime. However, with our operational management and lower natural costs, together with an increase of profit from Xayaburi Power Company Limited due to the rainy season and higher water level, including dividend received from Ratchburi Power Company Limited, the company still has better operating results. In addition, the key factors that contributed to the company’s strong performance for the nine-month period of 2020 were the full Q1-3 revenue recognition of GLOW while in 2019 there was only 18-day recognition in Q1/2019 and full quarter recognition in Q2/2019 and Q3/2019.
“The performance for the third quarter and the nine-month period of this year certainly reflects GPSC’s strength, which was partly due to the synergy between GPSC and GLOW. The synergy does not only create mutual benefits but also strengthens the business. Moreover, the company has initiated businesses that satisfy the demands of our clients, including demands for electricity, steam, and utilities. All these factors contributed to the company’s continuous growth in performance even in times of crisis,” said Mr. Chawalit.
The company will continue to invest more in innovations to generate income from the New S-Curve business model for future growth. The plans for the investment expansion include (1) Battery Business – The company will invest in the Semi Solid Lithium-ion battery manufacturing pilot plant with a total capacity of 30 MWh in the first phase which the first battery cell is expected to be completed in December this year. The company is coordinating with several parties to introduce the prototype for mobility and stationary purposes, such as EV bus, charging stations and other applications. After this we will consider investment expansion in the next phase. (2) Energy Storage & System Integration – The company also provides Smart Energy Storage System or ESS, which is used for efficient power storage and usage. The company has developed and implemented various projects, including a collaboration with PTT Global Chemical PCL or GC on the use of 1.5 MWh ESS to increase stability and efficiency of the power system for GC’s office buildings and the Science and Innovation Center in Rayong as well as the “smart city” pilot project of the Vidyasirimedhi Institute of Science and Technology (VISTEC) to develop new innovations or innovation platform to achieve the goal of New S-curve business, etc. and (3) Smart Energy Management – Energy management technologies will be studied, analyzed, and selected to ensure suitability with the new energy market and create future business opportunities.