GPSC's 2020 profits up by 85% with higher dividends despite the COVID-19 crisis, set for New S-Curve business expansion in 2021 with the opening of an energy storage unit production plant in Q2.
GPSC sees a strong turnover with growing profits of THB 7,508 million, an increase by 85% despite the COVID-19 crisis, thanks to GLOW’s revenue, which has been recognized for the whole year for the first time since the merger. In addition, GPSC also announces dividend payment of THB 1.50 per share from the 2020 operating results, with the XD (Excluding Dividend) sign posted on March 3, 2021. The start of 2021 sees the company gear up for the New S-Curve business and the opening of an energy storage unit production plant in Q2/2021.
Mr. Worawat Pitayasiri, 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 net profit was THB 7,508 million, increased by THB 3,447 million or 85% from 2019 mainly from full year recognition of results from GLOW in 2020, lower average natural gas and coal price causing the Company’s better operating results, especially SPP business which has higher margin from electricity sold. Finance costs decreased mainly due to the capital restructure which the Company has completed the Right Offering (RO) process in Q4/2019 and short-term loan repayment from GLOW acquisition completed in March 2020. Besides, the Company's non-operating income increased from dividend received and shares of profit of associates and joint ventures. The Company also recognized synergy value from the merger of GLOW amounting THB 701 million which mainly from electricity and steam network integration.
As for the company’s performance in the fourth quarter of 2020, the net profit was at THB 1,813 million, up by 19% YoY, mainly due to the drop in natural gas and coal prices and lower financial cost. When comparing to Q3/2020, net profit decreased by 43% mainly from gross profit of IPP decreased due to the USD-linked portion of AP decreased as THB appreciation together with lower AP from GIPP as the Contracted Availability Hour (CAH) was reached at the early of December 2020. Besides, an increase of maintenance expenses from planned maintenance of Glow SPP 3 and 11 an unplanned outage of Glow Energy Phase 5.
GPSC announces 2020 dividend payment, at the rate of THB 1.50 per share, or approximately 56% of the net profit of consolidated financial statements. On September 14, 2020, the interim dividend for the first half of 2020 was paid at the rate of THB 0.50 per share. Therefore, the Company will pay the remaining dividend for second half of 2020 performances at THB 1.00 per share. Accordingly, the Record Date to entitle rightful shareholders to attend 2021 Annual General Shareholders’ Meeting (2021 AGM) and to receive the dividend will be on March 4, 2021 (XD on March 3, 2021) and the dividend payment date will be on April 21, 2021, after the approval from the 2021 AGM.
“Amid the COVID-19 outbreak, which has been going on since the end of 2020, maintaining stability has been the company’s priority to ensure stable electricity and steam generating system and uninterrupted delivery of electricity to our industrial clients. This has been done through enhancing safety measures for our employees, especially those in charge of production control and operations, which we have succeeded in that we were able to effectively meet the demand for electricity, steam, and utility,” said Mr. Worawat.
Regarding the company’s business strategy for 2021, as the innovative power flagship of PTT Group, the focus will be on investment in energy innovation, especially in the New S-Curve business, in order to be prepared for the changes in the electric power business in the future. This has been reflected by the company’s success in producing the first made-in-Thailand semi-solid G-Cell battery, using the technology from 24M Technologies, at the end of 2020. It is expected that the company’s energy storage unit production plant with a capacity of 30 MW per hour will be ready for production by the second quarter of 2021.