BANGKOK (NNT) - B.Grimm Power Plc (BGRIM) posted the highest third-quarter normalized net profit in July-September, soaring 69% over the same period last year on revenue boost from its new solar power projects in Vietnam.
BGRIM CEO Preeyanart Soontornwata said the third-quarter profit upsurge was largely a result of significant expansion of electricity generating capacity over the past 12 months which saw 856 megawatts from 11 projects being added to its growing portfolio. Revenue rose 21% over the same period of last year.
The full quarter revenue realisation from the Dau Tieng 1 and 2 solar photovoltaic power facilities, the Phu Yen solar farm - both in Vietnam - and the Nam Che 1 hydropower plant in Laos which was brought on stream in June made an important contribution to BGRIM’s third-quarter profit.
Another contributor was the reduced fuel consumption at the company’s ABP3 co-generation plant following the gas turbine power efficiency improvement that was completed early this year.
BGRIM’s net profit from the consolidated financial statements was at 1,287 million baht with the earnings attributable to major shareholders was 763 million baht.
If excluding unrealised gain on foreign exchange and other non-operating expenses, the company had a normalised net profit of 1,225 million baht with 715 million baht being attributable to major shareholders. That was an increase of 69% from the same period last year and 24.3% from the preceding quarter.
The margin of earnings before interest, tax, depreciation and amortisation (EBITDA) rose to 28.3% due to the increase in revenue from solar power plant projects.
Mrs Preeyanart noted that BGRIM has early this month signed an agreement with PetroVietnam Power Corporation of Vietnam to study an investment in a 3,000-MW power plant using liquefied natural gas (LNG) as fuel as well as the LNG import and distribution facilities in Vietnam.
Meanwhile, construction of BGRIM’s Interchem industrial waste-to-energy project, with an installed capacity of 4.8 MW, has advanced as planned with an 87% progress. Currently underway there is construction of the drainage system piping, double layer brick wall and maintenance building and carbon black building.Commercial operation of Interchem facility is scheduled to start next month.
The proportion of renewable energy to BGRIM’s overall production capacity has now grown to 30% from 8% earlier, while megawatt contribution from its overseas projects increased to 25% from 2%, underscoring the company’s status as a leading regional energy player.
BGRIM is exploring new investment in power both at home and abroad including South Korea, Vietnam, Cambodia, the Philippines and Malaysia. Moreover, the company has been expanding solar rooftop business in Thailand, the Philippines and Oman with total secured capacities of 60 megawatt already.
As for the progress for the development of five replacement power plants in Thailand, BGRIM has secured licenses and permits for all of them as well as and acceptance letter from EGAT regarding the consideration of power purchasing already. All five replacement projects are under development process with the scheduled commercial operation date (COD) in 2022.
Meanwhile, EGAT has extended the power purchase from BGRIM’s ABP1 power plant by three years beyond the September 17 expiration of the original contract until its replacement plant is completed.
Moreover, BGRIM has been included in the "Thailand Sustainability Investment (THSI)" of the Stock Exchange of Thailand for the second consecutive year in 2019.
Such entry reflects BGRIM’s move to be a prominent world-class company which conducts business in accordance with the guidelines for sustainable development in the areas of environment, economy, society and good governance.