Gunkul earmarks Bt15 billion to boost capacity
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Gunkul Engineering is setting aside Bt15 billion to fund a three-year (2015-2017) investment plan to raise production capacity to 350 megawatts and increase the listed company's profit proportion accounted for by alternative energy to 60-70 per cent by 2
Gunkul targets revenue growth of 30-50 per cent next year, much of which will come from its share in the state’s 1,000MW solar-energy project.
The company is also keen on investing in the government’s wind-energy project, chief executive officer Sopacha Dhumrong-phiyawut said yesterday.
The company plans to invest Bt15 billion from 2015 to 2017 to raise production capacity from 160MW to 350MW.
The investment will be funded by working capital of about Bt5 billion and Bt10 billion in loans from financial institutions. With a current debt-to-equity ratio of 0.8, Gunkul can bear debt of about 3 times, or even more, she said.
“The investment fund will be used to build two wind-driven power plants with 60MW capacity each, and with a total value of Bt10 billion. The two plants are expected to be completed in the first and fourth quarters of 2016.
“The remainder of the investment fund will be allocated to solar-energy projects of Gunkul and other companies. Gunkul plans to build another 50MW wind-powered plant after the completion of these two projects,” Sopacha said.
By 2017, the company hopes to see wind-power business contributing 50 per cent of its revenue and accounting for 60-70 per cent of net profit.
As to next year, Gunkul expects Bt240 billion to Bt260 billion in profit from solar-energy projects, which will contribute more to the bottom line and operating results as the capacity increases, said the CEO.
Gunkul expects to see at least 30-per-cent revenue growth next year, in view of a full-year revenue stream from the 160MW power-generation capacity.
Moreover, revenue will expand from its growing trading business, especially from new products such as LED (light-emitting diode) bulbs; power-transmission lines; and participation in the state’s 1,000MW solar projects, which are expected to be approved by March and for which construction must be completed by next December.
“Gunkul hopes to gain a 10-per-cent share of the revenue [90-100MW of generating capacity] from the remaining power-generation business with the state, and from construction contracts for other companies which obtained permits to generate power of about 100MW. If all goes as planned, Gunkul should see revenue growth of at least 30 per cent,” she said.
