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B Grimm raises operating profit on stronger revenue from power plants

Aug 13. 2018
Preeyanart Soontornwata, president of B Grimm Power Plc
Preeyanart Soontornwata, president of B Grimm Power Plc
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By The Nation

B GRIMM Power Plc has posted a 34 per cent increase in operating profit for the second quarter of this year, driven by increased revenue from new power plants and stronger energy demand.

The company’s operating profit from April to June was Bt688 million on revenue of Bt8.8 billion.

The full operation achieved by the 133MW cogeneration plant, operated by subsidiary Amata B Grimm Power (Rayong) 3 Ltd, known as ABPR 3, in the quarter following the February 1 commercial startup, was a key revenue driver.

Additional income resulting from the inauguration on June 1 of a similar facility operated by another subsidiary, Amata B Grimm Power (Rayong) 4 Ltd, or ABPR4 which is also in Amata City Industrial Estate in Rayong was another important contributor to the higher income, said Preeyanart Soontornwata, president of B Grimm Power.

However, the company declared a net profit of Bt215 million for the quarter due to an unrealised loss of foreign exchange resulting from the weakened baht.

Preeyanart stressed that such a loss was unrealised in the accounting system nor it affected the company's cashflow in the second quarter.

The firsthalf results raised B Grimm’s net operating profit by 37.3 per cent over the same period last year to Bt1.2 billion.

As a result, the company declared a dividend of 15 satang per share for the JanuaryJune operation, payable on September 7 to those who appear on the record date of August 24.

Preeyanart said the dividend payment took into account B Grimm’s operating performance of Bt1.2 billion.

Meanwhile, the company informed the Stock Exchange of Thailand that the company's board agreed to acquire an 80 per cent stake in the 257MW solar power project in Vietnam which is carried in association with Truong Thanh Viet Nam Group Joint Stock Company (TTVN).

The B GrimmTTVN group is concluding a 20year accord to sell electricity from the project to the Electricity of Vietnam (EVN) at 9.35 US cent per kWh starting next year.

The company is on course to raise its combined capacity this year by over 25 per cent to 2,091 MW from 1,646 MW last year through commissioning new power plants and acquisitions.

The second half of this year will see the company bring on line a 133MW cogeneration plant operated by subsidiary Amata B Grimm Power (Rayong) 5 Ltd; seven solar power facilities with combined capacity of 31 MW; and a 15MW hydropower project in Laos.

In addition to the increase in a stake from 49 per cent to 100 per cent in BGYSP, which is the 60MW solar power plant in Thailand, in July and the acquisition of 55 per cent stake in the 420MW solar power plant in Vietnam, B Grimm will soon announce additional investment in a couple of alternative energy projects overseas as part of its growth strategy.

The Vietnamese solar project is the largest of its kind in Southeast Asia and is scheduled to come on line in the middle of next year.

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