Friday, December 13, 2019

Banpu Power cashes in on high operation, distribution efficiency

Aug 14. 2019
Sutee Sukruan, CEO of Banpu Power
Sutee Sukruan, CEO of Banpu Power
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Leading power-generating company Banpu Power Pcl (BPP) has reported a net profit of Bt2.394 billion for the first half of the year.

The energy giant, which operates both thermal and renewable power businesses across the Asia-Pacific region, said operation and distribution efficiency of the Hongsa and BLCP power plants remained high and stable. 

Banpu Power recently invested in a 25-megawatt solar power plant in China, aiming to increase its renewable portfolio as targeted. 

Chief executive officer Sutee Sukruan said that in the first half of 2019, “Banpu Power maintained high efficiency and stability of power generation and distribution as targeted. Meanwhile, we are always on the lookout for new investment opportunities. Recently, we invested 189.15 million yuan (approximately Bt876 million) in the Jixin Solar Power Plant in China’s Jiangsu province. The 25MW solar power plant has achieved commercial operation date (COD) and will realise income in the third quarter.”

He said currently Banpu Power is the only power investor from Thailand able to continuously develop and expand capacity in China. 

“Overall, Banpu Power has enjoyed steady growth in alignment with our Greener and Smarter Strategy. From today to 2023, we have 2,894MW electric (MWe) equity committed capacity, of which 17 per cent is from renewables. So, we believe that by 2025, we will have achieved 4,300MWe with over 20 per cent as renewable portfolio.

Banpu Power reported total revenue of Bt1.283 billion in the second quarter from power distribution of the combined heat and power plants and solar power plants in China, a 5 per cent decrease year on year despite higher sales volume of power and steam. 

The revenue drop resulted from foreign currency fluctuation due to the weaker Chinese yuan against the baht. The total revenue from three CHP power plants was Bt1.059 billion, and Bt224 million from six solar power plants, a 6 per cent increase compared to the previous year, thanks to favourable weather and higher solar irradiation during summer.

The company realised total profit of Bt1.369 billion, up 23 per cent quarter on quarter. The Hongsa Power Plant, whose equivalent availability factor was at 86 per cent, reported Bt1.026 billion profit (including unrealised translation loss). 

The BLCP, operating at full capacity with 100 per cent EAF, reported profit share of Bt347 million (including unrealised translation loss and deferred tax gain). Five solar power plants in Japan also benefited from the favourable weather and higher solar irradiation with power sold improving by 92 per cent over the last quarter. In the second quarter, the company reported earnings before interest, tax, depreciation and amortisation of Bt1.518 billion, down 6 per cent compared to the previous quarter.

Currently, Banpu Power has a total operational capacity of 2,170MWe from the power plants that have reached COD. By the end of 2019, two more power plants will have achieved COD. The expansion of Luannan CHP Plant Phase 3 in China with a 52MW capacity will supply the higher demand for power and steam during winter. Moreover, the construction of Kurokawa, a 19MW capacity solar power plant in Japan, has progressed to 71 per cent and is scheduled for COD by the end of this year. In Vietnam, the wind power plant project Phase 1 with a 30MW capacity is in the stage of contractor selection, while Phases 2 and 3 with 30MW and 20MW capacity respectively are under the pre-feasibility study.

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