By The Nation
B GRIM chief executive 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 per cent 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 Bt1.287 billion baht with the earnings attributable to major shareholders Bt763 million.
If excluding unrealised gain on foreign exchange and other non-operating expenses, the company had a normalised net profit of Bt1.225 billion with Bt715 million baht being attributable to major shareholders. That was an increase of 69 per cent from the same period last year and 24.3 per cent from the preceding quarter.
The margin of earnings before interest, tax, depreciation and amortisation (EBITDA) rose to 28.3 per cent due to the increase in revenue from solar power plant projects.
Preeyanart noted that BGRIM signed an agreement with PetroVietnam Power Corporation of Vietnam early this month 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 87-per-cent progress made. 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 per cent from 8 per cent earlier, while megawatt contribution from its overseas projects increased to 25 per cent from 2 per cent, 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 has an acceptance letter from EGAT regarding power purchasing. All five replacement projects are under development with the scheduled commercial operation date (COD) in 2022.
EGAT has also 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.