BGrim core profit leaps 54 per cent in Q1 despite global economic crisis

The SET-listed private power producer booked core profit from operations, excluding extra items, in the January-March period at Bt1.158 billion, with Bt682 million attributable to major shareholders, up 54 per cent from the previous year as revenue grew to Bt11.223 billion.

BGrim chief executive officer Preeyanart Soontornwata said the result demonstrated the company's robustness especially at the time of economic downturn aggravated by the Covid-19 pandemic.
Fuelling BGrim's first-quarter performance was the 944 megawatt (MW) incremental production capacity rendered over the past one-year circle by four projects which were brought on stream, and the acquisition of two co-generation ventures -- the SPP1 in 2019 and the 123-MW Ang Thong Power Plant in March this year.
BGrim said power sales in the first quarter remained strong, thanks to the diverse industry clientele with rising energy demand from the packaging group (up 15.1per cent), electronics sector (up 13.2 per cent), household electrical appliances (up 8 per cent), tyres (up 3.2 per cent).
There were also new industrial customers which signed up for 26MW in the past 12 months.
Meanwhile, the margin of EBITDA (earnings before interest, taxes, depreciation and amortisation) rose to the highest level of 29.2 per cent in the first quarter due to the improvement of the gas turbine power generator and the realisation of BGrim's solar energy ventures in Vietnam which offered the highest EBITDA yield, the company said.
Net profit was at Bt159 million, Bt81 million of which was attributable to major shareholders – mainly from unrealised loss primarily from the foreign exchange which was a non-cash item amounting to Bt886 million, calculated from US dollar debt and the depreciation of the baht against US dollar. 
In the wake of the Covic-19 pandemic, BGrim currently has over Bt21 billion in cash, which allows it to deal with the effects from the protracted Covid-19 crisis. At the same time, the company has also received additional working capital facilities of Bt4 billion to a total Bt9 billion from financial institutions to enhance liquidity.
BGrim has set up a team to closely monitor and respond to government policies related to the crisis.
BGrim said it has provided medical and social assistance, worth not less than Bt50 million, as well as putting in place various measures to take care of the safety of employees while maintaining the company's service quality without any layoffs.
BGrim said most of its revenue comes from long-term power purchase agreements with government agencies which are not directly affected by the Covid-19 situation.
There are still new customers coming in for the rest of the year, totalling 30MW in power purchase, the company said.
In addition, the on-going proactive cost control is expected to save Bt34 million from the extension of the lifespan of some components. The improving efficiency of gas turbines of various projects in 2019 and 2020 is expected to cut natural gas cost by not less than Bt50 million per year.
The company has under construction the 39MW Ray Power's solar project in Cambodia, the 13MW Lakchai floating solar farm and the Bowin Wind Farm 1 and two projects slated to start commercial operation between the fourth quarter of 2020 and first quarter of 2021.