CKP sees Q3 net profit of Bt831.3m, plans to issue debentures

TRIS Rating gave the firm an “A/Stable” rating over its development of large power plants and expected cash flow.

CKP managing director Thanawat Trivisvavet said the performance of the firm and its subsidiaries in the third quarter was positive after the company faced a decrease in revenue in the second quarter due to lowered production capability during the dry season.

Overall, CKP earned Bt2.13 billion in revenue during the quarter, about Bt129.5 million more than the same period last year, when the company earned Bt2.001 billion, it said. The revenue growth amounts to a 6.5 per cent increase in total revenue, resulting in a third-quarter net profit of Bt831.3 million, compared to Bt33.3 million in the same period last year, an increase of Bt798 million.

This quarter’s impressive rise in revenue is due to the fact that the Nam Ngum 2 Hydroelectric Power Plant was able to generate and sell more electricity than the same period last year.

In the third quarter, the power plant generated 405.2 million units of electricity – a 35.4 per cent increase from the previous quarter when it produced and sold about 299.3 million units of electricity.

As for the water inflow, the plant experienced a 7.5 per cent increase compared to the same period last year, when the water inflow was reported at 2.22 billion-2.38 billion cubic meters.

The reported increase in net profit is partially due to the updated progress report about investment in the Xayaburi Hydroelectric Power Plant, which is now operating at full capacity.

CKP was able to sell 2.31 billion units of electricity from the Xayaburi plant, which subsequently generated Bt4.48 billion in income.

Simultaneously, the Bangpa-in Cogeneration Power Plant 1 and 2 are operating as normal, the firm said.

CKP and its subsidiaries have earned a total Bt5.72 billion in revenue in the past nine months, Bt1.007 billion, or 15 per cent, reduction compared to the same period last year mainly because of the announcement to gradually reduce and sell electricity from the Nam Ngum 2 Hydroelectric Power Plant. Hence, mid-year sales revenue in 2020 was lower than the same period last year. Additionally, revenue from the Bangpa-in plants 1 and 2 was also about 7 per cent lower this year than last year due to lower gas prices. However, the company was still able to generate Bt397 million in total profit, a Bt140 million, or 55 per cent, increase from last year, when it earned Bt257 million in total profit, the firm said.

This increase in profit is due to profit sharing from the Xayaburi plant, which was recorded at Bt231 million. The Xayaburi plant has so far this year generated revenue totalling Bt8.94 billion from selling 4.65 billion units of electricity.

Thanawat said the company is now planning to issue debentures (non-subordinated, unsecured) of no more than Bt4 billion around the end of this month in order to facilitate further operations and new power plant investment that is currently under negotiation.