Industrial power producer BGrimm Power Plc (BGrim) reported a net profit of Bt1.24 billion in the third quarter, up 13 per cent from the previous quarter, the company said in a press statement.
The continued increase in BGrim’s generation capacity, a sharp 28 per cent rebound in industrial power demand from the second quarter and continuous power plant optimisation have become key drivers to the rise in profitability, Chief Executive Officer Preeyanart Soontornwata said.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) “soared with a high margin of 30.4 per cent in the quarter, while the company’s financial position was solid with more than Bt20 billion in cash on hand”, the statement said.
However, BGrim’s pursuit of “natural hedge” by borrowing in foreign currencies to curtail income risk has resulted in an unrealised foreign exchange loss of Bt310 million in the third quarter, due to the baht depreciation against the US dollar, it said.
But such items are regarded as accounting expenses that do not affect cash flow but has nevertheless depressed BGrim’s net profit in the quarter to Bt859 million, Bt501 million of which is attributed to the parent company.
For the rest of the year, BGrim expects to see its electricity sales to industrial customers continue to show an upward swing.
The amount of electricity sold to industrial customers had already bottomed out in May this year and there has been a significant recovery since then, the statement said.
Sale volumes have largely returned to normal levels in September and October.
BGrim’s projects under construction have made significant headway, the firm noted.
Ray Power’s 39-megawatt solar power project in Cambodia and the Bo Thong Wind Farm 1&2 project with an installed capacity of 16 MW are moving towards commercial start-up sometime between the fourth quarter of 2020 and first quarter of 2021.
In addition, BGrim is proceeding with seven other co-generation facilities with a combined capacity of 980 MW, which are scheduled to come on line commercially between 2022 and 2023, according to the plan.
BGrim also aims meet its targeted power sales of 7.2 gigawatts by 2025, the statement added.
Published : November 12, 2020