GULF posts 39% surge in Q1 profit on power, AIS growth

Gulf Development Public Company Limited, or GULF, reported its operating results for the first quarter of 2026, with total revenue of 39.041 billion baht, an increase of 21% from 32.344 billion baht in the first quarter of 2025, and core profit of 9.326 billion baht, an increase of 43% from 6.506 billion baht.

The improved operating results of the company group were mainly due to growth in the energy business, both natural gas-fired power plants and renewable energy power plants.

For the natural gas-fired power plant business, the company recognised a core profit share from the GJP group of 614 million baht in the first quarter of 2026, growing 251% from 175 million baht in the first quarter of 2025.

This was because the two IPP projects under the GJP group, namely Gulf Uthai power plant (GUT) and Gulf Nong Saeng power plant (GNS), had higher electricity sales to the Electricity Generating Authority of Thailand (EGAT), in line with the increase in the country’s overall electricity demand.

In particular, GNS had an average load factor increasing from 4% in the first quarter of 2025 to 32% in this quarter. At the same time, the seven SPP power plant projects under the GJP group had higher electricity sales to industrial customers, from higher demand among customers in several industries, including the automotive industry, electronic components, petrochemicals and chemicals, food and beverages, and textiles. The average load factor for industrial customers increased from 56% in the first quarter of 2025 to 62% in this quarter.

In addition, Gulf Sriracha power plant project (GSRC) and Gulf Pluak Daeng power plant project (GPD), which are IPP power plants under the IPD group, had higher profit compared with the same period of the previous year from higher electricity sales to EGAT. GSRC had an average load factor increasing from 55% in the first quarter of 2025 to 80% in the first quarter of 2026, while GPD had an average load factor increasing from 55% in the first quarter of 2025 to 76% in this quarter.

The company also recognised a core profit share from the Jackson Generation natural gas-fired power plant project in the United States of 208 million baht in the first quarter of 2026, which increased significantly from 30 million baht in the first quarter of 2025, due to the capacity payment increasing from US$29 per megawatt per day in the first quarter of 2025 to US$270 per megawatt per day in the first quarter of 2026.

This resulted from higher electricity demand in the Pennsylvania-New Jersey-Maryland Interconnection (PJM) market, although the amount of electricity sold in the first quarter of 2026 decreased compared with the same period of the previous year because of a longer maintenance shutdown period in this quarter.

For the renewable energy business, in the first quarter of 2026, the company recognised full-quarter profit from domestic ground-mounted solar power plant projects, or solar farms, and ground-mounted solar power plant projects combined with battery energy storage systems, or solar farms with battery energy storage systems: solar BESS, which had commercially operated an additional seven projects in late 2025, with total installed capacity of 597 megawatts.

As a result, the company currently has 12 solar farms and solar BESS projects that have gradually opened for operation, with total installed capacity of 1,129 megawatts. For the Mekong wind power plant project in Vietnam, the company reached an agreement on a new electricity tariff with Electricity of Vietnam (EVN) at 7.2 US cents per kilowatt-hour, increasing from the previous tariff that had been temporarily reduced to 3.9 US cents per kilowatt-hour.

This caused the company in this quarter to record retroactive electricity revenue from January 2024 to January 2026 in the amount of 636 million baht. In addition, the company recognised a core profit share from the Borkum Riffgrund 2 (BKR2) wind power plant project in Germany of 381 million baht in the first quarter of 2026, increasing 79% from 213 million baht in the first quarter of 2025, mainly because the average wind speed increased from 9.2 metres per second in the first quarter of 2025 to 10.3 metres per second in this quarter.

The company also recognised profit from the Gulf Chana Green biomass power plant project (GCG) of 50 million baht in the first quarter of 2026, turning around from a loss of 30 million baht in the first quarter of 2025. This was mainly due to higher electricity sales to EGAT, together with a decrease in average wood cost from 1,155 baht per tonne in the first quarter of 2025 to 668 baht per tonne in this quarter.

However, the above positive factors were offset by a decrease in core profit share from wind power plant projects under the Gulf Gunkul group. The profit share decreased 43% from 226 million baht in the first quarter of 2025 to 130 million baht in the first quarter of 2026, due to the average wind speed decreasing from 6.4 metres per second in the first quarter of 2025 to 5.0 metres per second in this quarter, together with the average wholesale Ft decreasing from 0.29 baht per kilowatt-hour in the first quarter of 2025 to 0.06 baht per kilowatt-hour in the first quarter of 2026.

For the resources business, in the first quarter of 2026, the company recognised a core profit share from the PTT NGD project of 124 million baht, decreasing 49% from 242 million baht in the first quarter of 2025, mainly due to the recognition of losses from derivative contracts as a result of higher fuel oil prices, although gross profit margin improved from natural gas costs decreasing at a higher proportion than the decrease in fuel oil prices.

The average fuel oil price decreased from US$76.4 per barrel in the first quarter of 2025 to US$74.5 per barrel in this quarter. For the natural gas procurement and transportation business under GLNG and HKH, in the first quarter of 2026, the company imported a total of 18 LNG cargoes, or around 1.2 million tonnes, resulting in the company recognising profit of 204 million baht, increasing 140% from 85 million baht in the first quarter of 2025, from higher LNG import volume and the implementation of the LNG optimisation strategy.

In the first quarter of 2026, the company recognised a core profit share from AIS of 4.461 billion baht, increasing 35% from 3.314 billion baht in the first quarter of 2025, mainly due to improved operating results of AIS from the increase in ARPU from both the mobile phone business and fixed broadband business, together with lower operating costs from lower network and spectrum costs.

Since the business merger between GULF and INTUCH was completed on April 1, 2025, the company compared the profit recognition from AIS in the first quarter of 2026 with the pro forma consolidated financial data of the first quarter of 2025, under the assumption that the new company had held shares in AIS at 40.44% since the beginning of 2025.

In the first quarter of 2026, the company had earnings before interest, tax, depreciation and amortisation (EBITDA) of 16.134 billion baht, increasing 27% compared with 12.699 billion baht in the first quarter of 2025, while net profit attributable to the parent company, including the impact from exchange rates, in the first quarter of 2026 was 9.117 billion baht, increasing 39% from 6.564 billion baht. The exchange rate weakened from 31.74 baht per US dollar as of December 31, 2025, to 32.99 baht per US dollar at the end of the first quarter of 2026.

As of March 31, 2026, the company had total assets of 820.652 billion baht, total liabilities of 442.532 billion baht and shareholders’ equity of 378.120 billion baht. The net interest-bearing debt to equity ratio stood at 0.91 times, increasing from 0.85 times as of December 31, 2025, from higher long-term debt due to the issuance and offering of debentures amounting to 35 billion baht in March.

Signals continued growth in Q2/2026

Yupapin Wangviwat, Chief Financial Officer, revealed that the company still maintains its estimate for total revenue growth in 2026 at around 10-15%, from the gradual recognition of revenue from additional capacity due to the opening of new projects. This year, the company’s power plant projects will additionally commence commercial operation with a total of around 700 megawatts.

These consist of six domestic solar farms and solar BESS projects, with total installed capacity of 623 megawatts; the Chiang Mai Waste to Energy municipal waste power plant project (CM WTE), with installed capacity of 10 megawatts; and solar rooftop projects under GULF1, which are expected to gradually supply electricity to customers by an additional 60-70 megawatts. These will help support the company’s revenue growth.

For the outlook of the company’s operating results in the second quarter of 2026, the company expects operating results to continue growing, with main supporting factors from the energy business group, both from the amount of electricity sales to EGAT, which is expected to increase in line with domestic electricity demand during the summer season, especially in April.

This is together with the strong operating results of the Jackson Generation natural gas-fired power plant project in the United States, from the capacity payment that will increase from US$270 per megawatt per day to US$329 per megawatt per day in June.

This results from higher electricity demand from data centres in the PJM market. In addition, in the second quarter of 2026, the company will recognise profit from the sale of 51% of shares in the Pak Lay hydropower plant project to J-Power of around 1.9 billion baht, including recognising dividend income received from KBANK of around 2.8 billion baht, which will help strengthen cash flow and overall operating results to be in line with the target.

The company still aims to create continuous and stable long-term growth. For the energy business, the company has plans to participate in the development of projects according to government policy, whether domestic renewable energy power plant projects to support the target of net zero greenhouse gas emissions, or natural gas-fired power plant projects to strengthen the stability of the electricity system during the energy transition.

This includes the direct PPA pilot project of around 2,000 megawatts, which is direct clean electricity trading between electricity producers and electricity users, to support rising clean energy demand from data centre business groups. In addition, the company has plans to participate in the development of community solar farm projects with total capacity of 1,500 megawatts, which the government has opened opportunities for the private sector to jointly develop in order to distribute clean electricity to households across the country.

At the same time, the company aims to expand its investment base to overseas markets with high potential, especially in Europe and the United Kingdom, together with plans to set up an office in London as a centre for managing investments and driving business expansion in Europe effectively over the long term.

Apart from growth in the energy business, the company also sees growth opportunities in the digital business through the development of full-cycle digital infrastructure, focusing on the development of hyperscale data centres and setting a target to expand service capacity to more than 1,000 megawatts within the next three to five years, alongside providing cloud services in both public cloud and private cloud formats.

This is through cooperation with leading global cloud service providers, namely Oracle, Google and Microsoft, to develop cloud services that respond comprehensively to the needs of customers, including corporate customers, SME customers, government agencies and state enterprises. In addition, the company is also expanding towards AI technology through cooperation with world-class partners such as Google, Kore.ai and Agibot, to develop digital solutions to increase operational efficiency and support the long-term growth of the digital economy.