Banpu Power posts 100% net profit rise in 2016 

With its strong financial status, Banpu Power has affirmed its strategic plan in operating conventional and renewable power generation businesses throughout Asia-Pacific to achieve a power generating capacity of 4,300 megawatt electrical, of which at least 20 per cent will be a renewable base, by the end of 2025. 
Voravudhi Linananda, chief executive officer of Banpu Power, said its operating results in 2016 reflected the company’s steady growth. 
The significant increase in net profit compared to 2015 came from the increasing contribution from the full commercial operations of Hongsa Power Plant in Laos since the first quarter last year.
While the solar projects in China and Japan continued to progress as planned to start their commercial operations, the company said, adding that three projects in China started commercial operations in the third quarter last year. 
In the last quarter of the year, Banpu Power’s initial public offering provided ordinary shares to all investor groups. The success has therefore assisted in generating funds for future strategic investments and growth, the company said.
Banpu Power’s share of profits from joint ventures was Bt3.51 billion last year, compared to Bt1.89 billion from the previous year and largely driven by Hongsa Power Plant’s Bt1.47 billion profit – a reversal from the Bt178 million loss in 2015. 
Subsidiary BLCP also continued to contribute a stable profit – a Bt2.06 billion – after posting Bt2.09 billion the previous year. 
BLCP’s sales revenue was Bt5.54 billion and included the first revenue from solar in China of Bt103 million. That compared to the Bt5.63 billion posted in 2015 due to a power and steam tariff adjustment from 2015 which reflected the lower coal price during the beginning of 2016. 
Banpu Power’s net profit in the fourth quarter last year also increased due to higher power and steam sales in China-based combined heat and power plants during winter.
Its earnings before interest, tax, depreciation and amortisation in 2016 was Bt5.57 billion, a 31 per cent increase on the Bt4.25 billion in 2015. 
In 2016, Banpu Power generated an equity-based power capacity of 1,934MWe. The increase of 323MWe from the previous year came from the Hongsa Power Plant and solar projects in Japan and China. 
In addition, projects that are in the development stage will be able to generate 651MWe by 2018, the company said. The Shanxi Lu Guang Power Project in China his 35 per cent built and is slated to be commercially operational by 2018. 
The Luannan CHP Plant phase two and Zouping CHP Plant phase four in China are expected to start operations in 2019 and 2020 respectively. 
The solar projects in Japan are expected to become operational in 2017-2018. 
In 2017, Banpu Power aims to ramp up the operation efficiency and stability at Hongsa Power Plant and continue the expansion of the Luannan CHP Plant and the Zouping CHP Plant as planned while ensuring that the high efficiency low emissions technology is adopted in all new coal-fired power plant projects. 
The company will seek expansion opportunities in CLMV countries (Cambodia, Laos, Myanmar and Vietnam) and new investments in the solar, wind, hydro, and biomass sectors in the countries where it operates. 
A diversified portfolio of both conventional and renewable power assets across Asia-Pacific is the company’s energy investment strategy to align with practice guidelines following the agreement reached in accordance with the United Nations Climate Change Conference.
“We continue to manage our current power plants to ensure efficient and stable operation,” Voravudhi said. “The strong cash flow will be maintained to escalate new power generation investment in various energy sources. 
“Our commitment is to ensure that all projects can achieve the company’s growth target in order to create sustainable value for shareholders and stakeholders.”
On February 23, the company’s board of director resolved to propose to its annual general meeting of shareholders this year the consideration and approval of the distribution of dividends for the performance in the second half of 2016 at Bt0.25 per share.