Gulf Energy diversifying into digital sector as revenue and profits soar

Gulf Energy Development Plc has reported a 120 per cent jump in its core profit in the last quarter of 2021.
The profit of 2.72 billion baht was an increase of 1.48 billion baht, or 120 per cent, year on year.
The growth mainly came from the commercial operations of Gulf SRC’s two power generation units and a profit of 1.09 billion from the company’s shareholding in Intouch Holdings Plc (INTUCH).
In the fourth quarter of last year, Gulf recorded a net profit of 3.04 billion baht, a 65 per cent increase from 1.84 billion in the same period last year.
Gulf’s total revenue for 2021 was 52.87 billion baht, an increase of 48 per cent year on year, with a core profit of 8.81 billion, a 97 per cent jump from 2020.

The company attributed the hike in its core profit to the dividend income of 2.34 billion baht from INTUCH plus a profit share of 1.09 billion baht, as well as the commercial operation of its new power plants last year, including a gas-fired power plant in Oman and an offshore wind power project in Germany.
Gulf sells 86 per cent of its electricity to the Electricity Generating Authority of Thailand (Egat), while industrial customers account for only 14 per cent of its electricity sales.
In 2021, Gulf recorded net profit attributable to the parent company, with the impact from foreign-exchange rate taken into account, totalling 7.67 billion, an increase of 79 per cent from a year earlier.

At the end of 2021, Gulf had a net interest-bearing debt-to-equity ratio of 1.77 times, an increase from 1.47 times at the end of 2020. This was due to the drawdown of loans from financial institutions for the construction of two IPP power plant projects, GSRC and Gulf PD (GPD), with a total installed power generation capacity of 5,300 megawatts.

The company also issued debentures of 30 billion baht for partial loan repayment for its acquisition of INTUCH shares.
However, the net interest-bearing debt-to-equity ratio is still below the bond covenant level of 3.50 times, providing room for potential investments of more than 100 billion baht, the company said.

Gulf chief financial officer Yupapin Wangviwat revealed that its total revenue for 2022 is expected to grow about 60 per cent from 2021.
This was due to the commercial operation of GSRC’s third and fourth units in March and October 2022, with a total installed capacity of 1,325 megawatts, the Mekong Wind offshore wind power project in Vietnam scheduled for operation within the second quarter with an installed capacity of 128MW, and solar rooftop projects under Gulf1 with a total installed capacity of 100MW.
All the projects will increase Gulf’s gross installed capacity from 7,875MW in 2021 to 9,422MW in 2022.

Also, the company will this year record a full-year profit from GSRC’s first and second units and its Oman power plant, together with a profit share from its investment in INTUCH.
“Gulf recognises the importance of decarbonisation, which is in line with the government’s policy towards clean energy. We will, therefore, emphasise investment in renewable energy business, including hydroelectric power projects in Laos, solar farm projects and wind power projects, both in Thailand and overseas,” Yupapin said.
She also said that Gulf has expanded its business into digital infrastructure, with investment in digital transformation, such as data centre business development, cloud computing and blockchain technology businesses.
“These technologies substantially impact our daily lives and become more important in economic activities, driving the nation’s society and economy to grow exponentially as well as providing new business opportunities for the company,” the CFO concluded.