TPIPP announces interim dividend, same amount as last year and beats market’s expectation

TPIPP has a better performance in the first half of 2023 than in first half of 2022, contrary to what most analysts has anticipated. Additionally, TPIPP focuses on modifying all of its power plants to be clean and green renewable power plants, on its journey to become carbon-free power plants.   

TPI Polene Power Public Company Limited or TPIPP has declared that the company will pay 0.12 baht per share, as interim dividend.  This payment is from a strong performance in the first 6 months from January 1st – June 30th 2023. Eligible shareholders, who are entitled to receive the dividend, are as of September 14th, 2023, and the dividend will be paid on September 25th, 2023. TPIPP attains a net profit of 1.981 billion baht the first half of 2023 up from 1.710 billion baht in first half of 2022, an increase of 15.85%. The total amount of interim dividend paid is 1.008 billion baht, which is 50.87% of the net profit.     

Pakkapol Leopairut, Executive Vice President (EVP) of TPIPP stated that the fact that TPIPP will pay interim dividend for the first half of 2023 (at 0.12 baht per share) the same amount as in 2022 beats market’s expectation, which believe the dividend to be lower. This is due to the fact that the company’s performance, such as total revenue, net profits and other key indexes, shows that the company’s profit is constantly increasing.  This increase is despite the fact that TPIPP’s power purchase agreement or PPA that receive added price or “Adder” has declined from 163 MW to 90 MW.

“The company’s “Adder” has dwindled down from three PPAs to one PPA, while the company is still able to sell electricity at the base price with the two adder-expired PPAs. Interestingly, after the expiration of the “Adder” in two PPAs, the company’s performance actually improves. The improvement totally contradicts the market’s expectation, which affront that the company’s profit will decrease. The increase in profits is attributed to the transformation of the coal-fired power plant to become waste power plant, with TPIPP’s “Journey to Net Zero” program. The price of the raw material of the waste power plant is less volatile than that of coal and other fossil fuels. Moreover, TPIPP’s determination to modify all of its power plant to be renewable energy within 2026 coincides with the company’s emphasis on ESG for a better world. “Journey to Net Zero” program is helpful in both lowering the cost of raw material and helping the environment.” said Pakkapol.