B.Grimm Power Q1 revenue up 41%, holding 3 supporting factors
Dr. Harald Link, Chairman of B.Grimm and Chief Executive Officer of B.Grimm Power Public Company Limited (BGRIM) Revealed that the results of the first quarter of 2022, total revenue increased 41% from the same period last year from 1) an increase in the amount of electricity sold to industrial customers from both existing and new customers; 2) the resale price of electricity. Increased units, including 3) growing electricity sales from renewable energy power plant projects in Thailand and Lao PDR. Net profit – attributable to owners of the parent company was 23 million baht, a decrease of 96.2% from the same period of the year. before The main factor was the decline in the performance of the Industrial Power Plant (SPP) business due to the sharp rise in natural gas prices from the conflict between Russia and Ukraine while the adjustment in selling prices. gradual As a result, the margin from selling electricity to industrial customers is reduced.
However, B.Grimm Power has continued to manage costs. Both preparations for importing LNG under long-term contracts from 2023 onwards and in the first quarter of the past, the company signed a Terminal Usage Agreement with PTT LNG to control expenses throughout the organization. Expansion of electricity distribution business to industrial customers and growth from almost all major industrial customers It is estimated that the electricity purchase volume of industrial customers will grow by 10-15% this year, as well as improving efficiency in the production process. Including the construction of new power plants to replace the existing projects (SPP Replacement), all 5 projects that will start operating in the second half of the year This will reduce gas consumption by approximately 15%, improvements to the BPWHA and ABP4 plants, as well as the introduction of Digital Twins technology with Siemens to optimize plant maintenance.
from the situation of rising fuel prices from the above events The Energy Regulatory Commission (ERC) has announced the increase in electricity costs according to the formula (Ft value) 2 times, starting from 16.17 satang per kilowatt-hour in January and 23.38 satang per kilowatt-hour in May and is expected to adjust again in September. For this reason, coupled with the investment in the 88 megawatt solar power plant project of the reNIKOLA group in Malaysia. To be completed by 2022 will be a factor supporting the performance for the remainder of the year.
In terms of preparation under the assumptions of various situations, including dealing with the COVID-19 epidemic situation, B. Grimm Power has a strong financial position. with more than 26 billion baht in cash on hand. In addition, there are stable cash flows from 53 power plant projects that are already in operation. The approval to extend the debenture limit to not more than 100 billion baht in a period of not more than 5 years. (2022-2026) from the previous shareholders’ meeting and support from many financial institutions for preparation and flexibility in financial management Support business growth and investment opportunities that will come in the future
Dr. Harald Link said that this year the company has also expanded cooperation with leading partners. to expand business opportunities. In March, the company entered into a memorandum of cooperation with True Group. To cooperate in the development of digital innovations for the energy business, consisting of 1) development of digital infrastructure projects with smart energy, 2) development of innovative Smart Grid projects through 5G technology, 3) development of infrastructure and energy efficiency, and 4) development of ecosystems. New Economy and Startup Promotion in Thailand
As for the progress of projects that are under construction this year, there are many more projects, including the U-Tapao Solar Power Plant Phase 1, with an installed capacity of 18 megawatts, located in Rayong. At present, construction progress is 65%, with commercial operations scheduled for the end of 2022, and the BGPAT2 & BGPAT3 power plant project, with an installed capacity of 140 megawatts each, is scheduled for commercial operation in 2018. 2023
B.Grimm Power currently has 53 projects in operation, with a goal of having a total capacity of new projects not less than 1 gigawatt this year. both from new construction projects and acquisitions located in various countries It maintains the target of having 7,200 megawatts of power purchase contracts by 2025 and 10,000 megawatts by 2030.