GULF makes a new high with a 36% profit in the first quarter
Date 12 May 2022 time 19:31
GULF shows a profit of 3,257 million baht, a growth of 36% from better IPP revenue. Including the share of profit from INTUCH, while in the year’22 invests in renewable energy projects
Ms. Yupapin Wangwiwat, Chief Financial Officer, revealed that Gulf Energy Development Public Company Limited (GULF) revealed the results of the first quarter of 2019 with total revenue ( Total Revenue) equal to 22,453 million baht, an increase of 125% from the same period last year. The main factor came from the recognition of revenue from the GSRC power plant projects, Unit 1 and Unit 2 (totaling 1,325 MW) that started commercial operation in 2021.
while the recognition of increased revenue from 12 SPP natural gas power plants under the GMP group, both from higher electricity prices in accordance with natural gas prices; and from the increased sales of electricity and steam to EGAT and industrial customers This is a result of the 12 SPP power plant project having 34.7 megawatts of new customers from the automotive, chemical, electronic components industry. and packaging
Meanwhile, GULF also recognized additional revenue from the 465 MW BKR2 offshore wind power project in Germany. The improvement in average wind speed from 9.8 m/s in 1Q21 to 11.0 m/s in 1Q22, although the average capacity factor in this quarter has decreased to 39%, compared to 41% in 1Q21. due to the limitation of the amount of electricity purchased (curtailment) by the German government
However, the BKR2 project received compensation for the limited total electricity sales volume. As if there was no curtailment taking place and therefore did not affect GULF’s revenue, GULF also recognized a share of profit from INTUCH of 1,100 million baht in Q1/22.
The gross profit from sales in the first quarter of 2022 was 4,453 million baht, an increase of 51% compared to 2,941 million baht in 1Q21. However, the gross profit margin from sales (Gross Profit Margin) in this quarter was 22.1%. Decreased from 33.1% in 1Q21 due to higher gross margins of IPP power plants, which IPP gross margins are lower than those of BKR2 wind power plants, resulting in average GULF’s gross margin declines in proportion to the increase in gross margin of the IPP power plant project.
In addition, in Q1/22, the average natural gas cost increased from 220.17 baht/million BTU in 1Q21 to 441.56 baht/million BTU in this quarter. or an increase of 101%, while the average Ft value increased by 0.1671 baht/kilowatt-hour (from -0.1532 baht/kilowatt-hour to 0.0139 baht/kilowatt-hour).
However, since GULF has a share of electricity sales to EGAT of 87%, the cost of natural gas will be passed through (pass through) in the form of electricity revenue to EGAT while having the proportion of sales. Electricity supplies only 13% to industrial customers, thus being limited by rising natural gas prices.
As for Core Profit in Q1/22, it was 3,257 million baht, an increase of 867 million baht or 36% from Q1/21, mainly due to the recognition of profits from commercially operational projects. During 2021, the GSRC Unit 1 and Unit 2 were operational in March and October 2021. Core Profit will also be increased from the recognition of increased profits from the BKR2 offshore wind power project. and from the recognition of profit sharing from INTUCH amounting to 1,100 million baht for net profit (Net Profit) attributable to the parent company in the first quarter of 2022 (including the effect of foreign exchange) equal to 3,395 million baht, an increase of 108% from 1,632 million baht in Q1/21
For GULF’s business plan in 2022, it will focus on decarbonization and digitalization. will focus on investment in renewable energy projects both domestically and internationally, such as wind power plants solar power plant including hydroelectric power plants Two hydroelectric power plants, namely the Pak Lay Project and the Pak Beng Project, signed a Tariff MOU with EGAT during January and April. and plans to sign a Power Purchase Agreement (PPA) with EGAT in the second quarter of this year. As for Digitalization, GULF has now expanded its business to Digital Infrastructure and Blockchain Technology. In the past, GULF AIS and Singtel have signed a business development contract. To jointly develop the data center business (Data Center) in Thailand, which is currently in the process of procuring the location of the Data Center and is expected to begin construction within this year.
Additionally, in April, Gulf Innova signed a shareholder agreement with Binance to jointly invest in the digital asset exchange business in Thailand. In addition, GULF has invested in the cryptocurrency exchange business in the United States (Binance US) and digital currency BNB, which is a part of the ecosystem of Binance, the world leader in Blockchain Infrastructure technology. and tokens as an alternative to future funding. And it is a market that has a lot of potential for growth in Thailand.
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