B Grimm Power Plc (BGRIM) reported a 101 per cent upsurge in first-quarter’s net profit, propelled largely by earnings from growing sales volume including the newly-acquired Glow SPP 1 operations.
The leading private power producer recorded Bt687 million in normalised net profits, excluding foreign exchange effects and expenses unrelated to operations, in January-March. Of this, Bt443 million is attributed to the parent.
Revenues leaped 25.8 per cent from the same period last year to Bt10.25 billion, or a 3.3 per cent increase from the last quarter of 2018, as BGRIM began to tap incremental revenue inflow from a host of power projects.
Key to BGRIM’s remarkable first-quarter revenue are contributions from three co-generation projects namely ABPR3, ABPR4 and ABPR5 in Rayong’s Amata City Industrial Estate, as well as seven ground-mounted solar-power facilities for government agencies and cooperatives – all successfully brought on stream in 2018.
Lower financial costs involving loan settlements and fewer shutdowns of power plants for maintenane also contributed to robust first-quarter financial results, according to BGRIM CEO Preeyanart Soontornwata.
BGRIM’s assuming operation of the 124MW co-generation facility in WHA Eastern Industrial Estate (Map Ta Phut), Rayong, bought from Glow SPP1 Co Ltd in February, also enhanced the company’s first-quarter bottom-line.
However, the increase in the price of natural gas, a main fuel for BGRIM power plants, has put constraints on first-quarter profitability.
Yet, there is a trend towards a drop in natural gas price from March onwards with fewer maintenance shutdowns of BGRIM power plants scheduled compared to those in the first quarter.
BGRIM’s combined installed generating capacity at the end of the first quarter this year was 2,200MW.