CK Power sees net profit soar 300% in 2013 as revenue fully realised
March 01, 2014 00:00 By The Nation 2,584 Viewed
CK Power's net profit surged 300 per cent last year as revenue from all three types of power plants it operates was recognised. The outlook for this year should also be strong with full-year revenue recognition from a co-generation power plant, it says.
Managing director Supamas Trivisavavet said CK Power reported Bt5.63 billion in revenue for 2013 operations, up 119 per cent from the Bt2.58 billion in 2012, and net profit of Bt218.88 million, an increase of 300 per cent.
Supamas attributed the high growth to the full recognition of revenue from the sale of electricity. Revenue was not fully recognised before 2013 as CK Power was still in the process of restructuring the shareholding structure in its group of companies. However, last year it could fully recognise Bt4.11 billion revenue from the Nam Ngum 2 hydroelectric plant in Laos and Bt160.33 million from the Bangken Chai solar plant.
In addition, the first phase of CK Power’s Bang Pa-in co-generation power plant commenced operations on June 28, 2013, and yielded six months’ revenue of Bt1.27 billion.
All of the power plants under CK Power’s management posted strong operating results and were able to generate electricity as planned.
As for this year’s operations, Supamas is confident that CK Power will continue to perform well, especially with a full year of revenue contribution from the Ban Pa-in plant. Meanwhile, the company will continue to improve the management of all its power plants, lower expenditures and repay loans to create attractive returns for the shareholders, she said.
CK Power is currently developing the 120-megawatt second phase of the Ban Pa-in co-generation plant, which should commence operations in 2017, and the 160MW Nam Bak hydroelectric plant, which is expected to begin operations in 2018.
Other projects are under construction by Ch Karnchang, the main shareholder of CK Power, such as the 1,285MW Chaiyaburi hydroelectric plant in Laos, which is set to begin operations in 2019.
CK Power hopes to have 2,320MW of generation capacity by 2019, an increase of 200 per cent in five years. It says it will continue to explore opportunities for new projects, both domestically and regionally, to ensure sustainable long-term business growth.