Thailand: GPSC profit powers up 42% in 2016

Thailand: GPSC profit powers up 42% in 2016

SET-listed Global Power Synergy Plc (GPSC), an electricity and utility
producer under PTT Group, posted a net profit of 2.7 billion baht in 2016,
up 42% from the previous year, because of additional income from the
operations of new projects.

Chief executive Toemchai Bunnag said rising revenue was attributed to
effective management and strong growth of its PTT Group clients, resulting
in increased steam and electricity sales of its central utility plants in
Rayong province.

He said this year was the first for its IRPC Clean Power Co's phase 1 to run
at full capacity, allowing the plant to generate more revenue.

The company also realised an increase in equity-based profit from Nava
Nakorn Electricity Generating Co (NNEG), which started commercial operation
in June 2016.

"We are focused on cost management of electricity and steam projects,
especially following up and seeking more opportunities in investments," said
Mr Toemchai.

For the fourth quarter of 2016, the company had total revenue of 4.5 billion
baht, down 14% from the previous quarter because the independent power
producer in Si Racha had a lower sales volume of electricity submitted to
the Electricity Generating Authority of Thailand (Egat), according to the
dispatch instruction.

The lower revenue was part of the energy payment subject to the amount of
electricity sold to Egat. However, the company still received an
availability payment from Egat as the power plant was available to supply
electricity upon Egat's demand.

As a result, net profit in the fourth quarter was 419 million baht, down 42%
from the previous quarter because the company received an equity-based
dividend from Ratchaburi Power Co Ltd in the third quarter.

Mr Toemchai said the company aims to deliver more growth in 2017, focusing
on project developments with PTT Group and its partners, both domestic and
international.

GPSC recently started its solar power project after being awarded rights to
operate a solar farm for local agricultural cooperatives by the Energy
Regulatory Commission.

The solar farm has total power- generating capacity of five megawatts and is
operated by Combined Heat and Power Producing Co (CHPP), a subsidiary of
GPSC and the Chanthaburi Solar Cooperatives.

Mr Toemchai said the project to develop CHPP Solar Cooperatives with the
Shrimp Farmers Cooperatives in Chanthaburi province started commercial
operations on Dec 30, 2016 and has been supplying electricity to the
Provincial Electricity Authority.

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Link to Original Article:
http://www.bangkokpost.com/business/news/1198197/gpsc-profit-powers-up-42-in
-2016

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com