Thailand: GPSC upbeat despite drop in net profit

Thailand: GPSC upbeat despite drop in net profit

SET-listed Global Power Synergy Plc (GPSC), an electricity and utility
producer under the PTT Group, reported a smaller profit in the first quarter
of 2017 year-on-year because of rising costs.

President and chief executive Toemchai Bunnag said GPSC posted total revenue
of 5.4 billion baht in the first quarter this year, down 2% from the same
period of last year when it had total revenue of 5.5 billion.

Net profit was 750 million baht in the first quarter, down 13.8% from 871
million.

"Compared with the first quarter of 2016, the cost of goods and services
sales this year increased by 265 million baht, or 18%," Mr Toemchai said.
"This was because of the increased use of natural gas, costing 240 million
baht, or 19%."

Maintenance costs also increased by 34 million baht, or 36%, in the first
quarter.

The dip in revenue and profit in the first quarter was largely because of a
60-million-baht decrease in dividends derived from Ratchaburi Power Plc as
well as a decline in earnings of IRPC Clean Power Phase 1, whose clients had
maintenance shutdowns.

Despite the smaller profit in the first quarter, he said the company's
business remained on the upswing as revenue and profit were higher on a
quarter-on-quarter basis.

Power demand is rising as the fuel tariff (Ft) rate increases, expected to
lend support to the company's business during the rest of this year, Mr
Toemchai said.

Total revenue in the first quarter rose 20% from the fourth quarter of last
year's tally of 4.5 billion baht, while net profit jumped 79% from 419
million baht, he said.

With the brighter business outlook, the company plans to accelerate its
electricity generation projects to match rising demand.

GPSC also wants to continue its efficient cost management and development of
new lithium-ion battery technology to expand its power business in Asean.

For the second half of this year, Mr Toemchai said electricity demand
remains strong, with power consumption expected to grow by 9.39% from the
January-April period to 68,198 million units during May-August 2017 in line
with the growing economy.

The higher Ft rate of 12.52 satang per unit to be applied for the May-August
period will result into a 3.7% increase in the standard rate to 3.5079 baht
per unit.

GPSC shares closed Friday on the Stock Exchange of Thailand at 35.50 baht,
up 50 satang, in trade worth 84.8 million baht.

--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

Link to Original Article:
http://www.bangkokpost.com/business/news/1245650/gpsc-upbeat-despite-drop-in
-net-profit

--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com