Thailand: Solar farms drive BCPG's Q1 net profit

Thailand: Solar farms drive BCPG's Q1 net profit

BCPG Plc, the electricity-generating arm of SET-listed oil refiner Bangchak
Petroleum Plc, posted smaller year-on-year net profit growth in the first
quarter of 2017 after a restatement of financial results for the
previous-year quarter saw additional profit tacked on from the acquisition
of assets.

President and chief executive Bundit Sapianchai said the company had revenue
of 798 million baht in the first quarter of 2017, driven by rising revenue
from solar farms in Japan and those under cooperative licences at home.

Net profit totalled 454 million baht, down 25.8% from 612 million in the
same period of last year.

But year-on-year net profit in the first quarter of this year would have
been higher had BCPG not booked additional revenue from a new company it
wholly acquired in 2016.

After the restatement, 2016 net profit for the first quarter rose sharply
from the 390 million baht previously booked.

Regarding the first quarter of this year, Mr Bundit said the growth of
revenue and profit was due to the start of commercial operations at three
domestic solar farms under cooperative licences with a combined generating
capacity of 12 megawatts.

BCPG also booked rising revenue from its Naki and Nikaho solar projects in
Japan, with a combined capacity of 19.3MW.

The company's total generating capacity committed to state utilities rose to
160MW in the first quarter from 129MW a year earlier.

For its business outlook in the second quarter, BCPG expects to book more
revenue from the commercial operations of new projects in Thailand boasting
combined capacity of 130MW, as well as another 30MW in Japan.

Moreover, the Energy Regulatory Commission's approval of a higher fuel
tariff (Ft) rate -- 12.52 satang per kilowatt-hour -- is also likely to help
increase revenue in the second quarter.

The new Ft rate combined with a base factor for the May-August period means
an average increase for all categories of power users (business, residence
and public service) of 3.51 baht per kWh, up from 3.38 in the first period
(January-April).

BCPG is close to acquiring a geothermal power business in Indonesia as part
of its efforts to become a leading renewable energy company in Asia.

According to the acquisition plan, BCPG will spend 12 billion baht to buy a
stake in Star Energy Group Holdings, which operates a 995MW geothermal power
and steam production plant in Indonesia.

Mr Bundit said the acquisition process is set to be completed this quarter,
and BCPG expects to book profits immediately.

After the acquisition is complete, BCPG will indirectly hold equity in three
Indonesian geothermal power projects with an equivalent total power
production capacity of 182MW, consisting of a 20% stake in the 347MW Wayang
Windu plant, a 17.3% stake in the 377MW Salak plant and 17.3% in the 271MW
Darajat plant.

BCPG shares closed yesterday on the SET at 13.80 baht, up 10 satang, in
trade worth 154 million baht.

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

Link to Original Article:
http://www.bangkokpost.com/business/news/1243934/solar-farms-drive-bcpgs-q1-
net-profit

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

John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com