Thailand: BCPG profits suffer from stronger baht

Thailand: BCPG profits suffer from stronger baht

SET-listed BCPG Plc, the renewable power arm of mostly state-owned refiner
Bangchak Corporation Plc, posted an increase in revenue in the second
quarter of this year but the continued appreciation of the baht eroded net
profit.

BCPG president and chief executive Bundit Sapianchai said the company had
total revenue of 890 million baht, up 17.1% from the same period last year,
and up 11.5% from the previous quarter.

Net profit in the second quarter was at 462 million baht, up 1.7%
year-on-year. Had the baht not appreciated, net profits for the company
would have been 577 million baht.

"The rise in revenue in the second quarter was partially due to the start of
commercial operations of projects in Japan, which generated around 171
million baht from six projects," Mr Bundit said.

He said the company also had additional revenue from a combined 10.7
megawatts committed to state utilities, another 140 million baht from a
solar farm acquisition in Japan and 43 million from a wind farm in the
Philippines.

For the first six months of this year, the company has a net profit of 916
million baht, down 16.7% from the same period of last year, when it had a
net profit of 1.1 billion.

Mr Bundit said the company is aware of the risks incurred by fluctuations of
the baht and has planned to reduce the adverse effects of the impact in
coming quarters.

He said the company continues to expand to meet its goal to be a leading
producer of green energy, with several types of renewable energy sources.

Recently, the company has completed its process to acquire a 33.3% stake in
three geothermal power plants in Indonesia. The move is expected to help
double BCPG's power-generating capacity to be 600MW, up 50% from the same
period of last year.

For this half, the firm expects more revenue from newly-acquired power
projects in Indonesia and the Philippines to boost company revenue, Mr
Bundit said.

BCPG shares yesterday closed yesterday on the Stock Exchange of Thailand at
15.10 baht, up 20 satang, in trade worth 144.4 million baht.

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Link to Original Article:
http://www.bangkokpost.com/business/news/1304147/bcpg-profits-suffer-from-st
ronger-baht

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com