Thailand: B.Grimm upgrades revenue growth aim

Thailand: B.Grimm upgrades revenue growth aim

SET-listed B.Grimm Power Plc, the power-generation arm of the conglomerate,
expects 2017 revenue growth to surpass the previous forecast of 18% after a
strong first half, with additional power in the second half expected to
further boost earnings.

Executive vice-president and chief financial officer Nopadej Karnasuta said
two hydropower projects in Laos, namely Xenamnoy 2 and Xekatam 1, are due to
start commercial operations and generate revenue with a combined installed
capacity of 20.1 megawatts.

The company is confident that full-year revenue will grow by more than 18%
from last year's 2.77 billion baht. "We expect additional income in the
third quarter of this year from projects in Laos," Mr Nopadej said.

B.Grimm Power's solid performance in the first half also lent support to the
company's full-year view, he said. In the first half, the company posted
revenue of 15 billion baht, up 14.2% year-on-year.

Rising revenue in the first half was largely due to increasing
power-generating capacity of two power plants in two major industrial
estates with a combined capacity of 133MW -- Amata B.Grimm Power 5 in Rayong
and co-generation BPWHA1 at Hemaraj industrial estate.

"Rising revenue came from higher power sales to the Electricity Generating
Authority of Thailand from ABP5 and BPWHA1," Mr Nopadej said. He said the
company expects to benefit from fuel tariff rates set to rise by 2.5% in the
September-December period to 8.87 satang per kilowatt-hour.

Despite the revenue gain, net profit in the first half was flat at 1.01
billion baht, according to data from the Stock Exchange of Thailand.

Mr Nopadej said the company will continue to focus on increasing total
power-generating capacity of 2,482MW from a combined 44 power plants by
2022, up from 1,646MW from 30 power plants at present.

In 2018, B.Grimm is expected to have an additional capacity of 36MW from
solar projects after setting aside 12.5 billion baht for investment, not
including mergers and acquisitions.

Mr Nopadej said the company is in talks with a local partner in Cambodia to
develop a power project, including power transmission and power distribution
facilities for the Poipet special economic zone with an investment budget of
US$3 million (99.7 million baht). The project is expected to be competed in
February 2018.

"The internal rate of return of the Poipet project is about 15% a year," he
said.

B.Grimm is also negotiating with other Cambodian investors to expand into
five special economic zones in Cambodia, including Poipet.

"We expect five projects to start commercial operations in the next five
years," Mr Nopadej said. The company is also conducting a feasibility study
for a 2,500MW greenfield power plant, planned for Asean.

BGRIM shares closed yesterday on the SET at 19.10 baht, down ten satang, in
trade worth 297 million baht.

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Link to Original Article:
http://www.bangkokpost.com/business/news/1314847/b-grimm-upgrades-revenue-gr
owth-aim

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com