GPSC sees growth in revenue of 8% in 2021, with the main contributor being an increase in the sale of electricity and steam to industrial clients, while the net profit fell slightly by 3% due to the higher fuel costs worldwide. However, the value of the synergy of THB 1,633 million was recognized, exceeding the projected performance, and the Board of Directors has approved a dividend payment for the second half of 2021 at the rate of THB 1.00 per share accordingly. As for the outlook for 2022, electricity demand is likely to expand in line with economic recovery while the government is aggressively promoting IPP and SPP replacement projects as well as pushing for more VSPP renewable energy generation.

Mr. Worawat Pitayasiri, President and Chief Executive Officer of Global Power Synergy Public Company Limited or GPSC, the innovative power flagship of PTT Group, revealed that in 2021 the Company’s revenue was THB 74,874 million, up by 8% from 2020, with a net profit of THB 7,319 million, down by 3% from 2020. The higher fuel costs globally have raised the prices of natural gas and coal, leading to a decline in the gross profit from Small Power Producer (SPP) despite a rise in combined sales of electricity and steam. The outage at the Glow Energy Phase 5 power plant has also incurred repair costs even with partial insurance coverage, and the facility will resume normal operations in this February.

In addition, gross profit from Independent Power Producers (IPP) went down as a result of the GHECO-One plant’s maintenance, leading to lower Availability Payment (AP). However, the Company received higher shares of profit from Xayaburi hydropower plant of THB 702 million due to larger quantity of water in generating capacity compared to 2020.

“In 2021, the net worth after taxes of THB 1,633 million from the synergy was also recognized, a greater achievement than planned. The success was largely due to the synergized electricity and steam production and networking that allow for more efficient management of production costs, client base expansion, procurement, and maintenance work,” said Mr. Worawat.

With regard to the Company’s performance in the fourth quarter of 2021, the total revenue was THB 22,019 million, up by 33% YoY, with a net profit of THB 1,168 million, down by 20%. The decline was mainly due to the higher costs of natural gas and coal, which have lowered the gross profit of SPPs. Meanwhile, IPPs have seen an increase in profit from higher Availability Payment (AP) due to weaker Thai Baht currency. The Company also recognized higher revenue from Energy Payment (EP) from the Sriracha Power Plant and GLOW IPP due to a rise in electricity sales and distribution to the Electricity Generating Authority of Thailand (EGAT). Revenue from partial insurance coverage for the Glow Energy Phase 5 power plant was also recognized in the fourth quarter.

In addition, GPSC’s Board of Directors has approved a dividend payment for 2021 at a rate of THB 1.50 per share, accounting for approximately 58% of the consolidated net profit. Payment of interim dividend for the Company’s operating results for the first half of 2021 at THB 0.50 per share was made on September 22, 2021. The Record Date for specifying the list of shareholders entitled to receive the dividend payment for the second half of 2021 turnover at THB 1.00 per share was set for February 25, 2022 (XD on February 24, 2022), and payment will be made on April 20, 2022, following approval at the 2022 Shareholders Annual General Meeting.

According to Krungsri Research’s electricity demand outlook for 2022, the power industry is likely to see sustained growth with an average growth rate of 3.6% per year, in line with the gradually recovering economy and the government's investment promotion policy under the country’s Power Development Plan (PDP). The plan aims to encourage expansion of power generating capacity and investments in additional power plants in the following three core areas. (1) IPPs – replacement projects are planned for natural gas power plants whose power purchase agreement will expire between 2025 and 2027; (2) SPPs – SPP replacement projects are planned for facilities whose power purchase agreement will expire between 2019 and 2025. Expansion of power generating capacity will also be encouraged to support new investments in the Eastern Economic Corridor (EEC); and (3) Very Small Power Producers (VSPP) – through the government’s support, continuous development has been achieved, including the "Solar PV Rooftop" scheme, and power plants fueled by biomass, biogas, and waste.

“Throughout 2021, stringent COVID-19 prevention and control measures were vigorously imposed by GPSC’s G-COVID Center to ensure power and steam production stability and uninterrupted supplies for our clients, and the COVID-19 measures continue to be in place in 2022,” added Mr. Worawat.

Share this News: