GPSC reports its net profit of Q2/2022, growing by 118% from the previous quarter, thanks to the positive factors from the higher performance from Xayaburi Power Plant. Moreover, GPSC is optimizing the production plans and cost management in order to deal with the upcoming impact caused by rising fuel prices.

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 the company’s total revenue of Q2/2022 was 27,719 million baht, increasing by 2% compared to the first quarter of 2022 (QoQ). This resulted in a net profit of 684 million baht, rising by 118%, thanks to the increased recognized share of profit derived from Xayaburi Hydroelectric Power Plant, the better performance of small power producers (SPP) due to the adjustment of Ft charge from 1.39 satang per unit to 24.77 satang per unit during May - August 2022, and the increment of electricity and steam sales. Moreover, the company recognized profit from selling battery-related assets to NUOVO PLUS.

In addition, the Glow Energy Phase 5 power plant has already resumed its normal operation to produce electricity and steam, enabling the company to perform efficient management and deliver power to the industrial customers uninterruptedly. Consequently, the company enjoyed the higher margins in the second quarter. Meanwhile, the gross profit of independent power producers (IPP) also rose as a result of Availability Payments (AP) in Q2/2022, in which the GHECO-One power plant had fewer days of unplanned maintenance.

Referring to the company’s performance of Q2/2022, compared with the same period of prior year (YoY), the net profit fell by 70% due to the dramatic rise of natural gas and coal prices, resulting in reduced margin of electricity distribution to industrial customers and a little decreased distribution of electricity and steam. However, there was an increase in gross profit of IPP business due to higher electricity sales volume from higher dispatch instructed by EGAT resulting in higher Energy Payment (EP) and the generations using diesel instead of natural gas, resulting in higher margin from electricity sales. Also, the company obtained the increased recognized share of profit from Xayaburi Hydroelectric Power Plant according to higher water level than the same period of prior year.

According to the progress of synergy, the company recognized the synergy net value after tax at 561 million baht in Q2/2022. This is the consequence of the successful joint operations aiming to enhance the efficiency of cost management in the use of power and steam network, commercial management of production costs, expansion of customer base, and debenture management.

“Owing to the higher fuel prices in the first half of the year caused by the conflict between Russia and Ukraine, the company has closely monitored the situation of natural gas and coal prices. The company has also planned to place an emphasis on management and optimization in the production process and continue to focus on synergy for effective joint management on electricity and steam network. Not only that, the company has taken into account the generation of electricity and steam based on merit order so as to minimize the cost of production,” said Mr. Worawat.

Despite the fact that the situation of the Covid-19 epidemic is getting better, the company is still monitoring the situations closely, strictly sticking to infection control and prevention measures. This is all to facilitate the smooth production of electricity and steam as well as the stable utilities so that the company can deliver power to the customers uninterruptedly according to the contracts.

In addition for Thailand economic situation, the Bank of Thailand (BOT) revised its forecast on economic growth from 3.2% in March to 3.3% due to the economic recovery after the reopening of Thailand to promote tourism and the expansion of domestic consumption. However, it is still necessary to keep an eye on other factors, particularly the inflation that may be getting worse owing to prices of energy, products, and minimum wages. This includes the increase in Ft charge in the period of September-December 2022.

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