GPSC announced its turnover of Q1/2022, in which the revenue increased by 64% while the net profit decreased mainly due to the rise of fuel costs, both natural gas and coal. The supporting factors from independent power producers (IPP) have enabled the company to generate more revenue and margin, and it is expecting the recognition of increased revenue after the Ft adjustment by Energy Regulatory Commission (ERC), which will be effective in May. Meanwhile, GPSC is trying to reduce its costs in a continual manner, and getting its all power plants ready to operate normally in order to accommodate the increment of power consumption after reopening the country.

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 the company's turnover of Q1/2022. The total revenue was 27,261 million baht, increased by 64% compared to the same period of last year (YoY). The net profit was 313 million baht, reduced by 73% or 855 million baht compared to that of Q4/2021 (QoQ). This is mainly due to the lowered performance of small power producers (SPP), which was caused by the sharp rise in natural gas and coal prices resulting from the Russian-Ukrainian conflict. Despite the constant distribution of electricity to industrial customers, the margin derived from this section has still decreased. The amount of steam distribution to industrial customers has gone up but the amount of electricity sold to the Electricity Generating Authority of Thailand (EGAT) has gone down slightly.

However, the company has received positive factors from the increased performance of independent power producers (IPP) which can generate more revenue and margin from the revenue recognition of the energy payment (EP) derived from the increase in the amount of electricity distribution in the system based on EGAT’s plan to claim electricity and production management using diesel fuel instead of natural gas. At the meantime, on 18 March 2022, the company also recorded the net profit recognition, after deducting the tax and related expenses of 592 million baht, from selling all shares of Ichinoseki Solar Power 1 GK (ISP1) to CES Iwate Taiyoko Hatsudensho GK.

In addition, the company has also received better returns from the synergy value from the acquisition of GLOW amounting 483 million baht (after tax). This results from the joint production management 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, production costs management and debenture management, etc.

The rise of fuel prices caused by the conflict between Russia and Ukraine has an impact on the energy prices in the world, reflecting the cost of power and steam production in the whole system. As a consequence, the Energy Regulatory Commission (ERC) announced the increase in Ft charge, base on the automatic adjustment formula, from -15.32 satang to 24.77 satang per unit. In this regard, the company has managed and optimized the production process to make the operation more efficient. Also, the company is always affirming the stability in power generation system and promising to deliver power and steam to all groups of customers uninterruptedly according to the contracts.

Mr. Worawat said, from now on, the power and steam generators in power plants will be back on operation in the production system in order to accommodate the demand of electricity in the country and in the manufacturing sector, which is expected to be heightened due to the government’s economic stimulus measures, e.g., the reopening of the country since 1 May 2022, the cancellation of Test & Go, the adjustment of Thailand pass, etc. Currently, the Glow Energy Phase 5 plant has resumed its normal operation since 9 March 2022, though just pending for some remaining insurance transactions which are expected to be recognized by 2022. Meanwhile, GHECO ONE power plant has already resumed its normal operation as well, which will help increase the company’s overall capacity of power generation.

The company keeps strengthening its business, both domestically and internationally, with cooperation in and outside PTT group. Recently, Global Renewable Synergy Company Limited (GRSC), of which the 100% shares are held by GPSC, has paid 1,875 million India rupees or 841 million baht for the shares of Avaada Energy Private Limited (AEPL). As a result, the company’s shareholding proportion of AEPL’s total capital has increased from 41.62% to 42.93%.

Furthermore, in February 2022, the Board of Directors resolved to transfer assets related to battery business to Nuovo Plus Company Limited (NUOVO PLUS), a joint venture in which 49% and 51% of shares are held by GPSC and Arun Plus Company Limited (ARUN PLUS), respectively. Thereby, GPSC will execute the sale and investment in battery manufacturing business in the future through NUOVO PLUS, for example, an energy storage unit factory with a total initial capacity of 30 MWh per year in Map Ta Phut Industrial Estate, Rayong Province and 100 percent of the ordinary shares of GPSC-SG Holding Company, Singapore, which is a subsidiary of the Company, that holds 11.1% in Anhui Axxiva New Energy Technology Co., Ltd., China, which operates a battery plant with the capacity of 1 GWh per year, including relevant contracts and other agreements. This is to accommodate the growth of EV battery business according to the government policies and the global trend of clean energy.

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