GULF enjoys continuous growth with a surge in core profit of 120% YoY in Q2/22 thanks to the gradual opening of an IPP power project and share of profit from INTUCH

August 11, 2022
GULF enjoys continuous growth with a surge in core profit of 120% YoY in Q2/22
thanks to the gradual opening of an IPP power project and share of profit from INTUCH
GULF reported excellent financial results for Q2/22 with core profit of THB 3,081 million from the commercial operation of Gulf SRC units 1-3 and share of profit from INTUCH.

Gulf Energy Development Plc. (GULF) reported the financial results for Q2/22 with total revenues of THB 24,553 million, an increase of 107% year-on-year (YoY). The growth mainly came from the revenue recognition of Gulf SRC’s (GSRC) units 1-3 (total installed power generation capacity of 1,987.5 MW), which began commercial operation in 2021 and in the first half of 2022. Another attribution is from the higher revenue of 12 gas-fired SPPs under GMP group due to higher electricity selling price, which is in line with the higher natural gas price, and higher volume of electricity sold to industrial customers, with an increase of 10% YoY. The Borkum Riffgrund 2 offshore wind power project (BKR2) in Germany also recorded higher revenue of 20% YoY with an increase in capacity factor from 21% to 24% this quarter despite being regarded as low season for wind power due to seasonality, while Q1 and Q4 are peak season with average capacity factor of 40-50%. Additionally, GULF recorded the share of profit from Intouch Holdings Public Company Limited (INTUCH) of THB 1,172 million in Q2/2022.

Gross profit from sales was recorded at THB 4,303 million in Q2/22, an increase of 62% YoY or THB 1,645 million. However, the gross profit margin declined to 19.2%, a decrease from 24% in Q2/21 due to the rise in average natural gas costs by 77% YoY, from 238.56 THB/MMBTU to 422.71 THB/MMBTU this quarter while the average Ft rate increased by 0.3230 THB/kWh (from -0.1532 THB/kWh to 0.1698 THB/kWh).

In Q2/22, GULF recorded the core profit of THB 3,081 million, an increase of THB 1,680 million or 120% YoY mainly from the profit recognition of GSRC units 1-3 which commenced commercial operation in March 2021, October 2021, and March 2022, respectively. The rise in core profit was also attributable to the share of profit of THB 1,172 million from INTUCH. Moreover, PTT Natural Gas Distribution Company Limited (PTT NGD), in which GULF jointly holds shares with PTT to distribute and supply natural gas, recorded a share of profit of THB 273 million, an increase of 332% YoY. This is the mainly attributable to the rising fuel oil price according to world market price, as the revenue structure is linked to fuel oil price.ily. We would like to thank GULF for recognizing the importance of sport and delivering great opportunities to the students of Wat Ta Kuan School.”

This quarter, GULF recorded the net profit attributable to the parent company, which includes the impact from FX rate, of THB 1,531 million, an increase of 9% YoY, compared to THB 1,407 million in Q2/21, following the baht depreciation against the US dollar by 6%, from 33.46 baht/USD in Q1/22 to 35.46 baht/USD in Q2/22. Nonetheless, the recording of such transaction is an accounting transaction, which does not impact the cash flow and performance of the company.

As of June 30, 2022, GULF had net interest-bearing debt to equity ratio of 1.89 times, a slight increase from 1.79 times at the end of March 2022. This was mainly due to drawdown of loans from financial institutions to be used as working capital.

Ms. Yupapin Wangviwat, Chief Financial Officer, GULF, revealed the company’s direction for the second half of 2022, “Currently, the progress of the company’s projects is still as planned, with the commercial operation of GSRC’s fourth unit in October this year (662.5 MW) and the gradual opening of solar rooftop projects under GULF1, which will reach 100 MW by the end of this year. In addition, GULF has acquired 50% shares with GUNKUL in Gulf Gunkul Corporation, which is a shareholder in 3 wind power projects, totaling 170 MW. As a result, the share of profit of these wind power projects will be recorded in the financial statements from Q3/2022 onwards, since all 3 projects have already started commercial operation. Therefore, GULF is confident that this year’s operating results will meet its target.”

GULF enjoys continuous growth with a surge in core profit of 120% YoY in Q2/22
thanks to the gradual opening of an IPP power project and share of profit from INTUCH
“At present, GULF is exploring several power plant projects including gas-fired power plants and renewable energy business opportunities in Europe, United Kingdom, United States and Asia, all of which are substantial projects with a power capacity of more than 1,000 MW. We expect to have more clarity on these projects by the end of this year,” Ms. Yupapin added.

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