Gulf Energy Development Plc. (GULF) reported the financial results for Q1/23 with a
total revenue of
THB 29,083 million, a 30% increase from THB 22,453 million in Q1/22 and a
core profit of THB 3,668
million, an increase of 13% Year-over-Year (YoY) from THB 3,257 million in the same period of the
previous year. The growth was primarily driven by the full operation of IPD Group’s 2,650-MW Gulf
Sriracha’s (GSRC) IPP power project, of which four units gradually commenced commercial operation in
2021-2022, while in Q1/22, GULF recognized revenue and profit from only two units from GSRC,
totaling 1,325 MW. As a result, IPD Group’s core profit was THB 1,492 million, an increase of THB
550 million, or 58% YoY.
Another factor came from GMP Group’s 12 gas-fired SPPs, which recognized higher revenue and
profit both from electricity sales to the Electricity Generating Authority of Thailand (EGAT)
and industrial users. This was mainly attributable to the higher average electricity selling
price as a result of higher natural gas prices coupled with an increase in average Ft rate for
non-residential users, reflecting the higher energy costs. The average natural gas price
increased from 441.56 THB/MMBtu in Q1/22 to 496.39 THB/MMBtu in Q1/23 while the average Ft rate
increased from 0.0139 THB/kWh to 1.5492 THB/kWh in Q1/23.
Furthermore, Gulf Chana Green (GCG) biomass power project saw an increase in profit, which
rose from THB 36 million in Q1/22 to THB 103 million in Q1/23, or a 188% YoY growth due to
lower average wood cost from 1,120 THB/ton to 963 THB/ton in this quarter. Nonetheless, GJP
Group’s share of core profit in Q1/23 was THB 428 million, a decrease of 31% YoY mainly from
the 2 gas-fired IPPs, namely, Gulf Nong Saeng (GNS) and Gulf Uthai (GUT), which received
lower Availability Payment Rates as set out in the Power Purchase Agreement.
In Q1/23, GULF also recorded share of core profit from INTUCH of THB 1,247 million, an
increase of 13% YoY from THB 1,100 million in the same quarter of the previous year,
primarily from the better performance of AIS. In addition, GULF recognized share of core
profit of THB 150 million from the gas-fired DIPWP power project in Oman, which
completed the construction of all 326 MW in January 2023. Furthermore, GULF realized a
full-quarter share of core profit from investments made in 2022, including profits from
3 wind power projects under Gulf Gunkul Corporation of THB 282 million, Thai Tank
Terminal (public terminal management project for handling liquid products) of THB 73
million, and THCOM of THB 63 million. These factors were able to offset the lower share
of profit from Borkum Riffgrund 2 (BKR2) offshore wind power project in Germany, after
GULF divested50.01% equity stake in BKR2 Holding, which is the holding company of BKR2
wind power project, to Keppel Group in December 2022. As a result, share of profit from
BKR2 project in Q1/23 decreased in line with the decrease in shareholding.
EBITDA for Q1/23 was THB 8,143 million, an increase of 15% compared to THB 7,075
million in Q1/22. Nonetheless,
EBITDA margin for Q1/23 was 28.0%, down from 31.5% in
Q1/22, mainly attributable to the lower profit from BKR2 wind power project
following the aforementioned sale of shares in BKR2 Holding in December 2022.
In Q1/23,
net profit attributable to the parent company, which takes into account
the impact of the FX rate,
was THB 3,850 million, as a result of the Thai Baht’s
appreciation against the US dollar from 34.73 THB/USD at the end of Q4/22 to
34.26 THB/USD at the end of Q1/23. Nonetheless, the recording of such
transaction is an accounting transaction that does not have an impact on GULF’s
cash flow and performance.
As of March 31, 2023, GULF had
a net interest-bearing debt to equity ratio of
1.62 times, up from 1.56 times as of December 31, 2022, due to the issuance
of new debentures valued THB 20,000 million in March 2023 for business
expansion and partial loan repayment, and loan drawdowns from financial
institutions used as working capital.
Ms. Yupapin Wangviwat, Deputy Chief Executive Officer and Chief Financial
Officer, GULF, revealed, “In 2023, the total revenue is expected to
increase by approximately 50% from the projects that are scheduled to
commence commercial operation in 2023, which is progressing as planned.
Gulf Pluak Daeng (GPD), an IPP power project under IPD Group, began the
operation of its first unit (662.5 MW) on March 31, 2023 and the second
unit (662.5 MW) will begin commercial operation on October 1, 2023.
GULF1’s solar rooftop projects are also scheduled to gradually begin
commercial operation of an additional 90-100 MW this year. Furthermore,
GULF has acquired a stake in the 1,200-MW gas-fired Jackson Generation
power plant in the United States, where it has already begun commercial
operation in May 2022. Overall, these projects will add approximately
2,900 MW to the company’s total installed power capacity portfolio in
2023.
For the business plan in 2023, GULF will prioritize investments in
renewable energy businesses in order to achieve the target to
increase the proportion of renewable energy to 40% by 2035 through
the development of hydropower projects in Laos, domestic renewable
energy projects such as solar farms, solar farms with battery energy
storage system, wind farms, and investments in wind power projects
overseas, particularly in Europe and the UK.”
Ms. Yupapin added, “Infrastructure projects in the pipeline are
still on track. The land reclamation for the Map Ta Phut
industrial port development phase 3 project is expected to be
completed in 2024, with the construction of the LNG terminal to
begin in the same year. Laem Chabang port phase 3’s F1 and F2
container berths are slated for commercial operation in 2026 and
2030, respectively. Lastly, the intercity motorway projects, M6
(Bang Pa-In – Nakhon Ratchasima) and M81 (Bang Yai –
Kanchanaburi), are scheduled to commence operation in 2025.
For the progress of the digital asset exchange business in
Thailand, in which GULF and Binance have a joint investment,
the licenses are expected to be granted within June 2023 and
the project is expected to start operations by the end of
this year. Regarding the development of the data center
business, for which GULF has partnered with Singtel and AIS,
construction will begin in mid-2023, with commercial
operations commencing in early 2025.”