Gunkul seeks more Myanmar wind projects

The SET-listed Gunkul Engineering Plc is in talks with the Myanmar government regarding two new wind energy projects, with a deal expected this year.

Managing director Somboon Aueatchasai said Gunkul signed a memorandum of understanding with Myanmar earlier this year for three other wind energy projects with combined capacity of 1,000 megawatts.

These projects are now in the machinery installation and testing stage.

Gunkul currently operates solar farms with combined capacity of 57 MW, of which 44 MW will start receiving revenue next year.

Each megawatt of solar power generates revenue of 17 million baht for a net profit of 40%.

Gunkul has aggressively expanded its renewable energy projects this year to where they will account for most of the company's net profit next year, said Mr Somboon.

Construction equipment and machinery sales will make up the rest.

Gunkul expects 2013 revenue growth of 10% from this year's estimated 4.3 billion baht.

Net profit this year will surpass 10%, with only 3-4% coming from solar farms.

Next year's revenue will receive a boost from Myanmar trading doubling to 1 billion baht.

For the first nine months of 2012, Gunkul achieved revenue of 3.77 billion baht, up by 80% year-on-year, for a net profit of 678 million, up by 698%.

The third-quarter net profit of 171 million baht compared favourably with a net loss of 25.2 million in the same period last year.

About the author

Writer: Nuntawun Polkuamdee
Position: Business Reporter