CKP revenue recedes as water flow dips

CKP revenue recedes as water flow dips

An aerial view of the Xayaburi hydropower plant in Laos.
An aerial view of the Xayaburi hydropower plant in Laos.

CK Power (CKP) reported lower revenue in the first half this year compared with last year because of lower water inflow at its Nam Ngum 2 hydroelectric power plant in Laos.

CKP earned a total of 3.59 billion baht in revenue during the first half this year, 1.14 billion less than the same period last year when the company earned 4.73 billion.

Mid-year electricity sales of 1.18 billion units were 618 million units lower than in 2019, a 34% decrease year-on-year from 1.80 billion units.

During the second quarter of 2020, CKP and its subsidiaries earned 1.83 billion baht in revenue, 21% lower year-on-year from 2.31 billion.

CKP managing director Thanawat Trivisvavet predicted revenue will rebound in the second half thanks to increased water flow at Nam Ngum 2 and Xayaburi hydropower plants.

"Usually our two hydropower plants would operate at maximum capacity in the third quarter because it is the rainy season. If the rainfall this year matches the average rainfall, as we expect, this year should be one of the best because it is the first full year Xayaburi is generating power," said Mr Thanawat.

"This will have positive effects on CKP's electricity generation and performance."

He said the company is negotiating a deal to acquire new power projects in Laos, which he expects to finalise this year.

As such, the company is prepared to invest 4-4.6 billion baht in these new projects and is planning to issue a corporate bond of 3.5 billion baht by the year's end.

The plan is contingent on market conditions.

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