CKPower Doubles Profit in 2020 with Revenue Growth Expected to Continue in 2021

CKPower Doubles Profit in 2020 with Revenue Growth Expected to Continue in 2021

From New Investments in Renewable Energy

Effective management reaps rewards as the company envisions 10%-15% continuous growth in 2021 due to full capacity operation and new investments in renewable energy.

Mr. Thanawat Trivisvavet, Managing Director of CK Power Public Company Limited (CKPower), SET ticker “CKP”, has announced the results of CKPower and its subsidiaries’ operations in the fourth quarter and full year of 2020.  

“In 2020, CKPower gained a net profit attributable to the company’s equity holders of 404.7 million baht, increased by 212.7 million baht or 110.8% from the previous year,” he reported. “Recurring net profit (excluding one-time foreign exchange gain from Xayaburi Power Company Limited (XPCL)) was 192 million baht.”

“In the fourth quarter of 2020, the net profit was 7.8 million baht, increased by 112.1% compared with the same period in 2019.” 

“Total revenue in 2020 was 7,177.5 million baht, decreased by 1,662.7 million baht or 18.8% from the previous year.” 

“Total revenue in the fourth quarter of 2020 was 1,453.4 million baht, decreased by 655.8 million baht or 31.1% compared with the same period of the previous year.”

“Primary factors contributing to CKPower’s profitability included the power plants’ effective operations and good financial management, particularly during the period of COVID-19.” 

“In the fourth quarter of 2020, operating expenses were 1,530.6 million baht, declined by 11.4% and financial cost was 255.3 million baht, decreased by 1.8% compared with the same period of the previous year.”

“For full-year 2020, operating expenses were 6,417.5 million baht, declined by 8.6%, while financial cost was 996.4 million baht, decreased by 14.2%.” 

“Furthermore, CKPower recognised the share of profits from XPCL, which operated continuously for the entire year of 2020 for the first time. Meanwhile, Bangpa-in Cogeneration Power Plant (BIC) operated regularly without major maintenance outage and Bangkhenchai Solar Power Plant (BKC) successfully replaced some of its solar panels as planned, resulting in a 25% increase of plant efficiency.”

“Nam Ngum 2 Hydroelectric Power Plant (NN2)’s electricity sales were 920 GWh in 2020, decreased by 45.4% due to lower water level at the beginning of 2020 compared with the previous year and 6.6% lower water inflow during 2020. This caused NN2 to manage its declaration cautiously to ensure that the water level at the end of 2020 was adequate for electricity production in the first half of 2021.”

“BIC’s power plants achieved 1,538 GWh of electricity sales similar to the previous year, even though BIC-1 had a temporary outage for maintenance of one of its gas turbine units.”

“XPCL achieved electricity sales of 6,301 GWh, driven by its first full year of operation in 2020.”

“Once again, CKPower and its subsidiaries were able to deliver a profitable performance for the shareholders in 2020. This is mainly due to effective operations, maintenance management and continual emphasis on reliable delivery of electricity to fulfil the contractual obligations.”

“Moreover, the strong investment portfolio of well-diversified energy sources strongly supported successful navigation through the COVID-19 situation. In 2021, the company will continue to improve the efficiency of its operations to achieve more economies of scale going forward.” 

Mr. Thanawat also revealed that for the year 2021, CKPower has set an investment budget of 2,000-4,000 million baht to support expansion of large hydroelectric power capacity and other renewable energy projects. 

“The funding will come from a combination of proceeds from existing debentures issued during late 2020, amounting to approximately 2,000 million baht, and from newly issued debentures of 4,000-6,000 million baht. Total proceeds are expected to be sufficient to support future business expansion. Redemption of 4,000 million baht of existing debentures will mature in June 2021.” 

“CKPower is expecting 10%-15% revenue growth this year, driven by revenues from NN2 which managed to maintain a high water level at the end of last year to support this year’s production. Moreover, water flows this year are expected to be higher than last year’s for both Nam Ngum 2 and Xayaburi hydroelectric power plants.” 

“The BIC-1 and BIC-2 plants are expected to operate as normal while nine solar power plants will operate at full capacity in 2021 as well. In addition, the company plans to invest in renewable energy businesses to produce clean energy which is environmentally-friendly and this will also ensure strong and sustainable growth going forward.”

“Primary factors contributing to CKPower’s profitability included the power plants’ effective operations and good financial management, particularly during the period of COVID-19.”

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