BGRIM posts B14.67bn earnings in Q2

BGRIM posts B14.67bn earnings in Q2

A bird's-eye view of one of BGRIM's power plants in Thailand.
A bird's-eye view of one of BGRIM's power plants in Thailand.

SET-listed B.Grimm Power Plc (BGRIM) recorded revenue of 14.6 billion baht in the second quarter of 2022 from higher electricity tariffs, increased sale volumes and contributions from renewals in Laos and Thailand.

However, BGRIM's normalised net profit attributable to the parent company contracted 85.5% from the same period last year to 147 million baht, mainly due to a 76.6% jump in natural gas prices.

As a result, this puts significant pressure on industrial clientele which contributed 20.7% to BGRIM's gross receipts, though the normalised net profit soared 332.4% compared to the previous quarter due to a 4.6% easing in natural gas prices and an increase in the Ft variable cost factor.

The sharp depreciation of the baht has also resulted in an unrealised foreign exchange loss.

Herald Link, president of BGRIM, said local industrial power sales continued to rise in the first half by 5.1% to 1,729 gigawatt-hours (GWh) with old and new customers taking a greater load.

"The second quarter of 2022 saw new clients starting to take 9.3MW, thus meeting the full-year target of not less than 55MW."

BGRIM is due to start importing liquefied natural gas (LNG) in early 2023 to increase flexibility in managing natural gas costs.

The LNG will be specially earmarked for its small power producer (SPP) plants and those newly rebuilt as a replacement for decommissioned stations to serve industrial clientele.

As part of its LNG implementation plan, BGRIM signed an accord with PTT LNG in the first quarter of this year to use its LNG terminal services.

Mr Link noted that the commercial start-up of BGRIM's SPP replacement power plants which come with modern technology and higher efficiency, the expansion of the industrial customer base and cost control look set to support the company's operating results over the next 12 months.

The rise in electricity charges brought by the adjustments to the Ft cost factor in every four-month interval will also be beneficial.

In the September-December period, the Ft is to increase further by 0.6866 baht per kWh to 0.9343 baht in response to higher world energy prices.

Mr Link said BGRIM has been steadfastly forging cooperation with leading partners both at home and abroad to capture business opportunities such as acquiring a key stake in reNIKOLA Holdings Sdn Bhd in Malaysia, or a 20% interest in the Sekong Investment Advisory Co in Laos.

BGRIM's current portfolio includes 56 projects in operation with a total installed capacity of 3,379MW, and the company has targeted to raise cumulative power sale capacity to 7,200MW by 2025 and further to 10,000MW by 2030.

BGRIM has amassed more than 36 billion baht in cash on hand at the end of the second quarter with a net debt-to-equity ratio of 1.8 times.

The firm announced an interim dividend of 0.03 baht per share for the first half representing a payout ratio of 43% of normalised net profit attributable to the parent company.



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