CK Power Plc (CKP), the power generation arm of Ch Karnchang Plc, Thailand's second-largest construction firm, saw its profit increase by 11.8% to a record high of 2.4 billion baht last year, despite a surge in energy prices.
The company attributed the increase to various factors, notably more electricity sales from its hydropower plants and a focus on renewable energy.
CKP's total revenue also reached an all-time high of 11.4 billion baht, an increase of 22.3% from 9.33 billion baht in 2021.
Thanawat Trivisvavet, managing director of CKP, said the company's strong performance in the volatile global energy market was because of its strategy of focusing on investments in renewable energy and reducing its dependency on fossil fuels.
"We aim to invest only in renewable energy projects across Asean and to increase the proportion of renewable energy in our portfolio from 89% to 95% by 2024," said Mr Thanawat.
The company's hydropower plants in Laos played a key role in racking up revenue last year.
Revenue growth was driven by a 39.3% increase in the share of profit from its joint ventures and associates that operate dams.
Higher average water flow experienced by the Xayaburi Hydroelectric Power Plant resulted in significant growth in electricity sales volumes, said Mr Thanawat.
CKP's financial management is expected to be good this year. While rising interest rates in the US and other countries, including Thailand, is a key factor that may impact the company's financial performance in 2023, 83% of CKP's consolidated long-term debt is in the baht and carries a fixed interest rate.
At present, CKP's electricity generation from its 13 power plants is based on three types of energy -- hydropower, solar power, and gas. Its facilities have an installed power generation capacity of 2,167 megawatts.
CKP aims to achieve net-zero, a balance between greenhouse gas emissions and absorption, by 2050.