Bumper 2023 for BGRIM as net profit expands sharply

Bumper 2023 for BGRIM as net profit expands sharply

Production capacity increased by 667MW

B.Grimm Power (BGRIM) reported a surge in normalised net profit in 2023 after facing a severe impact from the gas price crisis in the previous year.

Mr Link credited the turnaround to several factors.

Harald Link, chairman of B.Grimm and president of B.Grimm Power, said the company posted an outstanding performance last year, up significantly from 2022.

Normalised net profit surged to 2.06 billion baht in 2023, rising from 375 million baht the previous year.

Mr Link credited the turnaround to several factors. First, production capacity from operational projects increased by 667 megawatts. In addition, there was a resurgence in profit margin per unit between the fuel tariff (Ft) electricity price and natural gas costs.

Moreover, there was a 1.2% uptick in the amount of electricity sold to industrial customers, and a 2.5% reduction in the volume of natural gas use per unit, achieved through continuous improvement in power plant efficiency.

In 2023, BGRIM achieved a significant milestone by expanding production capacity to 4 gigawatts through the successful commercial operation of several planned power plants.

Additionally, strategic investments were made in key markets such as South Korea and Malaysia, further solidifying BGRIM's position in driving collaborative development within the regional energy sector.

Mr Link said a significant milestone in 2023 was the advancement of the "Greenleap: Global and Green" strategy which underscores the firm's steadfast commitment to sustainable development.

"BGRIM is also actively engaged in multiple renewable energy projects in several countries including the Philippines, Cambodia, Greece, Saudi Arabia and the United Arab Emirates, further solidifying our position as a leader in the global renewable energy sector. This comprehensive approach aligns with the company's long-term operating strategy aimed at fostering diverse investments and establishing leadership in the global renewable energy arena," he said.

"We have a number of projects under development and construction with secured power purchase agreements totalling 698MW. In addition, there is ongoing development of wind power projects exceeding 1GW in South Korea, a solar power initiative ranging from 250-300MW in Italy, and a renewable energy project under the feed-in tariff programme in Thailand totalling 339.3MW."

The company is committed to fostering growth of Thailand's industrial sector. In 2023, the company added new industrial users totalling 52.1MW, as planned.

Mr Link outlined plans this year to expand investments in projects with low greenhouse gas emissions, both domestically and globally.

"The focus is on advancing green energy initiatives by participating in the government's upcoming round of electricity procurement bids, adhering to regulations that mandate sourcing electricity from renewable energy under the feed-in tariff programme," he said.

The strategy involves proceeding with the commercial operation of power plant projects in Thailand, Japan and South Korea as outlined.

Furthermore, there's a target to onboard new industrial users with a connected load of 50-60MW through electricity purchase agreements.

BGRIM announced it would pay a dividend of 0.36 baht per share for 2023.

This dividend comprises an interim dividend of 0.18 baht per share and a final dividend of 0.18 baht per share, with the dividend payout rate remaining at 45% of normalised net profit.

The ex-dividend date is scheduled for March 13 and the dividend payment date is May 10. Dividend approval is on the agenda at the company's 2024 annual general meeting of shareholders.

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