CK Power Plc, one of the region’s largest electricity producers from hydro power, reported a total revenue of 2.49 billion baht, a 195 million baht or 7.3% decrease compared to the same period last year, primarily due to the lower revenue from electricity and steam sales from Bangpa-in Cogeneration Limited (BIC) as a result of lower average natural gas prices and lower retail Ft compared to the same period of the previous year.
However, the company's gross profit was 560 million baht, a 20.5% increase from the same period of last year. A key positive factor was the Nam Ngum 2 Hydroelectric Power Plant (NN2), which had higher reserved water levels and inflows into its reservoir than the same period of the previous year, said Thanawat Trivisvavet, managing director.
Thanawat Trivisvavet
CKPower also recorded 461 million bath in net loss attributable to equity holders of the company, an increase in loss of 357 million baht from the same period last year. The main reasons were the recognition of a 570 million baht share of loss from investments in associates in the first quarter, resulting from the lower than average water inflow through the Xayaburi Hydroelectric Power Plant operated by Xayaburi Power Company Limited (XPCL) compared to the same period last year leading to reduced electricity sales of XPCL; higher finance costs of XPCL due to rising global interest rates; and the recognition of a share of foreign exchange loss from the translation of US dollar-denominated loan based on the equity stake in the Luang Prabang Hydroelectric Power Project which was under construction.
Mr Thanawat said that CKPower reported a loss of financial results in the first quarter of this year in line with the trend of the seasonal water levels, typically, the water levels are at their lowest in the first quarter, which coincides with the dry season. Additionally, the company recognised 219 million baht in foreign exchange loss impacting net profit attributable to equity holders of the company as a result of the significant baht depreciation. The loss was largely brought on as the Luang Prabang Hydroelectric Power Project began to draw down its US dollar-denominated loans for construction starting from mid-2023.
However, excluding the foreign exchange loss from non-cash transactions and did not impact the Company’s cash inflow, CKPower would recognise a core net operating loss of 242 million baht, an increase in loss of 163 million baht compared to the same period last year.
Mr Thanawat further stated that CKPower is confident that investing in the Luang Prabang Hydroelectric Power Project, which will serve as a source of clean eco-friendly electricity, will be beneficial despite the high investment required for its construction. Once completed, the project will play a significant role in reducing Thailand’s greenhouse gas emissions and generate stable and sustainable long-term cash flows and returns for the Company.
On April 25, the shareholders approved a dividend payout of 0.085 baht per share from 2023 operating results, totaling approximately 691 million baht. The dividend will be paid to eligible shareholders based on the record date of May 8, 2024, with the payment date scheduled for May 23, 2024.
"The relatively high water levels at NN2 in the first quarter, coupled with seasonal water inflow factors, are expected to positively contribute to the Company’s performance in the remaining quarters of the year," said Mr Thanawat.