BANGKOK – B.Grimm Power Plc (BGRIM) reported a hefty profit rise in fourth-quarter 2019, fueled by higher capacity and additional customers.
BGRIM, a leading private power producer in Thailand, posted 2019 result with net profit in October-December of 816 million baht, with 409 million baht attributable to major shareholders, jumping by 215%. Normalized net profit in the period soared 118% to 832 million baht, 428 million baht of which was attributable to major shareholders which represented a 94.5% growth, according to BGRIM CEO Preeyanart Soontornwata.
For the whole year, BGRIM’s consolidated net profit was 3,977 million on a 20.6% increase in revenue from sales and services to 44,132 million baht.
Net earnings attributable to major shareholder were 2,331 million baht, up 25.1% from the previous year.
The robust 2019 results were driven by the 40% rise in production capacity from both local and international projects which were acquired or newly developed, as well as the fuel efficiency improvement of gas turbines at two co-generation facilities, and the reduction of financial cost by loan refinancing.
BGRIM has put in place a water management to ensure maximum benefits from water utilization in pursuance of conservation under the sustainability guidelines.
Most of the water that is used by BGRIM’s co-generation facilities comes from recycled process or being treated wastewater from industrial plants.
The company has also ensured that its generation is efficient to support effective water management in collaboration with the industrial estate operators.
This emphasis ensures that that water reserves kept at reservoirs of industrial parks are sufficient for operation until the rainy season.
BGRIM is confident that it will be able to continuously produce quality electricity and steam to meet the needs of existing and new industrial customers.
The company has a large number of world-class creditworthiness customers, resulting in its overall power sales to industrial customers in January 2020 remaining strong at a stable level comparing to the same period last year. There are new power purchasing agreements with new industrial clients with total volume of 23 MW, scheduled to start over the first seven months of this year.
Meanwhile, there are still demands from more than 1,000 potential clients in industrial estates at sites under operation or development which could well become potential clientele of the company.
BGRIM is confident of exceeding the 5,000 MW capacity target with joint venture investment in several projects being explored.
On the radar’s screen are gas-fired and renewable energy schemes in Thailand, Vietnam, South Korea, Malaysia, Cambodia, Laos and other countries.
There are also many merger plans both at home and abroad under scrutiny.
BRGIM’s combined capacity of facilities in operation and under development current stands at 3,424 MW.
Some of projects under construction are the 16-MW Bo Thong wind farm, the 39-MW solar energy scheme in Cambodia, the 6-MW solar rooftop project in the Philippines and a 30-MW development for partners in Oman.
The year 2019 was noteworthy in the sense of recognition and acclaim with BGRIM winning ten awards in various fields from national and international organizations. These include Best Renewable Projects, Green Bond Financing, Best CEO and Best IR Team.
Together with seven other ESG and sustainability accolades. All these reflect BGRIM’s commitment and responsibility in the environment, society and governance for sustainable development.
BGRIM has declared a dividend of 0.22 baht per share for the second-half 2019, payable on May 11, 2020 to shareholders which the record date on March 13, 2020.
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