Glow’s Q1 profit hit by maintenance

SET-listed Glow Energy Plc, an independent power producer with cogeneration facilities, posted a 31% drop in net profit in the first quarter of this year, largely due to falling revenue at its Gheco-One power plant.

President and chief executive Brendan Wauters said the company posted a total revenue of 12.1 billion baht in the first quarter of 2017, down 14% from the same period of last year, where it saw a total revenue of 14.2 billion baht.

Net profit in the first quarter of 2017 was at 1.9 billion baht, a fall of 31% from last year’s 2.8 billion baht.

Mr Wauters said the lower revenue and profit was due to a maintenance-intensive period during the first quarter of the year.

“We completed planned maintenance activities on a number of our main units, including Gheco-One, Glow Energy Phase 5 and HHPC,” said Mr Wauters.

The company raised 3 billion baht to become more competitive in the powergenerating market.

Chief financial officer Pajongwit Pongsivapai said the company raised the funds through international loans to refinance its mature debts during the first quarter of this year.

“During the first quarter of 2017 we refinanced maturing debt by entering into a five-year, 3-billion-baht bullet loan facility. We are extremely satisfied with the competitiveness of the pricing we achieved in this round of funding,” he said.

The company recently said it planned part of its 2017-20 capital expenditure of 3-5 billion baht to re-power four generating units at two power plants in Rayong. The four units, with total power-generating capacity of 500 megawatts, received operating licences in 1996 and were due to retire in 2017.

The remaining capex will be used for expansion locally and across Asean.

GLOW shares closed yesterday on the SET at 79 baht, down 25 satang, in trade worth 240 million baht.