BCPG predicts solid second-half revenue

SET-listed BCPG Plc, the renewable energy arm of Bangchak Corporation Plc, remains positive about second-half revenue prospects, as four projects on hand will see commercial operation dates (CODs) during the period.

The first COD of solar farm projects for government agencies, co-operatives and the War Veterans Organisation was in late July. The projects are in Saraburi and Kanchanaburi provinces and are entitled to a feed-in-tariff (FiT) of 4.12 baht per kilowatthour for a 25-year power purchase agreement contract of 8.94 megawatts.

The second COD of solar rooftop pilot project and peer-to-peer trading platform is T77 community in late August, a project BCPG has been working on with property developer Sansiri and Power Ledger, an Australian start-up company.

The third COD is the installation of solar rooftops at Bangchak’s service stations.

The fourth COD is the construction and development for a wind power plant with installed capacity of 10MW at Pak Phanang, Nakhon Sri Thammarat province.

BCPG has acquired ordinary shares amounting to 236.5 million baht and completed the share transfer of Lomligor Co. BCPG expects the project to have its COD in the second quarter next year and be entitled to an adder rate of 3.5 baht per kilowatt-hour.

President and chief executive Bundit Sapianchai said BCPG’s vision is to focus on generating power from renewable energy with innovation and environmentally friendly value.

“The growth strategy is to expand BCPG’s existing business such as the CODs of solar power plants in Thailand and Japan in partnership with other companies, and through co-developing strategies to improve operations of BCPG’s investment projects in the Philippines and Indonesia,” he said.

Furthermore, business acquisitions, joint venture and new investments are also main facets of BCPG’s growth strategies.

In a related development, BCPG recorded revenue in the second quarter from electricity sales from Thailand and Japan of 873.8 million baht, down by 1.8% from the same period last year.

The sharp decrease was a result of lower irradiation in Thailand, compared with a year ago, after longer-than-usual rainfall during the period.

But on a quarterly basis, revenue grew by 9% thanks to an increase in electricity consumption given the high season and improving weather conditions, especially in Japan.

The COD of the Gotemba project was on April 16. The project is entitled to a FiT rate of 32 yen per kilowatt-hour, which has also supported growth.

BCPG shares closed yesterday on the Stock Exchange of Thailand at 18.70 baht, down 30 satang, in trade worth 264 million baht.