Gulf forecasts 60% revenue gain in 2019
SET-listed Gulf Energy Development Plc, one of Thailand’s largest power producers, expects revenue to leap 60% to 32 billion baht in 2019 as the commercial operation dates (CODs) of five power plants arrive.
Chief executive Sarath Ratanavadi said the five projects consist of four gas-fired small power producers (SPPs) in Rayong, Saraburi and Nakhon Ratchasima and one solar farm in Vietnam.
“After the CODs’ commencement in 2019, the five power plants will increase Gulf’s power generation under its ownership from 2,253 megawatts now to 2,667MW by 2019, up 18.4%,” Mr Sarath said. “Thanks to a high feed-in tariff that Gulf will gain from the solar farm in Vietnam and other renewable power projects, 2019 revenue will make a big jump.”
Gulf has a rapid expansion plan for power generation during 2019-23, expecting to increase power capacity under ownership to 5,772MW by 2023.
Gulf will expand at home under its SPP licences, while overseas markets will see renewable power projects.
By 2023, Gulf expects revenue to reach 50 billion baht, Mr Sarath said. For now, Gulf is confident of achieving 20 billion baht in revenue for 2018, up 110%.
Gulf has two independent power producer (IPP) licences for a combined 5,200MW won at auction in 2013. Half will be developed by Gulf SRC Co (GSRC) and half by Gulf PD Co (GPD).
GSRC and GPD are 70%-owned by Gulf, with 30% held by Mitsui & Co. The projects have long-term gas purchase contracts with national oil and gas conglomerate PTT Plc.
GSRC, located in Sri Racha district, Chon Buri province received a syndicated loan three weeks ago with a total value of 38 billion baht. The COD is between March 2021 and October 2022.
GPD, located in Pluak Daeng district, Rayong province, is expected to obtain a loan of the same amount by 2020 and make the COD in 2024.
Gulf aims to increase power capacity under ownership to 6,330MW by 2024 from the two IPPs.
Yesterday, Gulf held an extraordinary general meeting and approved the issue of 10 billion baht in debentures to refinance debt, expand power projects and increase working capital.
GULF shares closed yesterday on the Stock Exchange of Thailand at 75.75 baht, down 75 satang, in trade worth 517.5 million baht.