Staying out of oil pays off for three firms
Non-oil energy firms enjoyed strong revenue growth in the first quarter as well-timed investments in capacity expansion paid off.
SET-listed SPCG, BCPG and Asia Green Energy (AGE) reported solid firstquarter growth to the Stock Exchange of Thailand yesterday, in contrast with many sectors struggling this year due to the lockdown and business closures.
The companies are not heavily involved in the oil sector, which has cratered in recent months as a result of falling crude prices.
SPCG reported 8% year-on-year revenue growth in the first quarter to 1.454 billion baht. The company posted a net profit of 838 million baht, an increase of 7% from the same period last year.
Chairwoman and chief executive Wandee Khunchornyakong Juljarern said the growth was a result of increased electricity sales from 36 solar farms across Thailand.
SPCG’s solar roof arm, Solar Power Roof, increased revenue by 72% yearon-year in the first quarter.
Ms Wandee said the solar roof business predicts massive revenue growth this year, due to offering 100% leasing options for solar roofs through financial institutions for up to 15 years.
Last July, SPCG signed a memorandum of understanding with Mitsubishi UFJ Lease and Finance, PEA Encom International and Kyocera Corporation Japan to expand the full service of its solar rooftop business from leasing, design and engineering to product suppliers.
The company has also jointly invested with leading Japanese firms to develop a solar farm project under the name of “Ukujima Mega Solar Project” with a total capacity of 480 megawatts, located on Ukujima island in Nagasaki prefecture.
BCPG, the renewable power arm of mostly state-owned Bangchak Corporation, announced total revenue of 886 million baht in the first quarter, a 9.7% increase year-on-year. Net profit increased 16.7% in the first quarter from the same period last year to 574 million baht.
BCPG president Bundit Sapainchai said the robust first-quarter performance was a result of full-year revenue recognition of newly developed and acquired power plants such as wind power farm Lom Ligor, hydropower plants Nam San 3A and Nam San 3B and the floating solar farm in Bang Pa-in.
BCPG also gained on foreign exchange, mainly boosted by the company’s performance, with a profit of 325 million baht compared with a foreign exchange gain of 38 million baht booked the previous year.
AGE, a coal trader and logistics service provider, reported a 24% revenue increase from the same period last year to 2.05 billion baht because coal sales volume rose 27% to 1.05 million tonnes. Net profit dropped 49% from the same
‘‘ The solar roof business predicts massive revenue growth this year.
WANDEE KHUNCHORNYAKONG JULJARERN
Chief executive, SPCG
period last year to 41.2 million baht.
AGE chief executive Phanom Kuansathaporn said the restrictions on land transport held logistic services down while the lower revenue and profit were offset by growth in coal sales volume.
Most of AGE’s coal buyers are industrial operators.
The company continues to apply its business expansion plan by improving logistics infrastructure and purchasing six marine ships and 20 large trucks by the end of the year to tap into growth of logistics demand once the pandemic subsides.
Next year its logistics service will have 36 ships and 35 trucks in operation.
AGE plans to expand its marine port in Ayutthaya to serve new demand that is predicted to emerge in logistics services. The port will commence operations next year.