B.Grimm Power posted a 21% increase in profit last year despite the impact of the pandemic.
Earnings up despite Covid-19 outbreak
B.Grimm Power Plc (BGRIM), an energy firm with the largest capacity in the small power producer (SPP) segment, posted a 21% increase in profit last year despite the Covid-19 impact.
Earnings of 2.61 billion baht in 2020 resulted mainly from the increase in generating capacity and power sales to industries in Thailand, said BGRIM chairman and president Harald Link.
The company last year added 162 megawatts in capacity, which ramped up output by 6% to 14,451 gigawatt-hours.
Power demand among BGRIM’s industrial customers rebounded strongly between September 2020 and January 2021, said Mr Link.
The company has seen continual expansion of its customer base, with new industrial clients having a total requirement of 15MW being connected to BGRIM’s supply system in 2020.
This year additional industrial demand for power is expected of more than 40MW, which will further consolidate the company’s customer base.
Mr Link said the full-year performance of large-scale solar power farms in Vietnam and the drop in natural gas prices also contributed to BGRIM’s robust results in 2020.
Last year the price of natural gas, a primary fuel for BGRIM’s plants, dropped by 10.4% year-on-year to 244 baht per million British thermal units (BTUs).
PTT Plc, Thailand’s major supplier of natural gas, expects natural gas prices to average 225 baht per million BTUs in 2021.
BGRIM set a goal to expand its power purchase agreement capacity to 7,200MW by 2025 from 3,058MW now.
The company wants to continue to emphasise its cooperation with partners in all business groups.
Partnership accords struck over the past six months include cooperation with Univentures Plc, which engages in real estate investment and development.
Mr Link said the conclusion of the syndicated green loan for the Phu Yen TTP solar farm project in Vietnam was another achievement last year.
This loan represents the first green credit in the region certified by the Climate Bonds Initiative.
BGRIM’s power projects under development are progressing well, he said. Bo Thong wind farms 1 and 2, with combined installed capacity of 16MW, in Mukdahan are 80.8% complete and on schedule to start commercial operation in the first half of 2021.
Construction on BGRIM’s nine SPP facilities has recorded 9-32% in progress.