GPSC announces its 79% jump in profit of Q1/2017 and be ready to speed up its power plants according to increasing of Fuel Tariff (Ft).

GPSC reported its total revenue of 5,366 million THB in the first quarter of 2017, growing by 20% from the last quarter of 2016, while net profit surged 79% to 750 million THB. The company expected brighter business in the second half of the year, when it planned to accelerate projects to generate electricity to match rising demand. GPSC would also continue its efficient cost management as well as developing new lithium ion battery technology to develop further its power business in ASEAN.

Dr.Toemchai Bunnag, President and Chief Executive Officer of Global Power Synergy Public Company Limited or GPSC, an electricity and utility flagship of PTT Group, said the company had total operation revenue of 5,366 million THB in the first quarter of 2017, while net profit was at 750 million THB. That were 904 million THB rise, or 20% up in operating revenue and 331 million THB rise, or 79% up in net profit from the fourth quarter of 2016.

“In the first quarter of 2017, the company’s operating revenue dropped by 118 million THB, or 2% from the same period of last year, while net profit fell 121 million THB, or 14% compared with the same period last year due largely to a 60 million THB decrease in dividend derived from Ratchaburi Power Company Limited (RPCL) as well as a decline in earnings of IRPC Clean Power Phase 1 (IRPC-CP Phase 1), whose clients had maintenance shutdowns.” said Dr. Toemchai.

For the power business outlook in the second quarter, electricity demand remained strong since electricity consumption was expected to grow by 9.39% from the January-Aril period to 68,198 million units during May-August 2017 in line with growing economy. Meanwhile, the increased fuel tariff (Ft) of 12.52 satang per unit to be applied for the May-August period will result into a rise of 3.7% in standard rate to 3.5079 THB per unit. GPSC, therefore, plans to maximize benefits from a risen Ft rate by focusing on operation of its small power plant (SPP). In addition, the company will continue on its efficient cost management despite a trend of rising fuel prices especially natural gas.

In 2017 GPSC will realize a full-year income from the solar farm project derived from the Chanthaburi Shrimp Farmers Cooperatives Co. Ltd. and revenue from Bangpa-In Cogeneration Power Plant project 2 in the third quarter. Moreover, there are 2 under construction projects of Ichinoseki Solar Power in Japan and IRCP Clean Power Phrase 2, which are due to start generating revenue to the company in the fourth quarter of this year.

GPSC has also set a business growth strategy to seek for more opportunities to expand businesses both domestically and internationally, particularly in energy storage technology, which the company has joined hand with the US-based 24M Technologies to develop and produce lithium ion battery for ASEAN market, said Dr. Toemchai.