GPSC has a continued rise in Q2 revenue, reaching Bt.19,990 Million, rising 203% year-on-year due to immediate increase in revenue after acquiring GLOW, reflecting the company’s strong potential to distribute power and utilities, including Independent Power Producer (IPP), Small Power Producer (SPP) and Very Small Power Producer(VSPP). GPSC will continue to focus on customers’ power security with a plan to increase capital in order to strengthen its financial status to keep investing in new technology and innovation to align with changing power demand amid the rise of renewable power in Thailand.
Mr.Chawalit Tippawanich, President and Chief Executive Officer of Global Power Synergy Public Company Limited or GPSC, the innovative power flagship of PTT Group, said the company has reported to the Stock Exchange of Thailand (SET) that it had total revenue of Bt.19,990 Million in Q2/2019, rising Bt.10,923 Million, or 120%, from Q1/2019. In Q2/2019, GPSC also had the adjusted net income was at Bt.1,441 million (from the assessment of the fair value of net assets and allocation of business acquisition costs, in which if the amortization expenses was still to be included, amounting Bt.360 million from the first date of acquisition until the end of 2nd Quarter) up Bt.499 Million. That equals to 53% from Q1/2019 which is part of the increasing revenue from the completion of the acquisition of GLOW since Q1/2019.
“Moreover, the company is also able to produce increasing power and steam for customers in industrial sector, reflecting strong efficiency and expertise in securing power supply professionally,” said Mr.Chawalit.
For the first six months of 2019, GPSC has rising revenue and profit with total revenue of Bt.29,057 Million, rising Bt.16,728 Million. That was the 136% rise from the same period of last year due to increase revenue from the acquisition of GLOW since the acquisition completed in March 14, 2019, which will lend support to GPSC to have continued rise in power and utilities from power and utility plants of GPSC and GLOW.
On the progress of GLOW acquisition, GPSC currently holds 95.25% with the approval of the company’s Board of Directors to delist GLOW and all of its assets from the Stock Exchange of Thailand (SET). Then, the company has submitted a Delisting Tender Offer of the remaining amount of GLOW’s shares of 4.75%, which is expected to complete by December 2019.
After the completion of GLOW acquisition, GPSC has reorganized its financial structure to strengthen its financial status to align with more investment plans in the future as well as to comply with the plan to synergize the 2 companies after the acquisition in order to increase cost managing effectiveness. Currently, the company is proposing the Board of Directors in the first extraordinary meeting in 2019 to approve the capital increase of Bt.74 Billion. The company will issue not exceeding 1,321.43 million shares for sale of newly-issued ordinary shares to the existing shareholders (Rights Offering: RO) at a ratio of 1 for 0.8819 at a discounted rate of approximately 20% which is at the offering price of Bt.56 per share. It was calculated from the weighted average price of the shares of the company traded on the Stock Exchange of Thailand (SET) of no less than 30 consecutive business days prior to the date on which the Board of Directors resolved to propose the matter on July 26, 2019 (13 June - 25 July 2019) which was equivalent to approximately Bt.70 (based on information from SETSMART of SET). The plan will be proposed at the first Extraordinary General Meeting of Shareholders on August 28, 2019. The Record Date will be on September 4, 2019, and the date for subscription of newly-issued ordinary shares shall be during September 30 and October 4, 2019. That would allow the company to have falling Debt to Equity ratio of 0.8, which would help increase the company’s capacity to rise funds in several types, including from local lenders and issuing debentures. That would make the company to be ready to invest both existing projects and new projects with new technology and innovation to align with rising demand of power in industrial sector as well as demand in emerging renewable power that grows in line with the country’s Power Development Plan (PDP 2018).
From this year onwards, there are 4 power and steam projects that are due to start commercial operation (COD), particularly in 2019-2020. There are: 1) a 65 MW Nam Lik 1 Power Company Limited (NL1PC) in Laos, which GPSC hold 40% stakes, and has started COD since July 1, 2019. 2) a 1,285 MW Xayaburi Power Company Limited (XPCL) in Laos, which GPSC holds 25% of stakes and is due to start COD in Q4/2019. 3) a Central Utility Plant 4 (CUP 4) in Rayong province with 45 MW of power and 70 tons per hour of steam, which is due to start COD in Q3/2019 and 4) the expansion of the Nava Nakorn Elecricity Generating Company Limited (NNEG), which is due to have an additional 60 MW of power and 10 tons per hour of steam, which GPSC holds 30% stakes and is due to start COD in 2020.