GPSC releases revenue in Q3/2019 of Baht 19,226 Million, rising Baht 12,565 Million, or 189% from the same period of last year. However, the revenue fell Baht 764 Million, or 4% from the previous quarter. The rise in revenue was due to additional revenue after acquiring GLOW, showing rising EBITDA and strong cash flow. However net profit dropped slightly due to rising interest expense from short-term loans paid for the tender offer process in May 2019 and Front End Fee Amortization, which was part of the company financial restructuring plan, while the company still continued to expand business further to come up with changing technology and innovation of power.
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 had total revenue of Baht 19,226 Million in Q3/2019, rising Baht 12,565 Million, or 189%, from the same period of last year due to the acquisition of GLOW, which brought in an additional revenue continuously in this quarter.
However, net profit in Q3/2019 was at Baht 893 Million, falling Baht 6 Million, or 1% from the same period of last year. The fall in net profit was due to seasonal falling sales of GHECO-One plant as power demand in the rainy season normally falls and that had cut power sales of Houay Ho Power plant in Laos. Moreover, the company also had rising interest burdens due to the tender offer process to hold 95.25% of GLOW in May as well as increasing in Front End Fee Amortization from the adjustment of short-term loan repayment plan of the RO proceeds in October 2019. Those processes aimed to strengthen the company financial status to be ready to expand business domestically and internationally as the company is confident that power generating business is still on the growing trend with new technologies and innovations to help develop every unit of the company production bases.
The Adjusted Net Income, that excludes the amortization expenses from the assessment of the fair value of intangible asset from the acquisition of GLOW amounting Baht 372 million and the effects of accounting standards amounting Baht 277 Million which reflects the company's true earnings from its normal operations, was at Baht 1,542 million.
For the operation in Q3/2019, the company has Baht 5,057 Million of EBITDA, rising from the same period of last year, reflecting that GPSC still have strong cash flow after it had successfully earned additional revenue after acquiring GLOW.
“Overall business operation in Q3/2019 is the quarter that we continued to move forward as planned in term of investment by acquiring more shares from retail shareholders of GLOW. Moreover, it was the quarter that we had financial restructure, which has been completed the capital increase of Baht 74,000 Million in October and use the proceeds to repay the short-term loans. This will make the company to have strong financial status with smaller interest expenses from Q4/2019 onward” said Mr. Chawalit.
However, a power and steam generating project which is about to start commercial operation date (COD) in 2020 is the capacity expansion of Nava Nakorn Electricity Generating Company Limited (NNEG). It is a project of 60MW of power and 10 tons per hour of steam that GPSC holds 30% of stake.
Since the period of July-October, 2019, there are 3 projects which have been already started COD; 65 MW of Nam Lik 1 Power Company Limited (NL1PC) in Laos, which GPSC holds 40% share, the Central Utility Plant 4 (CUP 4) in Rayong, a 100% owned subsidiary of GPSC which produce 45 MW of power and 70 tons per hour of steam and Xayaburi Power Company Limited (XPCL), which GPSC holds 25% share and produce 1,285 MW of power.