Adds new clients and approves Bt0.22 dividend per share for 2H’19
B.Grimm Power Plc (BGRIM) reported a hefty profit rise in fourth-quarter 2019, fueled by higher capacity and additional customers.
BGRIM, a leading private power producer in Thailand, posted its 2019 result with net profit in October-December of 816 million baht, with 409 million baht attributable to major shareholders, jumping 215%. Normalized net profit in the period soared 118% to 832 million baht, 428 million baht of which was attributable to major shareholders, representing a 94.5% increase, according to BGRIM CEO Preeyanart Soontornwata.
For the whole year, BGRIM's consolidated net profit was 3,977 million on a 20.6% increase in revenue from sales and services to 44,132 million baht.
Net earnings attributable to major shareholders were 2,331 million baht, up 25.1% from the previous year.
The robust 2019 results were driven by a 40% rise in production capacity from local and international projects acquired or newly developed as well as fuel efficiency improvement from gas turbines at two co-generation facilities, and reduction of financial costs by loan refinancing.
BGRIM has put in place water management to ensure maximum benefits from water utilization in pursuance of conservation under the sustainability guidelines.
Most of the water used by BGRIM's co-generation facilities comes from recycling or treating wastewater from industrial plants.
The company has also ensured that its generation is efficient in order to support effective water management in collaboration with industrial estate operators.
This emphasis ensures that that water reserves kept at reservoirs of industrial parks are sufficient for operation until the rainy season.
BGRIM is confident that it will be able to continuously produce quality electricity and steam to meet the needs of existing and new industrial customers.
The company has a large number of world-class creditworthiness customers, resulting in its overall power sales to industrial customers in January 2020 remaining strong compared to the same period last year and at a stable level. There were also new power purchasing agreements with industrial clients totaling 23 MW, scheduled to start over the first seven months of this year.
Meanwhile, there was still demand from at least 1,000 potential clients in industrial estates at sites under operation or development that could well become clientele of the company.
BGRIM is confident of exceeding the 5,000 MW capacity target with joint venture investment in several projects being explored.
On the radar are gas-fired and renewable energy schemes in Thailand, Vietnam, South Korea, Malaysia, Cambodia, Laos and other countries.
There are also several merger plans under scrutiny, both at home and abroad.
BGRIM's combined capacity of facilities in operation and under development stood at 3,424 MW.
Projects under construction include the 16-MW Bo Thong wind farm, a 39-MW solar energy scheme in Cambodia, a 6-MW solar rooftop project in the Philippines, and a 30-MW development for partners in Oman.
The year 2019 was noteworthy in the sense of recognition and acclaim with BGRIM winning ten awards in various fields from national and international organisations, including Best Renewable Projects, Green Bond Financing, Best CEO, and Best IR Team.
Together with seven other ESG and sustainability accolades, these reflect BGRIM's commitment and responsibility regarding the environment, society and governance and its efforts to achieve sustainable development.
BGRIM has declared a dividend of 0.22 baht per share for the second-half of 2019, payable on May 11, 2020 to shareholders with the record date set on March 13, 2020.
