A bird's-eye view of one of BGRIM's power plant in Thailand. The firm's revenue rose by 4.7% to 11.7 billion baht in the third quarter of this year due to a 17.1% growth in electricity sales to domestic industrial customers.
B.Grimm Power Plc (BGRIM), Thailand's leading industrial power producer, increased its normalised net profit attributable to the parent company by 6% in the first nine months of this year to 2.2 billion baht.
The higher earnings resulted from a 21% rise in its power sales to industrial clients, a 16.9% reduction in sales and administrative expenses, and expanded production capacity, said Harald Link, chairman and president of BGRIM.
Actual power sales from January to September exceeded the 10-15% growth projections set earlier.
In the third quarter of this year, BGRIM saw its revenue edge up by 4.7% to 11.7 billion baht. This was driven by a 17.1% growth in electricity sales to domestic industrial customers, which reached a peak at 844 gigawatt-hours.
The rise in power deliveries was driven by strong demand from key industrial customers and new buyers who have committed to purchase 33.5 megawatts from BGRIM. The firm has targeted not less than 40MW in power supplies to new clients this year and more than 50MW in 2022.
However, third-quarter normalised net profit attributable to the parent company dropped 23.4% from the same period last year to 571 million baht. This was primarily due to a 14% increase in natural gas prices to 268 baht per million British Thermal Unit and the planned maintenance shutdowns of its three industrial power plants.
Mr Link said the majority of BGRIM's revenue, at 75%, would not be affected by rising natural gas prices.
The firm will cope with the matter by means of acquiring more projects to realise profits immediately next year.
Various cost-control plans will be also implemented to save at least 100 million baht in expenses in 2022.
The company's five replacement co-generation plants are scheduled to operate in the second half of 2022 with greater fuel efficiency that can reduce the consumption of natural gas per unit of generation by 15%.
BGRIM also has flexibility in managing future gas costs when its plan to import liquefied natural gas is realised.
Mr Link said BGRIM is striving to achieve net-zero carbon emissions by 2050 through projects to expand its renewal energy portfolio, including recently announced ventures in Malaysia and Poland.