Electricity sales boost BGRIM revenue

BackFeb 26, 2022

B.Grimm Power Plc (BGRIM) reported revenue growth for the 2021 financial year of 5.8%, a tally of 46.6 billion baht, citing a boost from stronger electricity sales.

However, its normalised net profit was hit by higher natural gas costs.

The growth in revenue was supported by a 2.4% increase in power sales to 14,794 gigawatt-hours.

Harald Link, chairman and president of BGRIM, said the 8.8% price hike in natural gas to 266 baht per million BTU in 2021 and 335 baht per million BTU in the fourth quarter of 2021 were key factors depressing the company's normalised net profit for the year by 6.8% to 2.4 billion baht.

Mr Link cautioned that 2022 would see a continuation of rising natural gas prices.

The company has taken steps to deal with the gas price spike by tightening costs and expense controls, which are expected to save at least 100 million baht in expenditures, he said.

BGRIM is preparing to import liquefied natural gas (LNG) early next year, which is expected to save around 7-10% of this fuel cost.

Meanwhile, the company is on track to clinch a power purchase agreement of at least 1,000 megawatts this year, as well as begin a commercial run for five small power producer replacement projects with a total installed capacity of 700MW, a move that will reduce natural gas consumption by about 15%, said Mr Link.

He emphasised six core foundations for the company's future plans: its commitment to net zero carbon by 2050; digital transformation; processing improvements and cost control plans; importing LNG to manage natural gas costs; implementing a pilot project for energy trading; and forming alliances with leading partners.

In addition, the board of directors' resolution on Feb 24, 2022, approved the incremental issuance of debentures not exceeding the outstanding balance of 100 billion baht during 2022-2026 to strengthen the capital structure and support the growth target of 10,000MW.

BGRIM announced a dividend of 0.27 baht per share for the second half of the year, maintaining the dividend payout rate at 45% of normalised net profit.

Source: bangkokpost