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Banpu Power Revenues Increase

SET-listed Banpu Power (BPP) saw a slight increase in sales revenue for the second quarter of 2020, helped by three combined heat and power plants in China.

Profit fell 11% from the same quarter last year to 806 million baht on total sales revenue of 1.06 billion baht because of the changing price of coal.

BPP maintained gross profit of 12% while the average cost of coal for the quarter was at 540 yuan per tonne, down 11% year-on-year from 605 yuan per tonne.

The company saw profit of 806 million baht with the BLCP power plant (a joint venture between Banpu and the Electricity Generating Authority of Thailand) still maintaining efficiency in operations.

At an equivalent availability factor of 100%, the plant reported a share of profit of 489 million baht after adjustments from a loss from currency exchange rates of 120 million baht and deferred income taxes of 44 million baht.

Hongsa power plant Unit 3 has been temporarily closed from late April to August after a malfunction was detected in certain machines requiring maintenance.

The plant’s share of profits dipped to 407 million baht after loss from currency exchange rates was included.

The renewable energy and energy technology businesses under Banpu Next reported a loss of 90 million baht.

BPP reported its first-half earnings before interest, taxes, depreciation and amortisation was 2.83 billion baht, with a total operating profit of 2.22 billion.

The company plans to achieve total capacity of 5,300 megawatts of electricity with 800MW of renewable energy by 2025 through construction of power plants in China and Vietnam, and investments in businesses that generate immediate cash flow like El Wind Mui Dinh wind farm in Ninh Thuan province of Vietnam.

“In the first half of 2020, despite the pandemic creating a real challenge for business, BPP continued to maintain our business growth with effective business continuity management, allowing us to sustain a strong cash flow and revenue generated from higher sales volume of electricity from combined heat and power plants in China, as well as stable shared profits from BLCP and Hongsa power plants,” said Kirana Limpaphayom, chief executive of BPP.

“BPP is also expanding our investment portfolio to reach our targeted capacity.”

Recently the company gained capacity by acquiring a wind farm in Vietnam that is already operating commercially and is expected to report revenue in the final quarter of this year after the deal is closed.

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