Press Releases

Mr. Thanawat Trivisvavet, the Managing Director of CK Power Public Company Limited (CKPower), or "CKP" in SET, announced the performance of CKP and its subsidiaries in first quarter of 2020. The overall performance has decreased compared to the first quarter of 2019 due to the fact that during summer of this year the rainfall was less than the normal average which is the result of drought condition that has continuously existed from the middle of Year 2019 (the least rainfall in more than 50 years history) and affecting the electricity generation of both Nam Ngum 2 Hydroelectric Power Plant and Xayaburi Hydroelectric Power Plant. Nevertheless, the earnings before interest, taxes, depreciation, and amortization (EBITDA) before including the share of profit (loss) from investments in jointly controlled entities and associates was at 687 million baht, or 39% of revenue, showing a strong cash flow status, even in the midst of drought.

In the first quarter of 2020, CKPower and its subsidiaries recorded a total revenue of 1,762 million baht, a decrease of 27 percent from the same period of the Year 2019. The decrease of revenue mainly came from the reduced electricity sales volume of Nam Ngum 2 Hydroelectric Power Plant by 353.5 million units and the reduced electricity sales volume of Bang Pa-In Cogeneration Power Plant 1 (BIC-1) and 2 (BIC-2) by 22.4 million units whereas the electricity sales volume of Bangkhenchai Solar Power Plant including all solar rooftop projects has increased by 1.3 million units. In addition, the company has cash and cash equivalents according to the consolidated financial statements as of March 31, 2020 in the amount of 4,547.7 million baht, an increase of 333.5 million baht from the end of 2019 and the ratio of good debt payment capability with a net interest-bearing debt-to-equity ratio of 0.65 times compared to the terms of the debentures covenant to maintain at the rate not exceeding 3.00 times.

Mr Thanawat added that overall, in the first quarter of 2020, the company still has sufficient operating cash flow to manage operating expenses, financial expenses including more investments for business expansion. The company has loan facilities from financial institutions that have not yet been drawn down upto more than 10,000 million which can be used to invest in both on-going project and new projects as well. If during the upcoming rainy season, the amount of rain returns to conditions that are close to the normal average, it is expected that the company's year-round performance will continue to grow not less than the Year 2019 since 2020 is the year that the company can recognize the result of full year revenue from the Xayaburi Hydroelectric Power Plant together with 5 other solar rooftop plants and 1 solar farm plant with COD expected in the second quarter.

Apart from this, stable financial status including the ability to continuously generate cash flow from operations of the company are also in line with the latest rating of TRIS Rating Company Limited, which was released on April 28, affirming CKPower's corporate rating at "A Stable" and maintained the unsecured debentures with no guarantee for the company at the "A-stable" level. Moreover, TRIS also anticipates the development of large scale hydroelectric power projects that are challenging in the areas of geology, environment and engineering, in which CKPower has strength and successful experience. TRIS also views that the company has a stable cash flow from the conditions in the take-or-pay power purchase agreements with power purchasers. In terms of operating results, TRIS expects that the company will have EBITDA at the same level as the Year 2019, or approximately 4,000 million baht, which represents the financial status of the company at a satisfactory level with sufficient liquidity for operation.

Lastly, Mr Thanawat said that the company is still generating the electricity from the Xayaburi Hydroelectric Power Plant, Nam Ngum 2 Hydroelectric Power Plant, Bang Pa-In Cogeneration Power Plant 1 (BIC-1) and 2 (BIC-2), including Bangkhenchai Solar Power Plant, and has delivered electricity to the Electricity Generating Authority of Thailand (EGAT), the Provincial Electricity Authority (PEA), and Electricite du Lao (EdL) at full capacity to ensure that people have enough electricity to use while the governments of both Thailand and Lao PDR are still requesting cooperation for all citizens to stay home in response to the fight against the pandemic infection of Corona Virus Disease 2019 (COVID-19), which is a dangerous communicable disease according to the announcement of the Ministry of Public Health. The amount of rainfall accumulated during the rainy season in Luang Prabang City since Year 2019, which is located above the Xayaburi Hydroelectric Power Plant, was much less than average at 270 millimeters. This amount was the lowest in a hundred years historical record, resulting in lower than average waterflow rate in the Mekong River. Fortunately, the latest situation as of end of April 2020, rain began to fall in many areas in Lao PDR, causing the waterflow rate of the Mekong River to increase from 1,200-1,400 cubic meters per second at the beginning of Year 2020 to 2,200-2,400 cubic meters per second. This can clearly be observed by the color of the Mekong River which began to turn brown. This is a good sign that there is tendency that the amount of rainfall this year should be close to the average and higher than last year. The waterflow rate in the Mekong River has high probability to be back to normal. Most importantly, the color of the Mekong River which has begun to turn brown shows that operation of the Xayaburi Hydroelectric Power Plant does not alter natural flow of sediments in the Mekong River.

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