Message from Chairman
To: Shareholders and Stakeholders of All Sectors
We were able to produce the highest net profit ever recorded at Baht 2,436 Million, representing an increase of 12 percent
This was achieved through the strong performance of the Company’s hydroelectric power plant, which employs sustainable energy without relying on volatile fossil fuel sources. This is a testament to the success in the Company’s vision, which focuses on investments in the power plant producing power from environmentally friendly, clean, and renewable energy
In 2022, the economy in both the public and private sectors began to show signs of recovery following a gradual improvement in the COVID-19 situation. However, new geopolitical factors and the implementation of various countries' monetary policies simultaneously led to volatility in the global economy, raising energy prices and inflation rates. Nevertheless, CK Power Public Company Limited and its affiliated companies continue to grow, posting the highest net profit ever recorded at Baht 2,436 Million, representing an increase of 12 percent when compared to net profit of Baht 2,179 Million in 2021. This was achieved through the strong performance of the Company's hydroelectric power plant, which employs sustainable energy without relying on volatile fossil fuel sources. This is a testament to the success of the Company's vision, which focuses on investments in the power plant producing power from environmentally friendly, clean, and renewable energy. As a result, the Company was able to achieve solid performance despite the context of fluctuating energy prices.
To attain a growth ambition of investing and developing clean energy as well as laying the groundwork for energy security, both at home and abroad, the issue of sustainability has thus been defined as a main mission and corporate culture which have been relentlessly pursued. To that end, CKPower remains committed to being one of the region’s largest producers of electricity from renewables with one of the lowest carbon footprints, as evidenced by the fact that the Company received the ASEAN CG Scorecard Award (ACGS) in the category of ASEAN Asset Class, a recognition given at the ASEAN level to listed companies with the scores of 97.50 or higher from the ASEAN-wide average assessment, accorded by ASEAN Capital Markets Forum (ACMF) and Asian Development Bank (ADB) in order to acknowledge and honor the listed companies in ASEAN with outstanding good corporate governance practices and ESG information disclosure on a continuous basis, as well as placing great significance to the sustainable growth in accordance with international investment standards and CKPower’s vision which strives for conducting a sustainable business while also striking the balance of our world in order to achieve the goal of net zero greenhouse gas emissions by 2050.
In respect of the operating results, the overall net profit in 2022 increased by 12 percent compared to that in 2021, due to the recognition of share of profit from the Xayaburi Hydroelectric Power Plant, which was significantly higher than that in 2021, proving that the Company has a stable financial position for future business operations, with a low net interest-bearing debt to equity ratio of merely 0.59 times, while also having constant cash flows from the long-term Power Purchase Agreement with Electricity Generating Authority of Thailand (EGAT). These demonstrate the Company’s efficient management guidelines which maximize returns for shareholders and stakeholders in spite of any situations. Moreover, Xayaburi Power Company Limited (XPCL), CKPower’s associated company, has issued its first-ever Green Debentures in Thailand worth Baht 8.4 Billion, which included a greenshoe option worth Baht 3.4 Billion. The Green Debentures were issued under the Green Bond Framework which has been reviewed by DNV, the world's leading Independent External Reviewer, that they are in line with the Green Bond Principles 2021, Green Loan Principles 2021, and ASEAN Green Bond Standards 2018, as proven by the International Finance Award 2022's Best Green Bond Hydropower Plant Framework, for XPCL's commitment to environmental standards.
With regard to Risk Management, the Company becomes an official supporter of the Task Force on Climate-Related Financial Disclosures (TCFD Supporter), and in terms of information technology, the Company has obtained ISO 27001 certification, a standard for information security systems, in accordance with the organization’s policy and risk management. To this end, the information security system is defined as part of business continuity management alongside the enforcement of the Personal Data Protection Policy (PDPA) in order to respect the privacy rights of the Company’s stakeholders, executives, and employees, as well as to maintain the information system in a ready-to-use condition at all times.
With regard to Sustainability, the Company’s sustainability strategies have been formulated based on the organization’s core challenges which are consistent with the organization’s vision of being “to be a leading renewable energy company in Thailand and ASEAN region with the efficient generation”, while simultaneously maintaining the balance of the ecological and environmental systems, fostering the well-being in communities and the society. The Company’s conceptual framework of sustainability encompasses three main strategies, “C-K-P," covering significant issues in the dimensions of the environment (C - Clean Electricity), society (K - Kind Neighbor), and governance and economy (P - Partnership for Life), as well as establishing goals and Key Performance Indicators, and concrete operational planning for a period of five years (2022-2026). The Company’s operations, which place a high value on responsibility for society and stakeholders across the value chain in conformity with the United Nations Sustainable Development Goals (UNSDGs), are preeminent and widely recognized. Therefore, it marks another year of pride in which the Company received the prestigious awards, both local and international.
CKPower, the only company in the energy sector, has been listed in the ESG Emerging List, from the Thaipat Foundation; and the Company was also included in the Thailand Sustainability Investment (THSI) list by the Stock Exchange of Thailand, which has been the Company’s 3rd consecutive year of qualifying such inclusion, with AAA scores; and has been presented with SET Awards 2022 in the category of Rising Star Sustainability Awards for Sustainability Excellence for the first year. Moreover, the Company received the “Excellent” Corporate Governance score, which has been the Company’s 5th consecutive year of achieving such score, from the Thai Institute of Directors (IOD).
Furthermore, in terms of innovation development aimed at energy consumption reduction and reduction in greenhouse gas emissions, CKPower is one of driving forces behind and contributing to the achievement of carbon neutrality and net zero greenhouse gas emissions at the corporate level by 2050 in order to uphold Thailand's policies and the global community’s goals in compliance with the Paris Agreement, as evidenced by the fact that CKPower received the Asian Power Awards 2022, which has been the Company’s 3rd consecutive year, for Innovative Power Technology of the Year, as a result of various innovative projects devised by staff to help diminish the environmental impacts, as well as receiving the certificate attesting to the accomplishment of requirements of the product's carbon footprint assessment, including being recognized as the leader in greenhouse gas management.
With regard to social care, the Company won the Asia Responsible Enterprise Awards 2022 under Social Empowerment category, which was presented by Asia's leading non-governmental organization for entrepreneurship; while Bangpa-in Cogeneration Power Plant was presented with the CSR-DIW Award 2022 by the Department of Industrial Works, Ministry of Industry, for the first year as an organization which have sustainable business operations with responsibility for the Environment, Social, and Governance (ESG), reflecting the commitment to developing business management to ensure the sustainable growth, constantly generating long-term, stable returns, as well as adhering to ethical business practices.
All of these remarkable achievements mark another milestone and are a good reminder of the importance of driving the organization towards stable and sustainable growth. In the previous year, the Company was assuredly able to achieve its goals and make significant strategic progress in terms of growth, profitability and sustainability, all of which have enhanced the confidence of investors and stakeholders of all sectors in the long run.
On behalf of all directors, executives, and employees, I would like to extend my gratitude to shareholders, financial institutions, alliances, and stakeholders of all sectors for their trust and great sustained support in our business operations in the pursuit of the economic development of the country and the ASEAN region, along with the enhancement of quality of life of communities, by creating sustainable value and maintaining competitiveness to keep up with the ever-changing world. Ultimately, with the Company’s commitment to conducting the business based on good corporate governance, the Company will conduct its business operations in a way that upholds integrity, transparency, and good corporate governance, while also playing a part in contributing to social, community and environmental development in order to collaboratively drive for stable, sustainable growth across all sectors.
Dr. Thanong Bidaya
Chairman of the Board of Directors