CKPower, with strong growth continuing into Q3/2021, achieves a new-high Net Profit of Baht 1,235 million
Seeks to generate revenue from clean energy and strives towards net zero greenhouse gas emissions
Mr. Thanawat Trivisvavet, Managing Director of CK Power Public Company Limited (CKPower), stock symbol “CKP”, which has been included on the 2021 Thailand Sustainability Investment (THSI) list for the second consecutive year, announced the performance of CKPower group for Q3/2021 and nine months of 2021, stating that CKPower reported a record high profit due to the ability of the Nam Ngum 2 Hydroelectric Power Plant (“NN2”) and the Xayaburi Hydroelectric Power Plant (“XPCL”) to attain clean energy-based power production targets.
Mr. Thanawat said that CKPower’s operating results in nine months were very satisfactory, with the Company reporting in Q3/2021 a total revenue of Baht 2,508.8 million, an increase of Baht 377.9 million or 17.7%, and Net Profit attributable to Equity Holders of the Company of Baht 1,234.9 million, a year-on-year increase of Baht 403.6 million or 48.6%, marking a record high for CKPower. The growth in the operating results was driven primarily by the sales of electricity of NN2 of Baht 998.7 million, a 31.8% year-on-year increase. Another major contributing factor was a 49.8% increase in the share of profit, mainly from its investment in XPCL, which had been able to generate a total revenue of Baht 4,799 million, from higher average water flows through the power plant compared to the previous year. This, coupled with reduced financial expenses due to loan principal repayments and a decline in interest rates from the previous year, enabled XPCL to earn Baht 2,366 million in net profit. Additionally, the Company increased its shareholding in XPCL to 42.5% at the end of Q2/2021; therefore, the recognized share of profit from XPCL grew accordingly.
As for the operating results in nine months of 2021, CKPower reported a total revenue of Baht 6,905 million, a Baht 1,180.8 million or 20.6% year-on-year increase, and net profit of Baht 2,056.5 million, a Baht 1,659.6 million or 418.1% year-on-year increase, also a historic high for the Company. Similarly, the factors driving this new high included NN2’s 77.8% increased sales of electricity and a 479.1% increased share of profit from CKPower’s investment in XPCL.
As for Thailand’s overall power generation industry, there has been greater promotion of the use of renewable energy for power production for the purpose of decarbonization – a trend that aligns with the investment policy of CKPower, an expert in the development of a large-scale hydroelectric power plants.
“At present, CKPower’s investment in renewable power plants, including hydroelectric and solar power plants, accounts for 89% of its total installed capacity. The Company aims to maintain its investment in renewable power plants of not less than 85% of its total installed capacity, in line with the Thai government’s target to achieve net zero greenhouse gas emissions by 2065,” added Mr. Thanawat.
With the Company’s adaptability, reflected in its continuous positive development, CKPower has received the CG score of “Excellent” for the fourth consecutive year in the 2021 Corporate Governance Report of Thai Listed Companies (CGR), organized by the Thai Institute of Directors (IOD) with the support of the Stock Exchange of Thailand (SET). This achievement has not only brought pride to CKPower but is also a clear reflection of the approach it has always adhered to, placing emphasis on sustainability issues, covering environmental, social, and governance (ESG) practices, as well as the principle of transparent disclosure and the roles of stakeholders, in accordance with the expectations of investors, concluded Mr. Thanawat.