Press Releases
CKPower's 2021 operating results hit a record high
The company has earmarked Baht 2.6 billion to invest in 2022, leading to one of the region’s largest producers of electricity from renewables with one of the lowest carbon footprints
Mr. Thanawat Trivisvavet, Managing Director, CK Power Public Company Limited or CKPower (SET: CKP), one of the region's largest producers of renewables-based electricity, stated that the company posted record-high total revenue and net profit in 2021, earning Baht 9,334.7 million in total revenue – a Baht 2,157.2 million or 30.1% increase compared to 2020, and Baht 2,179.0 million in net profit – a Baht 1,774.3 million or 438.4% year-on-year rise.
The primary driver of the 2021 revenue growth was the sales of electricity of the Nam Ngum 2 Hydroelectric Power Plant and Bangpa-in Cogeneration Power Plant, which rose 98.9% and 5.4% respectively. Another contributing factor was a 74.1% increase in project management income, primarily due to the recognition of the management fees of a new hydroelectric power project in the Lao PDR starting from Q4/2020 onwards.
The surge in the 2021 net profit was primarily attributable to the growth of the sales of electricity of the Nam Ngum 2 Hydroelectric Power Plant and the rise in share of profit from investment, derived mostly from an increase in the net profit of the Xayaburi Hydroelectric Power Plant resulting from a 20.0% boosted inflow volume through the power plant compared to the previous year. In addition, the Xayaburi Hydroelectric Power Plant reported reduced financial expenses due to loan principal repayment and a decline in interest rates from the previous year. Furthermore, as CKPower increased its shareholding in the Xayaburi Hydroelectric Power Plant from 37.5% to 42.5%, the recognized share of profit grew accordingly.
Mr. Thanawat said the 2021 operating results set a historic high both in terms of the total revenue and the net profit. The increased output of all power plants under CKPower and its expanded shareholding in the Xayaburi Hydroelectric Power Plant were the main contributors to this growth, which not only exceeded the figures the company had projected but also testifies to the effectiveness of CKPower's management approach in generating returns for its shareholders and stakeholders.
Beyond delivering reasonable returns to all stakeholders, CKPower also seeks to become one of the region's largest producers of electricity from renewables with one of the lowest carbon footprints in support of Thailand's effort to achieve net-zero greenhouse gas emissions by 2065.
"For 2022, CKPower has planned to invest in renewable energy projects both in Thailand and Southeast Asia and has allocated a budget of Baht 2,600 million for capital injection to the development of a new hydroelectric power project in the Lao PDR in proportion to our shareholding and for investing in other projects. All of our new installed capacity will be based on renewables, including solar power, hydro power and wind power and we will increase our installed capacity to 4,800 megawatts by 2024, which will result in 95% of our company's total electricity generating capacity being based on renewables," added Mr. Thanawat.
Furthermore, CKPower has drawn up plans to advance its business sustainably across social and environmental dimensions for 2022 both in Thailand and the Lao PDR with the concept "Collaboration for Better Quality of Life in Communities and Society" through CSR activities that foster engagement with employees and local communities. Activities to be undertaken in Thailand include the development of Wat Na Huay area in Pranburi District, Prachuap Khiri Khan, through drainage system improvement and solar rooftop installation in order to pass on a development approach guided by self-sufficiency and sustainability. As for social contribution activities planned for the Lao PDR, CKPower will carry out a development project for Hin Hua Suea Nursery School in Xaysomboun Province, the Lao PDR, which aims to promote educational development in the areas surrounding the Nam Ngum 2 Hydroelectric Power Plant through the construction and improvement of buildings, electrical systems, bathrooms, playgrounds, and other areas in the school and the installation of solar-powered water purifiers to provide access to clean drinking water. CKPower will also initiate a food waste composting project in the Xayaburi Hydroelectric Power Plant, where food scraps are composted into fertilizers for use in trial plots, the knowledge from which will then be transferred to the surrounding communities.
CK Power Public Company Limited (CKP) is listed on the Stock Exchange of Thailand (SET) and is included in the SET 100 Index, the SET Thailand Sustainability Investment (THSI) Index, and the SETCLMV Exposure Index, and carries an A/Stable TRIS rating.