Electricity sales boost BGRIM’s revenue

B.Grimm Power Plc (BGRIM) reported revenue growth for fiscal year 2021 of 5.8% to a total of 46.6 billion baht, citing an increase in stronger power sales.

However, its normalized net profit was affected by higher natural gas costs.

Revenue growth was supported by a 2.4% increase in electricity sales to 14,794 gigawatt hours.

Harald Link, chairman and chairman of BGRIM, said the 8.8% rise in the price of natural gas to 266 baht per million BTU in 2021 and 335 baht per million BTU in the fourth quarter of 2021 were key factors that depressed the company’s normalized net profit for the year. 6.8% to 2.4 billion baht.

Mr Link warned that 2022 would see a further rise in natural gas prices.

The company has taken steps to deal with soaring gas prices by tightening cost and expense controls, which should save at least 100 million baht in expenses, he said.

BGRIM is preparing to import liquefied natural gas (LNG) early next year, which should save about 7-10% of this fuel cost.

Meanwhile, the company is on track to secure a power purchase agreement for at least 1,000 megawatts this year, as well as begin a commercial race for five small power generator replacement projects with a total installed capacity of 700 MW, a move that will reduce natural gas consumption by around 15%, Mr. Link said.

He highlighted six fundamental foundations of the company’s future plans: its commitment to zero carbon footprint by 2050; digital transformation; processing improvement and cost control plans; import LNG to manage natural gas costs; the implementation of a pilot project for energy trading; and forming alliances with leading partners.

In addition, the Board of Directors’ resolution of February 24, 2022 approved the progressive issuance of debentures not exceeding the outstanding balance of 100 billion baht during the period 2022-2026 to strengthen the capital structure and support the growth target of 10,000 MW.

BGRIM announced a dividend of 0.27 baht per share for the second half, maintaining the dividend payout rate at 45% of normalized net profit.

Sallie R. Loera