WHA Utilities & Power Public Company Limited (SET: WHAUP) reported strong financial performance for the first half of 2024, driven by robust growth in its water and power businesses. The company achieved net profit of THB 802 million, representing a 9% increase compared to the same period last year.
Meanwhile, CEO “Somkiat Masunthasuwun” remains confident that the business outlook for the second half of the year is positive, driven by the continuous increase in demand for water and power business. WHAUP plans to expand its investments both domestically and internationally.
WHA Utilities & Power Plc (WHAUP) informed the Stock Exchange of Thailand for the operating results in the first half of 2024, reporting revenue and normalized share of profit of THB 2,005 million, an increase of 7%, and a normalized net profit of THB 682 million, a 5% growth compared to the same period last year. The company also reported a net profit including the foreign exchange impact of THB 802 million, up 9% year-on-year. The growth in normalized net profit was mainly due to the expansion of the domestic water business and significant growth in the normalized share of profit from the international water business. The SPP power business also benefited from softening natural gas costs, which improved profit margins from electricity sales to industrial customers.
Mr. Somkiat Masunthasuwun, Chief Executive Officer of WHA Utilities & Power Plc (WHAUP), revealed that the overall utilities (water) business continued to grow in Q2/2024, with aggregate domestic and international water sales and management volumes reaching 43 million cubic meters, an 6% increase from Q2/2023. This resulted in a total water sales and management volume of 84 million cubic meters for the first half of 2024, an increase 11% year-on-year. The rise in domestic water sales volumes was observed across all products, particularly in raw water and value-added water products, driven by higher demand from new customers who commenced commercial operations in Q3/2023.
The outlook for the water business in the second half of 2024 remains positive, with expected growth from both existing and new customers. Notable projects include a water supply service in the Provincial Waterworks Authority area with a volume of 2.6 million cubic meters per year and a high-quality industrial water production project for PTT Global Chemical Public Company Limited with a volume of 3.5 million cubic meters per year. The company signed water sales contracts for both projects in May 2024.
In the international water business, water sales volumes in Vietnam showed significant growth, primarily due to rising sales from the Duong River project, which expanded its customer base and service areas. In Q2/2024, the company recorded total equity water sales volumes in Vietnam of 17 million cubic meters, marking a 13% growth, contributing to normalized share of profit from the Duong River project of THB 40 million, compared to a loss share of THB 12 million in the same period last year.
In the power business, the company recorded a normalized share of profit from the power business of THB 201 million in Q2/2024, a 27% decrease compared to Q2/2023. For the first half of 2024, the normalized share of profit from the power business was THB 502 million, an increase of 7% year-on-year. The growth was attributable to lower natural gas costs compared to the same period last year, led to improved profit margins from electricity sales to industrial customers.
For the solar rooftop business, the company realized revenue from Private PPA contracts of THB 197 million in the first half of 2024, an 14% increase year-on-year driven by a growth in solar power capacity in commercial operations. As of the end of Q2/2024, the company had 131 megawatts of solar power projects in commercial operations. Additionally, there have been 11 additional PPA contracts signed with a capacity of approximately 13 MW in Q2/2024. The company had a total cumulative contracted capacity of Solar Private PPA of 256 MW at the end of Q2/2024. Which results in a total contracted equity capacity of 932 MW across all types of power plants, consisting of 682 MW in operation and 250 MW under construction and development.
The outlook for WHAUP’s power business in the second half of 2024 is also expected to show relentless growth. This is driven by ongoing investments in clean energy through the development of new innovations and energy solutions. The company anticipates signing additional clean energy project contracts and expanding the installation of electric vehicle (EV) charging stations, adding to the current 34 charging units already installed. These initiatives align with WHA Group’s comprehensive investment plan in Green Logistics.
Mr. Somkiat further stated that in July, the company successfully issued bonds with a total value of THB 2.5 billion. This includes THB 800 million in green bonds. The offering received a strong demand from Institutional and high net-worth investors, being oversubscribed by over three times. This overwhelming subscription reflects confidence in the company’s business potential and strategy, asserting its leadership in utilities and power businesses along with its commitments on environment and sustainability goals.
Additionally, WHAUP was honored the “Good People, Protect the World” Award by the Senate for its commitment to environmental conservation. The company was also selected by Thaipat Institute as a listed company with outstanding performance in Environmental, Social, and Governance (ESG) practices, earning a place on the 2024 ESG Emerging List of sustainable and attractive investment companies. This achievement was further bolstered by WHAUP’s inclusion in the ESG100 list for the first time. These recognitions underscore WHAUP’s position as a leading utilities and energy company committed to sustainable growth.
