Sarath Ratanavadi, CEO of Gulf Energy Development Public Company Limited (SET: GULF), announced that the new company established after the merger with Intouch Holdings Public Company Limited (SET: INTUCH) will be in effect on April 1.
The new entity will be operated under the name “Gulf Development Public Company Limited” with the ticker symbol as GULF. Trading of the shares is expected to commence by April 3. The merger is anticipated to strengthen the financial position of the new company significantly.
The investment budget for the new entity over the next five years is set at approximately THB 100 billion, primarily allocated for expanding investments in clean energy, accounting for 60-70%, especially overseas where substantial opportunities still exist. Meanwhile, the investment budget for 2025 is to be around THB 20 billion, excluding new projects, focusing on planned ventures.
Notably, the new company will directly hold a 40% stake in Advanced Info Service Public Company Limited (SET: ADVANC), allowing GULF to recognize profit shares of no less than 3.5 billion baht per year. Cash flow and dividends are projected to increase to over THB 6 billion annually.
Additionally, the debt-to-equity (D/E) ratio will decrease from the current 1.8 times to 0.8 times, and credit ratings are expected to improve, subsequently reducing the company’s financial costs from the current loan costs of approximately 3%.
Restructuring into Four Key Business Segments
Post-merger, the new entity will diversify into four main business segments: 1. Energy, 2. Infrastructure, 3. Digital, and 4. Other investments, such as stakes in ADVANC and Thaicom Public Company Limited (SET: THCOM). The profit distribution is anticipated to be around 60% from the energy sector and 40% from the remaining businesses. The company targets a revenue growth of 20-25% this year.
Aggressive Expansion into Data Centers
GULF is aggressively investing in data centers, with Phase 1 currently having a capacity of 24 megawatts, expected to be completed by 2Q25. The capacity has been almost fully booked by clients.
Plans for expansion into Phase 2 and 3 with greater production capacity are underway, and a total capacity of 200 megawatts is expected in 2-3 years. Meanwhile, GULF has partnered with Google and other alliances for its Cloud Services business.
After establishing the new company, GULF will see more proactive investments, particularly in foreign power plants, where there is significant interest from potential partners, as well as further phases of data center and digital business expansion, Sarath added.
Regarding small modular reactor (SMR), hydrogen energy, and carbon capture and storage (CCS) projects, the company is not currently interested in pursuing such investments. Similarly, no additional investments are planned for new infrastructure projects like ports or motorways. The focus remains on data centers and digital businesses, which offer higher returns.
For the 2025 performance projection, the company aims for a revenue increase of 20-25% compared to the previous year due to the addition of 1,500 megawatts in power production capacity. This is attributed to various projects, including the second unit of the Hin Kong Power Project with an installed capacity of 770 megawatts, which commenced commercial operations (COD) in January.
Additionally, 5 solar farm projects and 2 solar farms with battery energy storage systems projects are collectively anticipated to add 597 megawatts, with COD planned for November-December 2025.
Furthermore, GULF1’s solar rooftop project will add another 110 megawatts this year, ramping up power generation capacity from 15,100 megawatts to 16,577 megawatts.
Acquisition Strategy for KBANK Shares
Sarath further discussed GULF’s investment in acquiring the shares of Kasikornbank Public Company Limited (SET: KBANK). Besides energy, GULF is diversifying its investment portfolio overseas.
The investment in KBANK is seen as a general investment aimed at long-term returns. GULF is likely to divest if the stock price rises significantly, viewing it as an investment subject to conditions where both buying and selling are possible, depending on the price. However, if KBANK’s stock price falls to 90 baht, the company would likely purchase additional shares.
As of the most recent record date on March 13, 2025, GULF became the fifth-largest shareholder of KBANK. This accounts for 3.25% of the total voting rights in the company.
Key GULF shareholders include:
- Thai NVDR Company Limited: 365,394,442 shares (15.42%)
- STATE STREET EUROPE LIMITED: 177,909,519 shares (7.51%)
- SOUTH EAST ASIA UK (TYPE C) NOMINEES LIMITED: 114,429,498 shares (4.83%)
- Social Security Office: 80,643,140 shares (3.40%)
- GULF
As for the natural gas business, GULF is the first private operator importing liquefied natural gas (LNG) to supply its power plants, with an expected import of 4-5 million tonnes this year, following an import of 600,000 tonnes in 2024. A long-term purchase agreement for LNG (10 years) amounting to 2-3 million tonnes is anticipated to be signed this year.
