GPSC Records 70% Decline in 2Q Net Profit as Higher Material Costs Pressure Results

Global Power Synergy Public Company Limited (SET: GPSC) has announced its 2Q22 consolidated financial statement through the Stock Exchange of Thailand as follows;

GPSC reported a net profit of THB 683 million, decreased by THB 1,618 million or 70% from 2Q21 which was mainly due to significantly higher natural gas and coal price, resulting in lower margin in selling electricity to industrial customers, and the electricity and steam sales volume to industrial customers decreased slightly. Meanwhile, energy dispatch to EGAT increased. However, there was an increase in gross profit of IPP business due to higher Energy Payment (EP) from higher electricity sales volume corresponding to higher dispatch instructed by EGAT and the generation using diesel instead of natural gas, resulting in higher margin from electricity sales. In addition, there was an increase in profits from Xayaburi hydro power plant due to higher water level than the same period of last year. 

When comparing to 1Q22, net profit for the Company increased by THB 371 million or 118% mainly due to an increased in shares of profit from Xayaburi hydro power plant and higher SPP business’s operating results in line with the fuel adjustment charge (Ft) increased from 1.39 to 24.77 Satang per unit started from May. Furthermore, the electricity and steam sales volume increased, and the Glow Energy Phase 5 has resumed its normal operation since March 9, 2022, led to higher energy margin. In addition, IPP’s gross profit increased due to lower GHECO-One’s unplanned outage in 2Q22, resulting in higher Availability Payment (AP).

The Company recognized synergy value from the acquisition of GLOW amounting THB 561 million (after tax) in 2Q22, mainly from power and steam network integration, commercial activities especially cost optimization, production and expanding customers base, production costs management and debentures management.