- Q4/2023 projections look positive with continued favorable water trends and financial cost saving for XPCL after its green bond issuance.
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 with lowest carbon footprint, stated that CKPower’s reported positive operating results for both Q3/2023 and the nine months of 2023 despite impacts of El Niño in the first half of the year. Thanks to a significant positive change of the water inflow beginning in August 2023, the company has been able to improve its power production plans to better align with the higher water volume since the end of Q3, which is expected to have a positive impact on the operating results for the rest of the year.
CKPower recorded a total revenue of Baht 2,649 million for Q3/2023, a Baht 846 million or 24.2% year-over-year decrease, and a net profit attributable to equity holders of the company of Baht 1,022 million, a Baht 440 million or 30.1% year-over-year decline, while the total revenue for the nine months of 2023 amounted to Baht 7,901 million, a Baht 796 million or 9.2% drop compared to last year, and the net profit attributable to equity holders of the company for the nine months of 2023 stood at Baht 919 million, a Baht 1,445 million or 61.1% decrease from previous year. The decline was attributed primarily to a reduced share of profit from its investment in Xayaburi Power Company Limited (XPCL) resulting from a dip in the volume of electricity sold in accordance with the decrease in water volume as well as to the increase in XPCL’s financial expenses due to the global interest rate trend.
Concurrently, Nam Ngum 2 Power Company Limited (NN2) reported a decrease in electricity sales and an increase in expenses due to a major overhaul, which was part of the routine maintenance plan, while the Bangkhenchai Company Limited (BKC) saw a fall in its revenue as the adder expired.
For Q3/2023 and the nine months of 2023, CKPower recognized a total of Baht 816 million and Baht 555 million in share of profit from investment respectively after loss recognition in Q2/2023 and 1H/2023.
Moreover, XPCL succeeded in issuing green debentures worth Baht 3,500 million with fixed interest rates of 5.15-5.55% per annum to institutional and high-net-worth investors on October 26, 2023. The funds raised have been allocated to settle XPCL’s existing floating rate loans, mitigating interest rate volatility and financial burdens. This strategic move is expected to bolster CKPower’s profit share from investments and enhance overall operating outcomes, paving the way for strong growth.
As for its financial position as at September 30, 2023, CKPower had a net interest-bearing debt to equity ratio of 0.59 times, which is significantly lower than the debenture requirement of no more than 3.0 times, demonstrating the company’s financial strength.
“We are honoured to announce that CKPower has once again been recognized for our unwavering commitment to corporate governance. On October 31, the Thai Institute of Directors (IOD) awarded us an ‘Excellent’ Corporate Governance Score in the 2023 Corporate Governance Report of Thai Listed Companies (CGR). This marks our sixth consecutive year of achieving this distinction. Furthermore, CKPower has been awarded the “AAA” SET ESG Ratings for the year 2023, the highest achievable level. This continues its impressive track record, having been included in the lists for the past four years (formerly known as THSI). These achievements not only mirror our dedication to our vision of ‘Renewable Electricity Towards a Low-Carbon Society’ but also emphasize our transparent, efficient, and accountable management approach that value all stakeholders. These milestones affirm CKPower’s steadfast progression in sustainability, driven by our comprehensive “C-K-P” strategy or 5-Year Strategic Plan Towards Sustainability (2022 to 2026). This strategy, which embodies all facets of ESG, aims to fortify energy security and help drive the region’s sustainable energy transition for the years to come,” stated Mr. Thanawat.
