- CKPower reports a dip in Q1/2024 operating results in line with seasonal factors
- CKPower has approved Baht 691 million for a dividend payment of Baht 0.085/share scheduled for May 23, 2024, with Q2 performance expected to look up with the arrival of the rainy season.
Mr. Thanawat Trivisvavet, Managing Director, CK Power Public Company Limited or CKPower (SET: CKP), one of the region’s largest electricity producers from renewables with one of the lowest carbon footprints, disclosed the Q1/2024 operating results for the Company and its subsidiaries, stating that the Q1 2024 gross profit was Baht 560 million, a 20.5% increase from the same period of the previous year. A key positive factor was the Nam Ngum 2 Hydroelectric Power Plant (NN2), which had higher reserved water levels and inflows into its reservoir than the same period of the previous year.
Overall in Q1/2024, CKPower reported a total revenue of Baht 2,491 million, a Baht 195 million or 7.3% decrease compared to the same period last year, primarily due to the lower revenue from electricity and steam sales from Bangpa-in Cogeneration Limited (BIC) as a result of lower average natural gas prices and lower retail Ft compared to the same period of the previous year.
CKPower also recorded Baht 461 million in net loss attributable to equity holders of the Company, an increase in loss of Baht 357 million from the same period last year. The main reasons were the recognition of a Baht 570 million share of loss from investments in associates in Q1/2024, resulting from the lower than average water inflow through the Xayaburi Hydroelectric Power Plant operated by Xayaburi Power Company Limited (XPCL) compared to the same period last year leading to reduced electricity sales of XPCL; higher finance costs of XPCL due to rising global interest rates; and the recognition of a share of foreign exchange loss from the translation of US dollar-denominated loan based on the equity stake in the Luang Prabang Hydroelectric Power Project which was under construction.
Mr. Thanawat said that CKPower reported a loss of financial results in the first quarter of this year in line with the trend of the seasonal water levels; typically, the water levels are at their lowest in the first quarter, which coincides with the dry season. Additionally, the Company recognized Baht 219 million in foreign exchange loss impacting net profit attributable to equity holders of the Company as a result of the significant Baht depreciation in Q1/2024. The loss was largely brought on as the Luang Prabang Hydroelectric Power Project began to draw down its US dollar-denominated loans for construction starting from mid-2023. However, excluding the foreign exchange loss from non-cash transactions and did not impact the Company’s cash inflow, CKPower would recognize a core net operating loss of Baht 242 million, an increase in loss of Baht 163 million compared to the same period last year.
Mr. Thanawat further stated that CKPower is confident that investing in the Luang Prabang Hydroelectric Power Project, which will serve as a source of clean eco-friendly electricity, will be beneficial despite the high investment required for its construction. Once completed, the project will play a significant role in reducing Thailand’s greenhouse gas emissions and generate stable and sustainable long-term cash flows and returns for the Company. As of the end of Q1/2024, CKPower’s financial position remains strong, with a net interestbearing debt to total shareholders’ equity ratio of only 0.55 times and a cash balance of over Baht 5.5 billion. In April, CKPower issued unsubordinated and unsecured debentures with a debentureholders’ representative worth Baht 4 billion for tenures of 2-5 years at an average interest rate of approximately 4.1% per annum to fund projects under construction and serve as working capital. This reflects CKPower’s liquidity management capabilities and investors’ confidence in its project investments.
“Additionally, on April 25, the 2024 Annual General Meeting of Shareholders approved a dividend payout of Baht 0.085 per share from 2023 operating results, totaling approximately Baht 691 million. The dividend will be paid to eligible shareholders based on the record date of May 8, 2024, with the payment date scheduled for May 23, 2024. The relatively high water levels at NN2 in Q1/2024, coupled with seasonal water inflow factors, are expected to positively contribute to the Company’s performance in the remaining quarters of the year,” Mr. Thanawat added.
“Moving forward, CKPower has set growth targets to develop renewable energy and strengthen energy security foundations, aiming to support the sustainable advancement of Thailand towards a low-carbon society. In 2023, the renewables-based power plants under CKPower Group generated over 8.5 million megawatt-hours (MWh) of clean electricity for Thailand, accounting for more than 17% of the renewable energy used in the country in 2023 and contributing approximately 4.4 million tCO2e GHG avoidance annually. This progress represents a significant step towards our long-term goal of achieving net zero emissions by 2050,” Mr. Thanawat stated.
