Gulf Energy Development Public Company Limited (SET: GULF) reported the financial results for Q3/24 with a total revenue of THB 31,259 million, a growth of 11% from Q3/23 and a core profit of THB 4,710 million, a 12% increase from THB 4,203 million in the same quarter of the previous year.
The growth was primarily driven by the improved performance of the gas-fired power generation business. Gulf Pluak Daeng (GPD), an IPP power project under the IPD group with a total installed capacity of 2,650 megawatts, commenced commercial operation of units 2 and 3 in October 2023 and March 2024, respectively.
As a result, in Q3/24, GULF realized the performance of GPD units 1-3, with a combined installed capacity of 1,987.5 megawatts. Additionally, Hin Kong Power (HKP), an IPP power project with a total installed capacity of 1,540 megawatts, commenced commercial operation of unit 1 (installed capacity of 770 megawatts) in March 2024. Therefore, GULF also recognized the contribution of HKP unit 1 in this quarter. Furthermore, GULF recognized the share of core profit from the Jackson Generation, a gas-fired power plant in the United States, which increased significantly from THB 150 million in Q3/23 to THB 414 million in Q3/24. This was mainly due to the reversal of over accrued property tax for 2023 and the first 9 months of 2024, amounting to THB 326 million.
In addition, in Q3/24, GULF recognized a share of core profit from the investment in INTUCH of THB 1,583 million, an increase of 4% YoY from THB 1,527 million in Q3/23, primarily due to the improved performance of ADVANC.
However, these positive factors were offset by the decline in core profit from the Gulf Sriracha (GSRC) power project, an IPP under the IPD group, due to the recognition of maintenance expenses for all 4 units which gradually underwent scheduled maintenance between Q3/23 and Q3/24, as well as the lower electricity sales to the Electricity Generating Authority of Thailand (EGAT), with the average load factor decreasing from 79% in Q3/23 to 69% in this quarter. Moreover, 2 IPPs and 7 SPPs under the GJP group reported lower profits, primarily due to higher corporate income tax expenses from foreign exchange gain in this quarter. The 2 IPPs, namely GNS and GUT, also experienced lower electricity sales to EGAT, with the average load factor decreasing from 21% in Q3/23 to 7% in Q3/24. Furthermore, the 12 SPPs under the GMP group recorded lower gross profit margins due to a significant decrease in the Ft rate, which fell from 0.68 THB/kWh in Q3/23 to 0.40 THB/kWh in Q3/24, while the average gas cost fell from 345.97 THB/MMBtu in Q3/23 to 333.79 THB/MMBtu in this quarter.
EBITDA for Q3/24 was THB 9,843 million, a 5% increase compared to THB 9,364 million in Q3/23. The net profit attributable to the parent company was THB 6,030 million, a 79% increase from THB 3,360 million in Q3/23. In Q3/24, GULF recorded unrealized gains from exchange rates from the Thai baht’s appreciation against the US dollar, which strengthened from THB 37.01/USD at the end of Q2/24 to THB 32.46/USD at the end of Q3/24. However, the recording of such transaction is an accounting transaction that does not have an impact on GULF’s cash flow and performance.
As of September 30, 2024, GULF reported total assets of THB 486,837 million, total liabilities of THB 338,421 million and shareholders’ equity of THB 148,416 million, with a net interest-bearing debt to equity ratio of 1.71, down from 1.85 at the end of June 2024, reflecting an increase in shareholders’ equity due to improved operational performance of the Group.
Ms. Yupapin Wangviwat, Deputy Chief Executive Officer and Chief Financial Officer, GULF, stated, “GULF expects continued revenue growth in Q4/24 with projects proceeding as planned, including the commercial operation of GPD unit 4 (662.5 megawatts) which successfully commenced commercial operation on October 1, 2024, and the full-quarter contribution of this unit will be recognized in Q4/24. Additionally, the 5 domestic solar farms and solar farms with battery energy storage systems projects, with a total installed capacity of 532 megawatts, are set to begin commercial operations in December 2024. Furthermore, as fourth quarter is the high season for wind power projects, we expect improved performance from the 3 wind projects under Gulf Gunkul Corporation in Thailand and BKR2 project in Germany. Moreover, the performance of ADVANC is expected to continue to grow due to higher users and ARPU.”
Ms. Yuppapin further stated, “In 2025, we anticipate substantial growth following the completion of the amalgamation between GULF and INTUCH. The new company (NewCo) will hold a direct stake of 40.4% in ADVANC, allowing for a significant increase in share of profit. The conditional voluntary tender offer for ADVANC and THCOM is expected to take place between Q4/24 and Q1/25, with the establishment of NewCo anticipated to be completed in early Q2/25.
GULF expects an increase in installed capacity of approximately 1,470 megawatts in 2025. The HKP unit 2 (770 megawatts) will commence commercial operation on January 1, 2025, and additional solar farms and solar farms with battery energy storage systems, totaling 7 projects with an installed capacity of approximately 600 megawatts, will begin operations. Additionally, the solar rooftop projects under GULF1 are expected to achieve approximately 100 megawatts of additional operational capacity by the end of 2025, resulting in increased profits upon the commercial operation of the project. For the LNG import business, GULF plans to import 70 cargos, or approximately 5 million tonnes, to support electricity production of GSRC, GPD and HKP projects.
Furthermore, the GSA DC (data center), with a total capacity of 50 megawatts, is under construction. The first phase, with a capacity of 25 megawatts, is scheduled to open for operation in April 2025. Meanwhile, the cloud business, in collaboration with Google to offer the Google Distributed Cloud air-gapped service, is planned to open for service in Q2/25, targeting both government and private sectors across industries such as healthcare, energy and utilities, and financial institutions. Moreover, the digital asset exchange business under the Binance TH by Gulf Binance platform, which has been in operation since January, has received robust interest from investors, securing a market share of over 20%, in line with our targets. Gulf Binance also continues to expand investment options by introducing a wider selection of coin pairs for users.”
