Gulf Energy Development Public Company Limited (SET: GULF) reported strong financial results for 2024, with total revenue of THB 124,585 million, an increase of 7% from THB 116,951 million in 2023, and a core profit of THB 18,400 million, an 18% increase from THB 15,644 million in the previous year.
The improved performance of the Group was primarily driven by the growth of the gas-fired power generation business. Gulf Pluak Daeng (GPD) power project, an IPP under the IPD group with a total installed capacity of 2,650 MW, commenced commercial operation of units 3 and 4 in March and October 2024, respectively, marking the completed commercial operation of the GPD project as scheduled. Additionally, Hin Kong Power (HKP) power project, an IPP with a total installed capacity of 1,540 MW, commenced commercial operation of unit 1 (installed capacity of 770 MW) in March 2024. Furthermore, GULF recognized a share of core profit from GJP group of THB 1,940 million in 2024, which represents a 6% YoY increase. This increase was due to higher electricity sales volume to Electricity Generating Authority of Thailand (EGAT) from the 7 SPPs, with the average load factor increasing from 72% in 2023 to 79% in 2024. This was due to scheduled maintenance shutdowns (B-inspection) in 2023.
However, in 2024, the Gulf Sriracha (GSRC) power project, an IPP under the IPD group, saw a decline in core profits compared to 2023 due to the recognition of maintenance expenses for all 4 units which gradually underwent scheduled maintenance between Q3/23 and Q3/24 , despite an increase in electricity sales to EGAT, with the average load factor increasing from 73% in 2023 to 75% in 2024. Additionally, the 12 SPPs under the GMP group experienced a slight decline in core profits due to lower gross profit margins from electricity sales to industrial users, as Ft decreased at a faster rate than the average natural gas cost. The average Ft rate fell from 0.89 THB/kWh in 2023 to 0.40 THB /kWh in 2024, while the average natural gas cost decreased from 385.4 THB/MMBtu in 2023 to 326.1 THB/MMBtu in 2024. Furthermore, electricity sales to industrial users declined due to lower demand from automotive and electronic components customers; however, as industrial customers account for only 6% of the total electricity sold, the impact on the Company was limited.
For the gas business, GULF realized a share of core profit from PTT NGD of THB 1,077 million in 2024, a 172% increase from THB 396 million in 2023, primarily driven by a significant decrease in the average natural gas cost, which fell from 428.8 THB/MMBtu in 2023 to 342.9 THB/MMBtu in 2024, while the average fuel oil price increased from 73.2 USD/barrel in 2023 to 75.7 USD/barrel in 2024, as the majority of the project’s revenue is linked to fuel oil price while cost is dependent on natural gas price.
In addition, in 2024, GULF recognized a share of core profit from the investment in Intouch Holdings Plc. (INTUCH) of THB 6,345 million, an increase of 4% YoY from THB 6,101 million in 2023. This was primarily driven by the improved performance of Advanced Info Service Public Company Limited (ADVANC), supported by higher ARPU from a strategic focus on premium package offerings, along with an expanding customer base and effective cost management.
EBITDA for 2024 was THB 39,934 million, a 13% increase compared to THB 35,370 million in 2023. The net profit attributable to the parent company (including foreign exchange impacts) was THB 18,170 million, a 22% increase from THB 14,858 million in 2023. This was due to a lower net foreign exchange loss, which amounted to THB 176 million in 2024, compared to THB 576 million in 2023. However, the recording of such transactions is an accounting transaction that does not have an impact on GULF’s cash flow and performance.
As of December 31, 2024, GULF reported total assets of THB 496,202 million, total liabilities of THB 342,363 million and shareholders’ equity of THB 153,840 million, with a net interest-bearing debt to equity ratio of 1.80, rising from 1.69 at the end 2023 due to an increase in long-term liabilities from the issuance of THB 45 billion in debentures in 2024.
Ms. Yupapin Wangviwat, Deputy Chief Executive Officer and Chief Financial Officer, GULF, stated, “The Company is currently in the process of amalgamation with INTUCH, which is expected to be completed in early Q2/25. The newly formed entity (NewCo) will see a significant increase in its share of profit from ADVANC, as NewCo’s shareholding in ADVANC will increase to 40.44% from the previous indirect holding of 19.16%. This will result in an additional share of profit of approximately THB 3,500 million per year. At the same time, cash flow will increase by approximately THB 6,000 million per year, supporting the Group’s future business expansion. In 2025, the Company expects revenue to grow by 20-25%, driven by the commercial operation of an additional 1,500 MW, including the second unit of the HKP with an installed capacity of 770 MW, which commenced commercial operation as scheduled in January, along with seven domestic solar farms and solar farms with battery energy storage systems, with a combined installed capacity of 597 MW, and an additional 100 MW of solar rooftop projects under GULF1.
For the gas business, the Group plans to expand LNG imports to 70 cargos, equivalent to approximately 4–5 million tonnes, to support power generation at the GSRC, GPD, and HKP power plants. This expansion is expected to drive revenue growth through shipper fees, further strengthening the Company’s gas business.
Regarding the infrastructure and utilities business, the projects in the pipeline are still on track. The Bang Yai–Kanchanaburi (M81) motorway is set to commence operations in 2025, while the Bang Pa-In–Nakhon Ratchasima (M6) motorway is expected to be operational by 2026. Meanwhile, the Map Ta Phut industrial port development phase 3 project has completed the land reclamation and plans to start LNG terminal construction in mid-2025. Additionally, the Laem Chabang port phase 3 project is expected to receive land handover from the Port Authority of Thailand for construction of the port by the end of 2025.
In addition, the data center business plans to gradually launch its first phase with a capacity of 25 MW in April this year. The Company aims to scale up its capacity to 100-200 MW over the next three years to meet the growing demand for data storage and data processing in Thailand. Meanwhile, the cloud business, in collaboration with Google to provide Google Distributed Cloud air-gapped services, is scheduled to commence operations by mid-2025 with aims to address the need for secure and efficient data processing and digital infrastructure. Looking ahead, the Company is exploring opportunities to expand its business collaborations to other services, including the development of AI solutions and strengthening cybersecurity capabilities. These efforts are intended to enhance competitive advantages and support the growth of the digital economy.
Additionally, the Board of Directors has resolved to approve an interim dividend payment for the Company’s performance during the period from January 1, 2024 to September 30, 2024, at a rate of THB 1.01/share or equivalent to the dividend payout ratio of 83%. The date to determine the names of the shareholders who would be entitled to the dividend (Record date) is on February 20, 2025, with the dividend payment date on March 6, 2025.”
