WHA Utilities and Power Public Company Limited (SET: WHAUP) kicks off the Tiger Year with plans to invest THB 10 billion over the next five years, as well as utilizing technology to transform businesses and to become a leading provider of utilities and power in the region. Dr. Niphon Bundechanan, WHAUP Chief Executive Officer, believes the company’s 2022 business outlook for utilities & power will grow constantly, both domestically and internationally. It will also explore for M&A opportunities. The total revenue and normalized share of profit are expected to reach THB 6 billion in 2026, or double 2021’s results, while the EBITDA margin can be maintained at no less than 50%.
Dr. Niphon Bundechanan, Chief Executive Officer of WHA Utilities and Power Plc., revealed the company’s business directions and five-year investment plan (2022-2026) amounting to THB 10 billion. This year, it plans to spend THB 2.7 billion, not including overseas investments under feasibility studies such as green field investments, and merger and acquisition (M&A) deals.
The company expects total revenue and normalized share of profit to reach THB 6 billion in 2026, or double from 2021, while EBITDA margin can be maintained at higher than 50% from the growth of its core businesses – Utilities and Power.
For the Utilities business, WHAUP has set its target for domestic water sales volume and wastewater treatment and management volume at 128 million cubic meters, and targets 25 million cubic meters from the utilities business in Vietnam. This would be driven by increased demand from existing and new customers, and customer base expansion outside WHA Group’s Industrial Estates. Furthermore, the company plans to make vertical integration to expand its utilities business by searching for alternative raw water sources to promote its business stability, to reduce reliance on and to manage cost of the original raw water source. This will be implemented in parallel with wastewater reclamation development projects using the company’s expertise to process Value-added water products such as Demineralized water and Premium clarified water. It will also adopt smart utilities service platforms and innovative solutions to lift operational standards and deliver more efficient and fully integrated services to customers.
In 2021, the company executed a water purchase agreement of Premium clarified water for 1.4 million cubic meters per year with Gulf Energy Development Public Company Limited (GULF). The project will begin commercial operations in the third quarter of this year. WHAUP has also partnered with Asia Industrial Estate Co., Ltd. to set up WHAUP Asia Reclamation Water Co., Ltd. (WHAUP AIE), a joint venture company to produce and distribute utilities services in Asia Industrial Estate (Map Ta Phut). The JV company has signed a water agreement to supply 790,000 cubic meters per year of demineralized water to the first customer “Purac (Thailand) Co., Ltd.,”, which expects to COD in Q4/2022.
In Vietnam, WHAUP expects total sales volume of water and total volume of wastewater treatment and management to grow with WHA Group’s industrial estate expansion plan projects including WHA Industrial Zone – Thanh Hoa which is soon to be completed, and Phase 2 of WHA Industrial Zone Nghe An which will start construction in Q1/2022. Once Phase 1 is completed and ready to serve customers within the industrial zone, the company believes that its readiness and expertise will benefit its overall growth.
For the Power business, the company sets a total capacity target to reach 700 equity MW in 2022, from 642 equity MW in 2021. This will be achieved by expanding its renewable energy portfolio, including solar and waste-to-energy projects. It targets to secure additional solar power purchase agreements to reach an accumulated 150 MW in total, from 92 MW in 2021.
In addition, the company is studying the development of innovative technologies to apply with solar power business, such as a Peer-to-Peer (P2P) energy trading for application among WHA IE’s industrial customers and a Smart Microgrid. Peer-to-Peer energy trading is a co-developing project with leading energy and technology partners, using blockchain technology. It is also a part of the Sandbox program of the Energy Regulatory Commission (ERC), which is currently being tested in preparation for commercial trading, while waiting for the government’s green light. This will be WHAUP’s main growth factor for its renewable energy business portfolio to reach up to 100-200 MW, to help achieve the company’s target of 300 MW by 2023.
WHAUP has also developed the Battery Energy Storage System (BESS), which will be used along with solar power, and offered as an additional service to customers. Additionally, studies on Smart Microgrid in WHA Group’s industrial estates are currently being conducted.
Thanks to its experience in renewable business, an application of innovative technologies and the collaboration with partners who have the expertise, the company expects to further enhance its renewable energy businesses, to bring new opportunities and to create a new business model for the future.
Finally, WHAUP is still committed to seek new investment opportunities including greenfield developments, M&A deals, joint venture agreements, investment expansions outside the WHA Group’s industrial estate in both utilities and power businesses to strengthen and expand the businesses. This will help strengthen the confidence in growing the businesses both in Thailand and abroad, along with developing innovations and solutions for renewable energy and utilities in the long run.
