B.Grimm Power Plc (BGRIM) reported robust normalized net profit for the first half of this year and outlined plans to enhance investment partnerships and grow its renewable energy portfolio.
President Harald Link indicated that the normalized net profit attributable to the parent company rose by 2.3% year-on-year for the period, reaching 1.09 billion baht.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) increased by 8%, totaling 7.55 billion baht. These strong results were driven by a 10.4% rise in electricity sales volume, which amounted to 7.57 billion gigawatt-hours.
Sales to the Electricity Generating Authority of Thailand (Egat) grew by 14.9%, thanks to the commercial operation of three small power producer plants that began operating in the first and fourth quarters of 2023, contributing a total of 420 megawatts of installed capacity.
Sales of electricity to industrial customers in Vietnam increased by 8.2%, while steam sales rose by 16.4%, propelled by production capacity expansions among existing clients and growing demand.
In the second quarter, BGRIM reported a normalized net profit of 579 million baht attributable to the parent company, reflecting a 20.9% increase from the previous quarter. This growth was attributed to higher sales to Egat, lower natural gas prices, and increased profit shares from investments in associates and joint ventures, particularly the enhanced performance of three small power plants operated by Univentures BGP Co.
However, performance compared to the same period last year showed a decline due to rising financial costs and higher income tax expenses following the expiration of tax privileges for the three power plants. The net profit attributable to the parent company, including unrealized foreign exchange losses and non-operating items, stood at 229 million baht.
During the second quarter of this year, BGRIM connected an additional 5.2MW of capacity from new industrial users in Thailand, particularly in the food and beverage and automotive parts industries. This brought the total connected capacity for the first half of 2024 to 11.2MW.
To enhance long-term production capacity, BGP Holding (US), an indirect subsidiary of BGRIM, acquired the Malacha hydroelectric power project in northern California during the second quarter, boasting an installed capacity of 30MW.
Moreover, the company plans further expansion by acquiring and developing renewable energy power plants in California and other U.S. states. BGRIM currently has more than 1GW of projects under construction and development.
In the latter half of 2024, the company is set to launch three renewable energy power plant projects: the U-Tapao Solar Power Plant Phase 1, the GIFU Solar Power Plant Project in Japan, and the KOPOS Onshore Wind Power Plant Project in South Korea.
Mr. Link emphasized that BGRIM’s long-term goal is to achieve net-zero carbon emissions by 2050. The company aims to increase its production capacity to 10,000MW by 2030, with over 50% of this capacity sourced from renewable energy.
The board of directors has also approved an interim dividend payment of 0.18 baht per share based on the first-half operating results. The ex-dividend date is set for August 26, 2024, and the payment will be made on September 6, 2024.
