B.Grimm lifts Q1 core profit up 54%, renewable energy projects delayed

Thai company B.Grimm Power PCL (SET:BGRIM) posted a normalised net profit (NNP) of THB 1.16 billion (USD 36.2m/EUR 33.3m), up 54% year-on-year, for the first quarter of 2020.

In its latest financial report, B.Grimm said the NNP grew as a result of new capacity in the portfolio, the acquisition of shares in Angthong Power Co, a gas-fired power plant, new power purchase agreements (PPAs) in the industrial users segment and improved efficiency of a plant run by subsidiary Amata B Grimm Power 5 Ltd.

These factors boosted earnings before interest, taxes, depreciation and amortisation (EBITDA) by 35.8% to THB 3.28 billion and lifted revenues by 9.4% to THB 11.22 billion.

Once unrealised foreign exchange losses and other non-recurring expenses are taken into account, net profit sunk by 81% to THB 159 million.

The power company does not expect the COVID-19 pandemic to cause major disruptions on its business. It said that most of its revenues come from long-term PPAs with state-owned enterprises, while those in the industrial users segment remained stable in year-on-year terms thanks to a diversified portfolio and new customers.

The global health crisis did leave an impact on supply chains, which in turn will affect commissioning of B.Grimm’s renewable energy projects by three to six months. As a result, scheduled commercial operation dates for 16 MW of wind farms and the 13-MW LK solar floating scheme have been pushed to the first quarter of 2021.

Commissioning of a 45-MW solar floating project built for Electricity Generating Authority of Thailand (EGAT) is also rescheduled.

The 39-MW Ray Power solar project in Cambodia will go online in October 2020 as planned.

(THB 100 = USD 3.12/EUR 2.87)

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