WHAUP Posts 200% Rise in 1Q Net Profit from Outperforming Water Business

WHA Utilities and Power Public Company Limited (WHAUP) announced its Q1 2021 results, with total revenue and normalized share of profits of THB 782 million, net income of THB 131 million and normalized net income of THB 189 million. As the utilities and solar energy businesses reported high revenues, the company also signaled M&A opportunities that could strengthen its businesses and make it a leader in the industry in the region.

 

WHAUP reported its Q1 2021 performance, with a total revenue and normalized share of profits of THB 782 million, rising 18% compared to the same period last year. Contributing to the better performance was the increase in water sales and distribution both in Thailand and Vietnam, and in revenue from commercial operations of solar projects.  This drove the company’s net income to THB 131 million, rising 200% year-on-year. However, normalized net income of THB 189 million, excluding impact from foreign exchange,  declined 15% year-on-year mainly because Gheco-One power plant performed scheduled maintenance in the first quarter of this year.  

 

Dr. Niphon Bundechanan, Chief Executive Officer of WHA Utilities and Power Plc. (WHAUP), said that in Q1 2021, the utilities business showed outstanding growth as the company increased water sales and management volume in Thailand and abroad, totaling 33 million cubic meters, up 11% compared to the same period last year, and 12% from the previous quarter, due to higher water demand. Moreover, the company’s operation was not affected by the droughts and COVID-19 lockdown measures, prompting normal water consumption in the industrial sector. Water demand from new customers also drove up sales since Q4 2020.  

 

In addition, WHAUP continues to develop value-added products, comprising Demineralized water, Premium Clarified water and Wastewater reclamation. Located in WHA Eastern Industrial Estate (Map Ta Phut), the Reclamation Plant, the country’s largest of its kind, started operations last January with a capacity of 25,000 cubic meters per day. It produces and distributes demineralized water and premium clarified water to customers. It also serves as a pilot project for using sustainable innovations in terms of cost control for water supply management and reducing reliance on other raw water resources. In Q1 2021, it enabled the company to produce a value added product of 1 million cubic meter, representing a growth rate of 203% compared to the same period last year.

 

For Power business, the CEO of WHAUP added that the solar business experienced continuing growth from new projects. As of Q1 2021, the Company had a total contractual capacity of Solar projects 61 MW and the total operating capacity according to shareholding equity of 594 MW. WHAUP targets to expand its solar power business to 300 MW within 2023. In the first quarter, the company earned revenue of THB 122 million from the solar power business, growing 1,668% year-on-year.

 

Presently, the company is seeking approval for Peer-to-Peer Energy Trading within WHA industrial estates, in line with the preparation and installation of an energy storage system at the company’s water filtration plant. This not only emphasizes the company’s experience and expertise, but also reflects its readiness to become the leader in the clean energy business, with ambition to continue developing new services for its customers.

 

Dr. Niphon Bundechanan also noted that the performance of conventional power business was impacted by Gheco-One Power Plant’s 37-day planned maintenance in January and February, generating lower revenue from EGAT. This resulted in WHAUP receiving a share of loss from Gheco-One Power Plant in the quarter. After the plant resumes normal operation, this Availability Payment revenue would improve and lead to a recovery of share of profits from Gheco-One in remaining quarters.

 

The 8 SPP power plants and the waste-to-energy Chonburi Clean Energy (CCE) power plant continued to see strong performance as share of profits from SPPs and CCE grew 35% and 8% year-on-year.

 

The CEO of WHAUP concluded that the company will continue to focus on building business growth both in Thailand and abroad especially in Vietnam, along with the development of renewable energy, innovative utilities solutions while seeking M&A opportunities. All these initiatives will support the company’s strength to become the leading utilities and power service provider in the region.