Covid-19 and Lockdown Impact Pressure BEM’s 3Q21 Earnings to Drop 86%

Bangkok Expressway and Metro Public Company Limited (BEM) has announced its 3Q21 consolidated financial statement through the Stock Exchange of Thailand as follows;

BEM reported a net profit of 108 million baht in 3Q21, decreased 86.81% from a net profit of 821 million baht in 3Q20. The decrease was mainly due to the effect of COVID-19 epidemic which led to a decrease in traffic and ridership volume resulting in the revenue decline.

The company stated that the coronavirus disease 2019 pandemic has become a more severe situation in July 2021. The government announced lockdown and curfew measures in Bangkok and the perimeter started on July 12, 2021 and requested government and private sectors for 100% work from home resulted to the negative impact on traveling and led to a decrease in the number of the expressway users and the Metro passengers, pushing the monthly average traffic and ridership volume to the lowest number in August 2021.

The revenue from Expressway business amounted of 1,278 million baht representing a decrease from the third quarter of the year 2020 by 869 million baht or 40.5 percent mainly from the effect of COVID-19 pandemic which was more intense since June 2021. Therefore, the government announced lockdown measures in Bangkok and the perimeter started in the beginning of July 2021, resulting in a decrease in the number of the expressway users, especially in August 2021 with the lowest traffic volume at 593,900 trips per day, representing a decrease by 47.5 percent YOY. However, the government has relaxed lockdown measures, the traffic volume significantly increased to 783,900 trips per day in September 2021 representing an increase from August by 32.0 percent, and the traffic volume in October 2021 continued to rise at 898,700 trips per day.

Cost of service for operation of Expressway business consisted of costs of toll and amortization on rights to operate completed expressway sectors. For the third quarter of the year 2021, the cost was at 473 million baht, representing a decrease from the same quarter of the previous year by 174 million baht or 26.9 percent, mainly from a decrease in amortization on rights to operate completed expressway sectors which related to the traffic volume and the cost management in line with the situation.