GULF Records ฿20bln. of Revenue in 2018, Boosting Core Profit to Jump 81%

Gulf Energy Development Public Company Limited (GULF) has reported its consolidated financial statement yearly 2018 through the Stock Exchange of Thailand as follows:

GULF report an outstanding revenue from operations in 2018 of 20,094.5 million baht, an increase of 135.6% YoY primarily due to the significant increase in revenue from sales and services from 4,350.4 million baht in 2017 to 17,181.1 million baht in 2018, an increase of 294.9% YoY from the full-year revenue recognition of SPP power projects under GMP which began commercial operations in 2017 (GVTP, GTS1, GTS2 and GTS3) and the successive commencement of commercial operations of another four SPP power projects in 2018, namely GTS4, GNC, GBL and GBP.

Furthermore, the four power projects which had begun operations in 2017 also had an increase in electricity sales to EGAT and industrial users from the previous year, particularly to industrial users. In 2018, the revenue from electricity sales by GMP to industrial users increased by 293.3% and the revenue from steam sales increased by 449.3%.

 

Core profit in 2018 was 2,826.4 million baht, an increase of 81.3% from the previous year resulting from the significant improvement in performance of the GMP group. In 2018, GULF recognized full-year performance of the four SPP power projects that began commercial operation in 2017, as well as the performance of the other four SPP power projects that began commercial operation during 2018, compared to performance from only four SPP power projects recognized in 2017.

The profit margin of the GMP group in 2018 was also higher than the previous year due to the significantly higher volume of electricity and steam sold to industrial users by the power projects, resulting in higher efficiency of the power plant operations and lower heat rate. Nonetheless, share of profit from GJP decreased 5.0% YoY for the aforementioned reasons.

 

However, GULF’s 2018 net profit edged slightly lower to ฿3,028.14 million, decreased by 12.26% when compared to ฿3,451.42 million of profit in 2017. The decline was mainly due to a lower gain in foreign exchange that GULF recorded ฿134,761 million in 2018 while gained ฿994,874 million in 2017, decreased by 86.45% as a result of baht appreciation.