CKP Reports a Net Loss of ฿339M in 1Q20 after Recording a Lower Revenue from Sales

CK Power Public Company Limited (CKP) has reported its 1Q20 consolidated financial statement through the Stock Exchange of Thailand as follows;

CKP reported a net loss of 339 million baht in 1Q20, primarily due to the decline in revenue from Sales of Electricity of NN2 as a result of low water inflow to the reservoir and the share of loss from Investment in XPCL, an associated company, from lower-than-average water flow.

Revenue from Sales of Electricity of NN2 declined in Q1 2020 compared to the same period last year, driven with the decrease in electricity sales volume due to lower-than-average water inflow to the reservoir. As a result of low water inflow, NN2 adopted a conservative water management approach to ensure that the remaining water in the reservoir would be sufficient to produce electricity as planned for the entire year.

Moreover, NN2 declared 2020 as Drought Year according to the Power Purchase Agreement (PPA) in order to waive the minimum average production hour requirement under the PPA to avoid any potential fine charges that might occur and allow NN2 to efficiently manage its production during the drought period.