A Full-Year Recognition from GLOW Drives GPSC’s 2020 Profit by 85%, Offering Bt1 Dividend

Global Power Synergy Public Company Limited (GPSC) has reported its yearly consolidated financial statement of 2020 through the Stock Exchange of Thailand as follows;

GPSC reported a net profit of 7,508 million baht in 2020, increased 85% from a net profit of 4,060 million baht in 2019. The increase was mainly from full year recognition of results from GLOW in 2020, while in 2019, the recognition was from revenue incurred during 19 March –31 December 2019.

Moreover, lower average natural gas and coal prices, and lower financing costs from capital restructuring and debt restructuring also contributed to GPSC’s gain as well.

Besides, the company’s non-operating income increased from dividend received and shares of profit of associates and joint ventures. The Company also recognized synergy value from the merger of GLOW amounting 701 million baht which mainly from electricity and steam network integration.

 

Gross profit of IPP business in 2020 was 5,358 million baht, decreased by 411 million baht or 7% from previous year mainly due to outage amortization of GHECO-One has been reclassified to maintenance cost resulting in increased maintenance cost reported in Q1/2020 onwards.

 

Gross profit of SPP business in 2020 was 15,362 million baht, increased by 2,852 million baht or 23% from previous year mainly from full-year recognition of results from GLOW in 2020, while in 2019, the recognition was from the period of 19 March –31 December 2019.

Additionally, electricity and steam sales volume of SPP also increased and average prices of natural gas and coal also dropped. In 2019, average natural gas price was 281 THB/MMBTU and average coal price was 89.1 USD/Ton JPU. While in 2020, average natural gas price was 252 THB/MMBTU and average coal price was at 73.4 USD/Ton JPU. Such drops in average natural gas and coal price contributed to higher margin from electricity sold to industrial customers despite adjustment of Ft charge in September 2020 down to -12.43 Satang/unit from -11.60 Satang/unit in 2019 as well as an unplanned outage of Glow Energy phase 5 plant during 4 June –18 October and 6 December 2020 to present.

 

Gross profit of VSPP and other businesses in 2020 was 610 million baht, increased by 227 million baht from 2019 mainly from recognition of revenue from Global Renewable Power Co., Ltd. (GRP) after an acquisition completion on 26 March 2020 together with the increase in revenue of EPC service and solar cells implementation from Combine Heat and Power Producing Company Limited (CHPP).

 

In addition, the Board of Directors of GPSC approved a dividend payment of ฿1.00/share to be paid on April 21, 2021. The ex-dividend date will be on March 3, 2021.