CK Reports a Decline of 65% in 2020 Earnings, Offering a Dividend of Bt0.20

CH.Karnchang Public Company Limited (CK) has reported its yearly consolidated financial statement of 2020 through the Stock Exchange of Thailand as follows;

CK reported a net profit of 612 million baht in 2020, decreased 65% from a net profit of 1,777 million baht in 2019. The decline in net profit was driven by decreased revenue from construction contracts and reduced share of profit from investments in associated companies.

The company reported revenues from construction contracts of 16,745.77 million baht, representing 90.80% of total revenues, a decrease of 27.20% or 6,257.17 million baht from last year.

The revenue dropped because Jira-Khon Kaen Double-Track Railway Project and Xayaburi Hydropower Project were complete in 2019 and several projects are wrapping up, namely the Project Management, Supply and Installation of the M&E Systems for the MRT Blue Line Extension Project and Bang Pa-In – Nakhon Ratchasima Intercity Motorway Project.

Meanwhile, newly-awarded projects like the Construction of Rama 3-Dao Khanong-Western Outer Ring Road Expressway Project: Contract 4 and the Learning and Research Centre Commemorating Her Royal Highness Princess Chulabhorn’s 60th Birthday Anniversary just recently started.

CK registered cost of construction services amounting to 15,340.52 million baht, a decrease by 5,687.46 million baht or 27.05% from the prior year. Gross profit was 1,405.25 million baht, dropped by 569.71 million baht or 28.85% from last year as a result of decreased revenues from construction contracts, along with lowered gross profit margin at 8.39%, compared to 8.59% in 2019.

 

The company reported a share of profit from investments in associated companies of 856.62 million baht down by 949.62 million baht or 52.57% from last year. The decline mainly came from the fact that in 2019 Bangkok Expressway and Metro Public Company Limited realized gain from revaluation of its investment in TTW Public Company Limited which was reclassified from investment in an associated company to investment in available-for-sale securities.

In addition, the coronavirus pandemic which led to less transportation under the lockdown measure weakened the financial performance of Bangkok Expressway and Metro Public Company Limited in 2020.

As for CK Power Public Company Limited, the declining performance was largely due to the one-time gain on exchange from Xayaburi Power Company Limited, its associated company, in 2019. The normalized profit showed improvement thanks to full-year operation of Xayaburi Hydropower Project even though 2020 water inflow was below average.

 

In addition, the Board of Directors of CK resolved a resolution to pay a dividend payment of ฿0.20/share to be paid on 25 May, 2021. The ex-dividend date is May 10, 2021.