Stock/energy

Editorial team

GPSC announced the decrease in profit of Q3/2022 due to the rising fuel prices

GPSC reports its performance of Q3/2022, recognizing the increased revenue by 22% compared to Q2/2022 due to positive factors from an increase of Ft charge, higher sales volume of electricity and steam, and higher revenue recognized from Xayaburi hydro power plant.

However, net profit declined by 52% due to the rising fuel prices.

Mr. Worawat Pitayasiri, president and chief executive officer of Global Power Synergy Public Company Limited

Mr. Worawat Pitayasiri, president and chief executive officer of Global Power Synergy Public Company Limited or GPSC, the innovative power flagship of PTT Group, said that the company’s total revenue of Q3/2022 was 33.86 billion baht, increasing by 22% compared to Q2/2022 (QoQ) due to the adjustment of Ft charge in September from 24.77 satang per unit to 94.43 satang per unit.

The amount of electricity sold to the Electricity Generating Authority of Thailand (EGAT) and steam sold to industrial customers increased; and the company also recognized higher share of profit from Xayaburi Hydro power plant, thanks to the higher water level.

Net profit fell by 52% due to the continuous rise of natural gas and coal prices, resulting in lower margin in selling electricity to industrial, although there was an increase of Ft charge in September.

Nonetheless, the company’s total electricity and steam sales volume still grew strongly.

In terms of synergy plan, the company recognized the synergy net value after tax at 595 million baht in this quarter. This is the consequence of the successful joint operations aiming to enhance the efficiency of the production management and the use of steam network, leading to the expansion of customer base, lower cost of commercial management, and desired debenture management as planned.

Considering the economic overview of Thailand in the last quarter of this year, in spite of the pressure from high inflation and the rising fuel prices which might affect electricity price, the overall economy is expected to improve due to the recovery situation from the COVID-19 pandemic.

GPSC has set up business strategies to focus on power generation based on renewable energy to cope with energy price situation as well as to be in line with the government's promotion and grow sustainably.

The company is determined to increase the proportion of renewable energy by more than 50% by 2030 along with the enhancement of the main power plants equipped with Carbon Capture Technology and Storage (CCUS) & hydrogen technology. This will significantly encourage GPSC to achieve the targets of carbon neutrality in 2050 and net zero emissions in 2060.
All of the mentioned strategies and targets are intended to deal with the issues of climate change and the company is ready to become the leading power company for sustainable energy innovations in Southeast Asia.