CKPower posts 2.68 billion in Q1/2023

Editorial Staff

CKPower posts 2.68 billion in Q1/2023 revenue with dividend payment of 0.085 baht per share scheduled for May 22

Mr. Thanawat Trivisvavet, managing director, CK Power Public Company Limited or CKPower (SET: CKP), one of the region’s largest producers of electricity from renewables with commitment to achieve the lowest carbon footprint, revealed the operating results for Q1/2023, in which CKPower and its subsidiaries reported Baht 2,686 million of revenue, representing a 143 million baht or 5.6% year-on-year increase compared to the 2.54 billion baht of the same period last year.

Positive factors for the Q1 revenue were a 161 million baht or 9.8% YoY boost in the revenue from sales of electricity and steam of Bangpa-in cogeneration power plant due to a surge in global gas prices, coupled with the raising of retail Ft rate by the government. Conversely, the revenue from sales of electricity of Nam Ngum 2 Hydroelectric Power Plant (NN2) showed a slight decline compared to the previous year due to a lower water level in the reservoir at the beginning of the year compared to the previous year and the lower inflow volume in Q1. In response, CKPower declared its electricity production with conservative approach to ensure an adequate water supply for the production in the first half of 2023, which coincides with the dry season.

Mr. Thanawat Trivisvavet, managing director, CKP

In Q1/2023, CKPower reported 2.32 billion in operating expenses, reflecting a 121 million baht or 5.5% increase. This can be attributed to a 86 million baht rise in BIC's fuel costs and 37 million baht increased in the operation and maintenance expenses related to a major overhaul of NN2. In addition, CKPower recognized the share of loss from investment in Xayaburi Hydroelectric Power Plant (XPCL), resulting from a decrease in the sales volume of electricity due to lower water flow volume as well as from the rise in XPCL’s financial costs following global interest trends. As a consequence, CKPower's share of loss from investments in associates increased by 152 million baht compared to the same period last year, leading to a net loss attributable to equity holders of 104 million baht in Q1/2023.

CKPower’s financial position remains robust, with its total liabilities declining by 3.0% from the end of 2022, primarily due to the redemption of NN2’s debentures in March 2023. At the end of March, TRIS Rating maintained the A/Stable credit rating for CKPower and the A-/Stable credit rating for all of its debentures, further emphasizing the company's solid financial position.

Mr. Thanawat acknowledged the various operational challenges faced by CKPower in the first quarter of the year, particularly the rising fuel costs and major maintenance costs. However, he also shared positive news for the company's shareholders. The 2023 Annual General Meeting of Shareholders, held on April 25, 2023, approved a dividend payout of Baht 0.085 per share, amounting to approximately Baht 691 million. Shareholders listed on the record date of May 8, 2023, will be eligible for the dividends, which are scheduled for payment on May 22, 2023.