CKPower's H1/2023 performance affected by El Niño;

Editorial Staff

CKPower's H1/2023 performance affected by El Niño;
Q3 recovery anticipated due to rainy season factor

CKPower has devised comprehensive drought response strategies while the company reaffirms its commitment to elevating renewables-based electricity production to 93%.

Mr. Thanawat Trivisvavet, managing director, CK Power Plc or CKPower (SET: CKP), one of the region's largest producers of renewables-based electricity with the lowest carbon footprint, said the company faced a downturn in its operating results for Q2/2023 and H1/2023. The primary reason was the profound influence of the El Niño phenomenon in the first half of 2023.

This climatic event introduced significant volatility, resulting in widespread drought globally, notably in Southeast Asia. Such conditions notably affected CKPower's assets, causing a noticeable decline in water levels in the reservoir of the Nam Ngum 2 Hydroelectric Power Plant (NN2). Similarly, the water inflow volume through the Xayaburi Hydroelectric Power Plant (XPCL) also saw a comparative dip from the previous year's numbers. In response to these challenges, CKPower is adopting a prudent approach when declaring availability and is sharpening its focus on expense management. Encouragingly, the company anticipates a bounce back in its Q3/2023 operating results, with the improvement expected to stem from the rainy season factor.

CKPower recorded a total revenue of 2.56 billion baht for Q2/2023, a 93 million baht or 3.5% decrease against 2.65 billion baht of the previous year, and a six-month revenue of 5.21 billion baht, a 49 million baht or 0.9% year-over-year surge, primarily due to an increase in project management income and other related incomes, while the net profit attributable to shareholders in Q2/2023 and H1/2023 fell compared to the previous year.

In addition, CKPower posted 1.8 billion baht in Q2/2023profit, a 99.8% year-over-year drop compared to the 864 million baht of 2022, and recognized a total loss of 103 million baht in the first six months of the year, a year-over-year decline compared to the
net profit of 903 million baht in the previous year, chiefly attributable to a reduced share of profit from its investment in XPCL resulting from a shrink in the volume of electricity sold in accordance with the lower water volume as well as to a swell in financial expenses, influenced by the global trend of interest rates.