Energy/GULF

Editorial staff

GULF’s core profit records 4.15 billion baht with a focus on investments in renewable energy, paving the way for the future of data center, cloud, and AI businesses.

SET-listed Gulf Energy Development Plc (GULF) reported the financial results for Q1/24 with a total revenue of 32.28 billion, a 20% increase from 26.99 billion baht in Q1/23 and a core profit of 4.15 billion baht. Core profit increased by 13% year-on-year from 3.66 billion baht in the same period of the previous year.

The growth was primarily driven by the improved performance of power generation business with the commercial operation of units 1 and 2 (1,325 MW) of IPD Group’s 2,650-MW Gulf Pluak Daeng (GPD) IPP power project in March and October 2023.

In addition, 1,540-MW Hin Kong Power (HKP) IPP power project commenced commercial operation of unit 1 (installed capacity of 770 MW) in early March. Therefore, GULF realized a full quarter contribution of GPD units 1 and 2 and started to recognize a contribution of HKP unit 1 in this quarter.

Furthermore, GULF recognized a share of core profit from the GJP Group of 542 million baht, which represents a 27% year-on-year increase.

For the infrastructure business, GULF recorded revenue from a service concession arrangement for the land reclamation work on the MTP3 industrial port development project. Revenue was totaled 1.13 billion in Q1/24.

This marks a 68% year-on-year increase, reflecting the progress of project development during the quarter. The land reclamation work is scheduled for completion in 2024, of which the company plans to further develop the LNG terminal project afterwards.

In Q1/24, GULF recognized a share of core profit from the investment in INTUCH of 1.57 billion baht in Q1/24. An increase of 329 million baht or 26% YoY from 1.24 billion baht in Q1/23. The strong performance of AIS was from an increase in the revenue due to subscriber base expansion as AIS focused on package restructuring.

As of March 31, 2024, GULF reported total assets of 472.86 billion baht, total liabilities of 324.56 billion baht and shareholders’ equity of 148.30 billion baht. A net interest-bearing debt to equity ratio of 1.70 times, slightly increased from 1.69 times as of December 31, 2023.

Yupapin Wangviwat

Yupapin Wangviwat, deputy chief executive officer and chief financial officer to GULF, said the company maintains its 2024 total revenue growth at approximately 25-30%, driven by projects that are scheduled for commercial operation this year.

Ms Yupapin added GULF is currently prioritizing the expansion of its renewable energy portfolio, including solar, wind, hydroelectric and waste-to-energy power projects both domestically and overseas. Renewal energy is part of its strategic roadmap towards achieving net zero carbon emissions by 2050.

GULF solar wind

Currently, GULF has a committed installed capacity from renewable energy of approximately 8,500 MW in 5 countries. The company plans to expand additional capacity of at least 3,000 MW through various renewable energy projects in order to achieve the aforementioned target.

By investing in renewable energy business, GULF not only fosters environmental sustainability but also meets the growing demand for clean energy across various industries.

She said furthermore, GULF is currently developing its data center business. Presently, there's a surge in demand for data centers across public and private sectors, particularly among enterprises undergoing digital transformation.

Cloud-based data processing and storage, along with Artificial Intelligence (AI) utilization, are becoming pivotal for local organizations and hyperscalers venturing into the Thai market, addressing the escalating need for data storage and management.

GULF's data center underscores its commitment to sustainability, with a dedicated focus on leveraging clean energy sources, with plans for 2 phases. Each approximately 24-25 MW totaling around 50 MW. Phase 1 of the data center is currently under construction, slated for completion and operational around March 2025. By integrating renewable energy into its digital infrastructure, GULF enhances its competitive edge in the rapidly evolving digital realm.