GULF’s 2Q Profit Jumps to ฿1.88Bn as Core Profit Nearly Reaches ฿1Bn Level!
GULF’s 2Q Profit Jumps to ฿1.88Bn as Core Profit Nearly Reaches ฿1Bn Level!
GULF’s 2Q Profit Jumps to ฿1.88Bn as Core Profit Nearly Reaches ฿1Bn Level!
11 ส.ค. 2563

Gulf Energy Development Public Company Limited (GULF) has reported its 2Q20 consolidated financial statement through the Stock Exchange of Thailand as follows;
 
GULF reported a net profit of 1,880 million baht in 2Q20, increased 17.31% compared to a net profit of 1,603 million baht from the same period of last year, while core profit for the quarter was recorded at 989 million baht.
 
Revenue from sales and management fee in 2Q20 increased by 8.8% YoY from THB 7,144 million to THB 7,773 million from the full quarter revenue recognition of 12 SPPs under GMP group compared to 11 SPPs in 2Q19. The 12 projects achieved 14.1% higher electricity sales to EGAT compared to the same period last year where EGAT’s modification of 500kV transmission system in Rayong province took place for 37 days and resulted in lower offtake from EGAT from 6 SPPs in the province.
Additionally, the industrial customer base grew both from existing customers who expanded their businesses and new customers despite lower volume of electricity sold to industrial customers due to COVID-19 outbreak. Nonetheless, the electricity demand has increasingly picked up since June 2020 onwards.
 
Moreover, there were full quarter revenue recognitions from GTN2 Solar Power Project in Vietnam and GCG Biomass Power Project in 2Q20, compared to 2Q19 where GTN2 commenced commercial operation on April 19, 2019. The growth in revenue has already included the effect of planned maintenance shutdown (B-inspection) of GTS1 power project for 18 days.
 
Core profit in 2Q20 increased by 0.3% YoY from THB 985 million to THB 989 million from:
1) Realized higher profit from 12 SPPs under GMP, GTN1 &amp; GTN2 solar power projects in Vietnam, and GCG biomass power project.
2) Fuel cost decreased from average price of natural gas from 274.55 THB/mmbtu in 2Q19 to 261.41 THB/mmbtu in 2Q20 while Ft rate remained the same at (0.1160) THB/kilowatt-hour.
3) Share of profit from GJP excluding foreign exchange gain (loss) remained at the same level from the same period of last year. The higher Availability Payment which 2 IPPs (GNS and GUT) received in 2Q20, as well as 7 SPPs’ electricity sales volume to EGAT which increased by 3.8% YoY, helped offset the softened volume of electricity and chilled water sold to industrial customers which was affected by COVID-19.
4) Dividends from SPCG which increased by THB 23 million from THB 58 million in 2Q19 to THB 81 million in 2Q20.
 
Gross profit in 2Q20 was THB 1,814 million, an increase of 4.8% YoY. The increase was caused primarily by the higher revenue from sales caused by commercial operation commencement of the 1 additional power project under GMP, commercial operation commencement of GCG biomass power project in March 2020, a full quarter revenue recognition of GTN2 solar power project which COD in April 2019, and a profit of GTN1 solar power project which was realized to GULF’s consolidated financial statements after the company increased its shareholding in the project in November 2019. Moreover, the lower average natural gas price from 274.55 THB/mmbtu in 2Q19 to 261.41 THB/mmbtu in 2Q20 while Ft rate stayed at the same level from last year at (0.1160) THB/kilowatt-hour also contributed to a higher gross profit.
Nevertheless, gross profit margin from sales slightly softened from 24.1% to 23.1%, as a result of lower steam sales revenue to industrial customers.
Gross profit from services increased by 25.8% YoY from higher revenue from management fee and resulted in improved gross profit margin from services from 39.1% to 42.3%.
 
GULF was able to recognize a gain on exchange rate occurred from the appreciation of the Thai Baht by 1.76 THB/USD in 2Q20, compared to the gain on exchange rate from the appreciation of Thai Baht by 1.06 THB/USD in 2Q19, and compared to a loss on exchange rate occurred from the depreciation of the Thai Baht by 2.50 THB/USD in 1Q20. The recording of such profit is an accounting transaction mainly resulted from the translation of USD-denominated loans, which has no impact on the cash flow and performance of the Group at all.
 
Cost of sales in 2Q20 was THB 5,907 million, an increase of 10.1% YoY, which increased from fuel cost, operations and maintenance cost, depreciation, and other costs, due to a higher number of power plants in operation when compared to the same period of last year, resulting in an increased cost of sales in accordance with electricity sales growth, despite a decrease in average price of natural gas from 274.55 THB/mmbtu in 2Q19 to 261.41 THB/mmbtu in 2Q20.
However, administrative expenses were THB 380 million in 2Q20, a decrease of 7.7% YoY mainly due to one-time expenses, such as business acquisition, which incurred in 2Q19.
 