Bangkok, 12 May 2017 - WHA Utilities and Power PLC. (WHAUP) announces a 340% profit increase in Q1/2017, following the full quarter operations of its integrated utilities and power businesses after being transferred from WHA Group. In addition, four additional power plants to achieve their COD in 2017 will further enhance its business growth and underline its high growth potential and stable stock.
Mr. Wisate Chungwatana, Chief Executive Officer, WHA Utilities and Power PLC. (WHAUP) said, “WHAUP finished 1Q2017 Net Profit with Baht 272.5 million, a 340.3% or Baht 210.6 million increase from the same period last year. Revenue from Sales and Services (Utilities Business) was recorded at Baht 388.0 million, while Share of Profit from Investment (Power Business) was recorded at Baht 250.8 million.
The improvement resulted from various driving factors – increasing demand for utilities and power from existing and new customers and the increase in overall water tariff; the acquisition of Utilities and Power Assets from WHA-Hemaraj Group during May-June 2016 in order to consolidate WHAUP as the group’s flagship for Utilities and Power Business Hub; and the commercial operation of one of the power plants the company jointly invested in last November.
For power business, four additional power plants will start its COD in May, July, September and November this year respectively; in addition to the SPP plant in Hemaraj Chonburi Industrial Estate that was COD in November 2016. WHAUP is a strategic partner or co-developer of power business. We partner with a number of key Thai and international power developers and recognize Power Business performance in proportion of our equity stake (%).
Currently, WHAUP has 7 power projects under Construction and Development totaling 192 Equity MW, of which 4 projects, totaling 130 Equity MW, are scheduled to achieve COD within this year. Another 3 projects are scheduled to achieve COD during 2018-2019. Completed revenue recognition of 542 Equity MW is expected in 2019, increasing from 350 Equity MW at the end of 2016.
Utilities business has been sustain growing with an increasing revenue trend corresponding to the continuously demand from industrial customers. Besides, WHAUP has the exclusive rights to provide Raw Water, Industrial Water and Wastewater Treatment Service in Industrial Estates and Industrial Lands of WHA Group.
“We expect the selling volume to grow from new customers especially from Power and Petrochemical businesses; both are the utilities intensive industries. In addition, there will be more demands from customers in Hemaraj Chonburi Industrial Estate 2 and Hemaraj Eastern Seaboard Industrial Estate 2 that will begin their operations soon.” Mr. Wisate said.
For investment plans in 2017, we will continue our investment in seven power plant projects. However, the investment will start to decrease in the following year after the power plants start their commercial operations, hence, the company will start recognize return from the investment.
“WHAUP was successful with its initial public offering in April 2017, with 3,281.25 million Baht shares capital increase. This IPO enhanced our capital base and strengthened our balance sheet. Subsequent to the IPO, the Company repaid Baht 2,500 million loan to a financial institution to reduce our financing cost and increase our financial strength. As a result, our Net Interest-Bearing Debt-to-Equity ratio will be reduced to be approximately 0.75 times.” Mr. Wisate concluded.
WHAUP’s strength is its high growth potential and earning stability due to its business model that covers both utilities and power businesses. Moreover, its broad customer base of over 700 local and international companies and its long experience in utilities that can be expanded to new businesses both in terms of products and locations