Message from The CEO
The year 2021 is another challenging year as the Company had been experiencing the impacts of the prolonged COVID-19 pandemic continuing from the previous year. However, by implementing the Business Continuity Plan established since 2019, the Company can secure its continuity of operations, which resulted in a strong and constant growth of the utilities and power businesses amid the COVID-19 pandemic. This Business Continuity Plan includes Bubble & Seal measures by using a Supervisory Regulate and Data Acquisition (SCADA) system to control and monitor water production via a central control center.
For utility business overview in 2021, the total water sales and management volume of the Company increased by 18% to 135 million cubic meters. This was mainly due to the growing water demand for water from both new and existing consumers at domestic and international level. In terms of Value-added water products, last year the Company began commercializing the Demineralized Water Project Phase 2 with Global Power Synergy Public Company Limited and signed an additional water purchase agreement of Premium Clarified water with Gulf Energy Development Public Company Limited. Additionally, the Company established a joint venture company to supply demineralized water and other sorts of water products in the Asia Industrial Estate (Map Ta Phut), expanding its utilities business outside of the WHA Group’s industrial estates. The Company is committed to developing and expanding alternative raw water sources, such as acquiring additional raw water sources that in the last year, the Company was developing and procuring alternative raw water sources for 10 million cubic meters, expanding water storage to accommodate natural water, expanding Reclaimed water production capacity, or treating waste water for reuse, all of which reduce reliance on the natural raw water sources and mitigate the impact of drought problems. Moreover, the Company can increase the value of treated water by processing it for distribution as Demineralized water and Premium Clarified water.
For the power business in 2021, the revenue and normalized share of profit and dividend increased by 16%. The solar power business continuously grew. In 2021 revenue from solar electricity sales and solar panel installation services (EPC service) increased by 196 million baht. At the end of 2021, the Company had a contractual capacity of Solar Power Purchase agreement of 92 MW in total, in which 57 MW has been in commercial operation. The normalized share of profit from investments in power business was at a similar level to the previous year. Despite the impact of unplanned maintenance of the GHECO-One power plant, the Company was offset by the strong performance of the SPP Business.
The Company places great importance on the development of technologies and innovations that can be applied to its business operations, such as Peer-to-Peer energy trading, which is a part of the Energy Regulatory Commission’s ERC Sandbox program. Last year, the Company began testing the power sales and purchase system with clients in the said project. Additionally, the Company has developed a Unified Operation Center (UOC), which helps control and operate utilities and solar power businesses through a central control center.
For the operating results in this year, the Company recorded a total revenue and normalized share of profit of 3,017 million baht, net profit of 736 million baht and normalized net income of 866 million baht. Total assets as of 31 December 2021 valued 25,839 million baht and net interest-bearing debt-to-equity ratio was 0.90 times.
The above success will not happen if there is no cooperation from all sectors, including shareholders, business partners, employees, and all other parties involved. On behalf of the Management of WHA Utilities and Power Public Company Limited, I would like to express my gratitude to all parties for their trust and support, especially during this challenging time. I strongly believe that these will be the cornerstones of future growth. WHAUP employees and I will continue to work together to drive the Company forward and set a good standard for the Thai industry, as well as create value for stakeholders in all aspects.