Company News
“WHAUP” Aims to Generate Revenue and Normalized Share of Profits Totaling THB 27 Billion; Injecting THB 18.5 Billion Investment Plan Over the Next 5 Years to Expand Utilities – Power Businesses and Reinforcing Innovative Solutions that Support Sustainability
Bangkok - WHA Utilities and Power Public Company Limited (WHAUP) announced an aggressive plan to drive sustainable business growth through innovative solutions in utilities (water) and renewable energy. The company forecasts its revenue and normalized share of profits THB 27 Billion over the next five years (2023-2027), fueled by an investment plan of THB 18.5 Billion, while maintaining an EBITDA margin of no less than 50%.
Mr. Somkiat Masunthasuwun, Chief Executive Officer of WHA Utilities and Power PLC., stated that the company's successes in 2022 demonstrated its strengths and potential to become a leading provider of utilities and power businesses. The company reported accumulated total water supply and wastewater management volume totaling 145 million m3, and a cumulative signed Power Purchase Agreements (PPAs) with the installed equity power 683 MW. WHAUP has signed a contract with Ford Motor Company (Thailand) at WHA Eastern Seaboard Industrial Estate 1 for the installation of the largest solar car park in Thailand, featuring a total solar PV rooftop installation area of 32,000 sq.m. for a generating capacity of 7.7 MW.
Additionally, WHAUP received the "Best Innovative Company Award" from the Stock Exchange of Thailand for its Peer-to-Peer Energy Trading platform, which is a highly valued smart platform that WHAUP used for strengthening solar power trading with customers within the WHA Industrial Estates. The company was also selected in Thailand Sustainability Investment (THSI) 2022’s listed by the Stock Exchange of Thailand for the third consecutive year, in recognition of its business models that benefit the economy, society, and environment.
Driven by its success, WHAUP has set its sights on continued growth. For 2023, WHAUP has outlined its business plans and directions to grow through innovations and achieve sustainable growth, with a focus on expanding its operations inside and outside of the WHA Industrial Estates, both in Thailand and Vietnam. The company has allocated an investment plan of THB 18.5 billion over the next five years (2023-2027) with the goal of generating revenue and a normalized share of profits totaling THB 27 Billion (2023-2027), while maintaining an EBITDA margin of no less than 50% through its strategic business plans as follow;
Utilities Business This year, the company will continue to expand new products and solutions, with a focus on value-added water products. The sales target for water supply and wastewater management has been set at 168 million m3, an increase from 145 million m3 in 2022. This is derived from domestic water sales and wastewater management volume, which is expected to increase to 135 m3 in 2023. The growth is driven by rising water demand from both existing and new customers who signed water purchase agreements in 2022, with a total water capacity of 15 million m3 per year.
Furthermore, WHAUP has started operating in water production plant and wastewater treatment plant to serve the growing water demand. Besides, a new water treatment plant and a wastewater treatment facility in WHA Rayong 36 Industrial Estate was completed and has already commenced operations with a capacity of 3.3 million m3 per year. The company is also preparing to build a new wastewater treatment plant in the WHA Industrial Estate Rayong in this February, with a capacity of 5.8 million m3 per year.
Additionally, the company has initiated projects to secure alternative raw water resources, with 2 projects underway to secure water supply reliability. These projects have a combined production capacity of 10 million m3 per year. The first raw water project was established to support the WHA Rayong 36 Industrial Estate and the WHA Industrial Estate Rayong, and has already been commissioned, whereas the second project at WHA Eastern Seaboard Industrial Estate 4, will start construction in 1Q’ 2023.
For the utilities business in Vietnam, where the company has 3 water projects under operations, it is expected to experience continued growth. It is estimated that the water sales volume will increase by 33 million m3 in 2023, up from 28 million m3 in 2022, as a result of an expanding customer base and an increase of water supply coverage areas.
Power Business The company aims to enlarge its portfolio in Thailand and Vietnam, and to explore new markets overseas. It will continue to implement innovative and sustainable practices, while seeking new opportunities with new S-Curve businesses such as Battery Energy Storage Systems (BESS), Hydrogen, and Carbon Trading. In 2023, the company will expand its portfolio in renewable energy including solar energy, industrial waste energy, and other energy resources both locally and internationally. It targets to increase the cumulative signed Renewables Power Purchase Agreements (PPAs) to 300 MW, from last year which it had cumulative signed contract of 136 MW. The company has participated in the bidding process for a renewable energy project through the Feed-in Tariff (FiT) scheme, which is open for purchase by the Energy Regulatory Commission. Currently, five of the company's projects have successfully passed the technical selection stage. The final results of the bidding round is expected to be announced by the end of March.
At the same time, the company places emphasis on incorporating innovative digital solutions to grow its businesses. It has collaborated with PTT and Sertis to develop the Renewable Energy Exchange ("RENEX") platform, a Peer-to-Peer energy trading system using Blockchain technology. The RENEX platform improves transaction efficiency and security and has already been implemented for solar energy trading with 54 customers within WHA Industrial Estates.
The company is also exploring the development of Carbon Credit trading on the RENEX platform. This will involve registering solar projects under the Thailand Voluntary Emission Reduction Program (T-VER) and the International Renewable Energy Certificate (I-REC), which is a green certificate certified by the I-REC standard.
"WHAUP is determined to explore investment opportunities in utilities and power businesses both domestically and internationally to drive business growth and strengthen its operations. The company prioritizes the use of innovative solutions while maintaining a focus on sustainability and environmental, social, and governance considerations. The goal is to reach net zero greenhouse gas emissions by 2050," concluded Mr. Somkiat.
