WHAUP announces 2020 Normalized Net Income of THB 764 Million; targets Solar capacity at 300 MW and proposes additional dividend of 0.16 baht/share

Bangkok - WHA Utilities and Power Plc (WHAUP) announced its 2020 performance with total revenue and normalized share of profits of THB 2,599 million, net income of THB 813 million and normalized net income of THB 764 million. Having a healthy operating cash flow and robust financial status, the company will propose the shareholders’ meeting to approve an additional dividend of 0.16 baht per share, adding to the interim dividend payment of 0.0925 baht per share previously paid. The five-year investment budget is set at THB 12 billion and the company targets a domestic capacity of Solar rooftop to grow at 6 times, totaling 300 MW.

WHA Utilities and Power Plc (WHAUP) reported its 2020 performance ending on 31 December 2020. The company earned a total revenue and normalized share of profit of THB 2,599 million, declining 25% from 2019, and a normalized net income of THB 764 million, which better reflects WHAUP’s operating performance, decreasing 56% from 2019. The decrease of Normalized Net Income was primarily due to declining share of profits from the power business according to power purchase agreement, the drought and the COVID-19 pandemic. However, by moving toward 2020; WHAUP continues to expand its power and utilities businesses portfolio both inside and outside Thailand along with development of innovative products and solution for renewable energy and utilities services. The company sets 5-year investment budget (2021-2025) at THB 12 billion and foresees a 25 % growth in normalized share of profits and maintains high EBITDA Margin at the level at least 50% in 2021.

Dr. Niphon Bundechanan, Chief Executive Officer of WHA Utilities and Power Plc, said that in 2020 the company was affected by the reduction in share of profit from Gheco-One Power Plant due to the structural change of availability payment based on its power purchase agreement and declining coal prices. Meanwhile, Small Power Producers (SPPs) continued to record solid performance despite the Covid-19 pandemic. The financial results from Small Power Producers’ operation in the second half rebounded strongly, with the share of normalized profit growing 28% from the first half. The company also earned an additional share of profit from Chonburi Clean Energy (CCE), the Waste-to-Energy Power Plant, which commenced its operation at the end of 2019. 

The solar business grew consistently with power purchase contracts totaling 51 megawatts at the end of 2020, of which 40 megawatts already began commercial operation by this year. The company further sets capacity target with 6 times growth within 3 years resulting in 300 megawatts. WHAUP continues toward its commitment with renewable energy initiatives. It continued an expansion of renewable energy business portfolio especially solar power; including rooftop, floating and ground-mounted systems to supply electricity to customers both inside and outside WHA industrial estates. In addition, the company has formed partnerships with other entities, such as the Provincial Electricity Authority (PEA), to jointly study technology development and power innovation in different aspects such as the peer-to-peer energy trading which adopts blockchain technology.       

The CEO of WHAUP added that 2021 power business plan aims to continuously invest in and outside WHA Industrial estates both Thailand and Vietnam, as well as finding M&A opportunity. WHAUP aims to reach electricity-generation capacity of 670 megawatts, based on the company’s shareholding equity.

In terms of utilities business, total sales and management volume from domestic and international market managed to reach 114 million cubic meters per year increasing 4% from 2019 despite the drought and Covid-19 pandemic in 2020. However, the drought and the Covid-19 situations have been easing in the second half of the year, prompting customers to resume their business operations and driving higher consumption in fourth quarter accordingly. This improved situations resulted in a growth in total domestic sales in the fourth quarter from the third quarter.  Similarly, the company foresees the potential growth in 2021 utilities sales and management volume at 34% from 2020, or totaling 153 million cubic meters per year.

Likewise, the company recorded additional revenue generated by value-added products, namely demineralized water, premium clarified water in which WHAUP will continue to expand investments in as well as investing in wastewater reclamation. In 2020, the company expanded its wastewater reclamation project to 11 million cubic meters per year which can be converted to demineralized water and premium clarified water in response to the demand of industrial customers. Apart from multi-purpose benefit of wastewater reclamation, this project encompasses the cost-saving benefit from a raw water purchase. The company still continues growing this project in next year.

In Vietnam, WHAUP began providing water sales and wastewater treatment services to customers in WHA Industrial Zone 1 – Nghe An in 2019, and expects the volume of water sales and distribution in 2021 to rise to 500,000 cubic meters per year. WHAUP also invested in two tap water companies. Cua Lo Water Supply Co, the producer and distributor of tap water in Nghe An, where WHAUP holds a 47.3% stake, plans to hike its capacity from 4.7 million cubic meters per year to 8.4 million cubic meters in 2021. Nghe An city is experiencing high population growth and increased economic activities, so water demand is on the rise.  The second company, Duong River Surface Water Plant Co (SDWTP), a leading tap water producer in Hanoi where WHAUP holds a 34% stake, has expanded its operation coverage to industrial areas in Hanoi and nearby cities such as Bac Ninh and Hung Yen. SDWTP is expanding its tap water service coverage in the three cities and estimates tap water sales in 2021 to reach 76 million cubic meters per year, or a 45% surge from last year.