Bangkok--11 Nov--Glow Energy
Robust 9-month results with 32% year-on-year increase in Normalized Net Profit
For the third quarter of 2010, Glow Group (“Glow”) posted:
- Consolidated total revenues of THB 8,931 million,
- Earnings Before Interest Taxes Depreciation and Amortization (“EBITDA”) of THB 2,257 million,
- Normalized Net Profit (“NNP”) (net profit before unrealized foreign exchange gains and losses) of THB 931 million, and
- Net Profit of THB 1,804 million.
For the first nine months of 2010, key results posted are:
- Consolidated total revenues of THB 27,249 million,
- Earnings Before Interest Taxes Depreciation and Amortization (“EBITDA”) of THB 7,308 million,
- Normalized Net Profit (“NNP”) (net profit before unrealized foreign exchange gains and losses) of THB 3,531 million, and
- Net Profit of THB 4,649 million.
The core operating results, both EBITDA and NNP, for first nine months of 2010 continued to be strong, while Glow also recorded substantial unrealized foreign exchange gain resulting from strengthening Thai Baht.
Healthy operating margin and growing demand are key drivers
Compared with the same period last year, EBITDA of the first nine months increased by 25% while the NNP increased by 32% in the same period. The key drivers for these increased results are growing power demand from industrial customers and healthy operating margins. Meanwhile, the results of the third quarter are lower than in two previous quarters, mainly because of lower availability of the generating plants due to planned outages, which took place during this quarter.
The results reported for the first nine months of 2010 confirm the strong fundamentals of the business. Demand from industrial customers continued to be strong, with 16% increase of electricity consumption and 2% increase of steam consumption compared to the same period last year. On the operational side, there have been very few unplanned outages in both the Cogeneration and IPP business. The operating margin for the third quarter is healthy and relatively stable.
Mr. Suthiwong Kongsiri, CFO of Glow Group, commented: “Despite positive impact from demand and operating margin, the strengthening Thai Baht adversely affects our Normalized Net Profit. The main element affected is revenue from sales to EGAT, as Availability Payment and Capacity Payment are directly linked to the THB/USD exchange rate. In principal, our risk management strategy is to hedge foreign exchange rate risk on free cash flow level. Therefore, even though the effect from strong Thai Baht to free cash flow after debt repayment may be minimal, the effect to NNP may be meaningful. We estimate the year-to-date negative effect from strengthening THB to NNP to be around THB 200 million.”
115 MW coal-fired power plant started commercial operation in November 2010
Glow’s new 115 MW coal fired cogeneration plant started commercial operation and supply to industrial customers in the beginning of November. Mr. Esa Heiskanen, CEO of Glow Group, commented: “Commercial operation of this plant marks the first milestone of our growth program. By the end of 2011, we are scheduled to start commercial operation of two more plants, a 382 MW gas-fired cogeneration plant and a 660 MW coal-fired IPP plant, which are currently under construction. These will further strengthen our business.”
For further details please contact:
Natthapatt Tanboon-ek
Glow Energy Plc.
Tel. 02-670-1500-1
Email :
[email protected]