Bangkok--Aug 17--Glow Energy
Glow Energy recorded first half normalized net profit of Bt 2,293 mn, up 20% from the same period last year.
Glow Energy Public Company Limited (“Glow”), one of the largest private electricity generators and providers of industrial utilities in Thailand, announced a normalized net profit (net profit excluding unrealized foreign exchange gains/losses), of Bt 2,293 mn, up from Bt 1,913 mn a year earlier or an increase of 20%.
Peter Termote, CEO of Glow made the following comments on the results of the first 6 months 2005.
“Glow’s relevant benchmark is the evolution of the normalized net profit since (a) the large majority of the unrealized foreign exchange gains/losses are coming from the USD debt in our IPP business which is fully served by USD linked income and therefore not a cash exposure; and (b) it is the basis used to size the Company’s dividend distribution amount. The performance for the first half of 2005 was very satisfactory. For the Cogeneration business, as a result of our focus on operational excellence, normalized net profit totaled Bt 1,537 mn, in line with the previous year and far better than in 2002-2003. This was achieved despite the rising fuel costs, more particularly coal costs, which is a factor as yet outside the control of Glow. The results of Glow IPP have improved substantially with normalized net profit at Bt 756 mn. an increase of nearly Bt 377 mn from the previous year, though it must be noted that the most of the increase in the IPP business is from non-recurring events.”
For the second half of 2006, he mentioned that one of the key risk to the performance of the Company is the supply of water, but such risk has now materially been mitigated.
“Regarding the concern over the water situation in Rayong, Glow believes that the government measures being undertaken will alleviate this problem. We now believe that there is less risk of a water shortage this year. Further more, the Company has taken extra precautionary measures to mitigate any unexpected water shortage by entering into a 1 year water supply agreement. This supplemental water supply ,if ever needed, will be delivered by ships at our harbor facilities. First delivery will take 1 month from the day Glow notifies the water supplier.
Mr. Termote concluded by adding:
"For the medium term, we are investigating the possibility of building desalination units as back-up or for supply of water to our customers. We believe we are well position to do this in view of our proximity to the sea and the synergy with our power plant facilities."
About Glow Energy
Glow Energy group is a major energy player in Thailand. Its combined installed capacities include 1,670 MW of electricity and 897 tons of steam per hour. In 2004 the group posted consolidated net earnings of 4.0 billion baht on 27.3 billion baht consolidated revenues.
Glow Energy owns power producers and utility providers which generate and supply electricity to the Electricity Generating Authority of Thailand (EGAT) under Thailand's SPP (Small Power Producer) and IPP (Independent Power Producer) programs, as well as electricity, steam, industrial water and services to large industrial customers principally located in the Map Ta Phut area.
SUEZ Energy International is Glow Energy’s major shareholder and is a business division of the SUEZ group, one of the largest international industrial and services groups in the world.
For more information about SUEZ or SUEZ Energy International, please visit the companies’ websites at www.suez.com and www.suezenergyint.com. For more information about the Glow Group please go to www.glow.co.th
For further details please contact
Sirote Vichayabhai
Glow Energy Plc.
Tel. 0-2-670 1500
Email [email protected] End.