Bangkok--11 Aug--Glow Energy
Glow Energy reported consolidated total revenues of Bt15,908mn, EBITDA of Bt4,513mn and normalized net profit (equals to net profit before unrealized foreign exchange gains and losses) of Bt2,388mn for the 6-months results ending 30 June 2006. The normalized net profit represents a year-on-year increase of Bt94mn or an increase of 4.1%. The Company, recently awarded “Best Newly Listed Company” in the SET Awards 2006, also announced an interim dividend of Bt0.60 per share.
Mr. Peter Termote, the CEO of the company gave the following remarks on the half year results “We are pleased with the results which again reflects the solid fundamentals and the stability of the company. Despite difficult economic conditions whereby the WTI rose above USD70/barrel together with the constant downward pressure on the GDP growth, the company still managed to deliver competitively priced steam and electricity to its customers and higher (normalized) profits. The result was driven by strong performance in the cogeneration business where the key driver was the higher sales to industrial customers.”
On the outlook of the business, Mr. Termote explained that ”The next 6 to 12 months is a crucial period for the company as visibility on the growth path improves. There will be an additional offtake of 20.5 MW in Q3 06 and 40 MW & 30 tph in Q1 07.
The company also hopes to enter, by the end of 2006, into more new contracts for the medium term expansion of the cogeneration business and believes it will have a competitive advantage based on the reliability of supply secured through large interconnected network, operational track record and expertise. The RFP for the new round of IPP bidding is also expected to be finalized by the middle of 2007 and there again the company should be well placed to make a competitive bid whilst creating value for the shareholders. Together, these opportunities represent substantial growth prospects for the company. In total, it is possible that the company could add around 100-200 MW to its cogeneration business and another 700 MW to its IPP business (through GHECO) by the 2010-2012 period.”
Mr. Suthiwong Kongsiri, the CFO of the company further added “On top of these growth opportunities, the unique characteristic of our business allows us to fund these growth opportunities by internal cash flows while at the same time, continue to pay a regular stream of dividends. Hence, we are very pleased to announce that the Board of Directors has approved the payment of an interim dividend based on the results of the 6 months period ending 30 June 2006 for an amount of Bt0.60 per share. This amount is equivalent to around 37% of our normalized net profit and 40% of 2005 normal dividends (for the results of 2005, Glow Energy paid total dividends of Bt2.25 per share which comprised of a normal dividend of Bt1.50 per share and a special dividend of Bt0.75 per share), a prudent payout ratio given the potential growth prospect. We would like to reiterate that Glow Energy will continue to closely monitor its expected cash flows and actively manage its cash so that the long term shareholders value is maximized. ”
About Glow Energy
Glow Energy group is a major energy player in Thailand. Its combined installed capacities include,1,709 MW of electricity and 968 tons of steam per hour. In 2005 the group posted consolidated net earnings of 4,300 million baht on 28,596 million 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]