Bangkok--13 Aug--Glow Energy
Glow Group (“Glow”) posted consolidated total revenues of THB 17,245 million, Earnings Before Interest Taxes Depreciation and Amortization (“EBITDA”) of THB 3,660 million and Normalized Net Profit (“NNP”, net profit before unrealized foreign exchange gains and losses) of THB 1,771 million for the 1st half of 2009.
Glow delivered a NNP for the 2nd quarter of 2009 of THB 1,173 million, a 96% increase from THB 598 million in 1st quarter of 2009. The improved profitability in the 2nd quarter of 2009 is mainly driven by a more favorable business environment which included a recovery of our industrial customer’s demand, lower fuel costs and stable electricity tariffs. Additionally high plant availability and proceeds from insurance claim contributed to the positive results.
Industrial customer sales volume continued to improve from 1st quarter 2009 and has returned to normal levels. Our profit margin from industrial customer sales also continues to improve as gas and coal costs have gradually reduced since 1st quarter. In particular the coal price has decreased dramatically in 2nd quarter and has dropped to around 70 USD/Ton by end of 2nd quarter compared to 125 USD/Ton, at the same time last year.
The 150 MW coal-fired power plant (“CFB#1”), which suffered an outage in 1st quarter, resumed normal operations in March, resulting in much higher plant availability in the 2nd quarter 2009. In addition, the Company has started to receive payments from the Business Interruption claim, an amount of about THB 170 million out of the total claim of approximately THB 300 million was booked in the 2nd quarter.
With improving results and having secured all funding required for expansions in 2009, Glow is increasing its interim dividend to THB 0.70 per share from THB 0.60 in previous years. The record date for shareholders to be eligible for receiving the interim dividend is 27 August 2009 and the payment date for the interim dividend is 11 September 2009.
Mr. Esa Heiskanen, the CEO of Glow Group commented: “We are very satisfied with the performance posted in 2nd quarter 2009. The business environment became more favorable and our operational performance improved during this quarter. At the beginning of the year, we were very concerned with our industrial customer’s sales volume, fortunately demand has continued to improve from 1st quarter and has now returned to normal level. Meanwhile, we are expecting a continuing recovery of our profit margin in the Cogeneration business where last year fuel prices were high, while the power tariff or Ft was not adjusted to reflect those high prices. This year fuel prices have reduced, especially for coal, where this year coal price had dropped by nearly 50%. In addition to the improving business environment, we will have new demand from industrial customers whose new plants are now under commissioning. Our new 115 MW coal-fired power plant is scheduled to come on-line by the end of the year and will fully contribute to higher earnings in 2010. For the next two years, Glow will continue to be the power company in Thailand with the highest organic growth of over 1,300 MW or 67% increase in capacity”.
Mr. Suthiwong Kongsiri, the CFO of Glow Group further added “We are glad to announce that the Board has approved an interim dividend payment for this year of THB 0.70 per share, which is 10 satang higher than what we have traditionally paid as an interim dividend in the past. This increase reflects the management’s confidence in securing future funding for our expansions while market liquidity has also improved. Our funding for next year will require tenors of only between 2 to 4 years. Investors can rest assured that Glow will continue to optimize its balance sheet. We aim to be a company that is not only defensive in terms of a favorable dividend yield comparable to our peers but also a company with the highest committed growth prospects in the industry”.
About Glow Energy
Glow Energy is a member of the Glow Group who is a major energy player in Thailand. Glow Group combined installed capacities include 1,860 MW (Glow’s stake is 1,775 MW) of electricity and 967 tons per hour of steam.
Glow Group generate and supply electricity to 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 and nearby.
GDF SUEZ Energy International is Glow Energy’s major shareholder and is a division of the GDF SUEZ Group, one of the largest international industrial and services groups in the world.
For more information about GDF SUEZ or GDF SUEZ Energy International, please visit the companies’ websites at www.gdfsuez.com and www.suezenergyint.com. For more information about the Glow Group please go to www.glow.co.th
For further details please contact
Natthapatt Tanboon-ek
Glow Energy Plc.
Tel. 02-670-1500-1
Email : [email protected]