CK Power Plc (CKPower) posted a record-high in revenue of last year and has earmarked 2.6 billion baht to invest in this year, leading to one of the region's largest producers of electricity from renewables.
Thanawat Trivisvavet, managing director of CKPower, one of the region's largest producers of renewables-based electricity, said the company posted record-high total revenue and net profit in 2021, earning 9.33 billion baht in total revenue – a 2.16 billion baht or 30.1% increase from 2020. The company posted a net profit of 2.18 billion baht, 438.4% increase year-on-year.
The primary driver of the 2021 revenue growth was the sales of electricity of the Nam Ngum 2 Hydroelectric Power Plant and Bangpa-in Cogeneration Power Plant, which rose 98.9% and 5.4% respectively. Another contributing factor was a 74.1% increase in project management income, primarily due to the recognition of the management fees of a new hydroelectric power project in the Lao PDR starting from Q4/2020 onwards.
The surge in the 2021 net profit was primarily attributable to the growth of the sales of electricity of the Nam Ngum 2 Hydroelectric Power Plant and the rise in share of profit from investment, derived mostly from an increase in the net profit of the Xayaburi Hydroelectric Power Plant resulting from a 20.0% boosted inflow volume through the power plant compared to the previous year. In addition, the Xayaburi Hydroelectric Power Plant reported reduced financial expenses due to loan principal repayment and a decline in interest rates from the previous year. Furthermore, as CKPower increased its shareholding in the Xayaburi Hydroelectric Power Plant from 37.5% to 42.5%, the recognized share of profit grew accordingly.
Mr. Thanawat said the 2021 operating results set a historic high both in terms of the total revenue and the net profit. The increased output of all power plants under CKPower and its expanded shareholding in the Xayaburi Hydroelectric Power Plant were the main contributors to this growth, which not only exceeded the figures the company had projected but also testifies to the effectiveness of CKPower's management approach in generating returns for its shareholders and stakeholders.
Beyond delivering reasonable returns to all stakeholders, CKPower also seeks to become one of the region's largest producers of electricity from renewables with one of the lowest carbon footprints in support of Thailand's effort to achieve net-zero greenhouse gas emissions by 2065.
"For 2022, CKPower has planned to invest in renewable energy projects both in Thailand and Southeast Asia and has allocated a budget of 2.6 billion baht for capital injection to the development of a new hydroelectric power project in the Lao PDR in proportion to our shareholding and for investing in other projects. All of our new installed capacity will be based on renewables, including solar power, hydro power and wind power and we will increase our installed capacity to 4,800 megawatts by 2024, which will result in 95% of our company's total electricity generating capacity being based on renewables," added Mr. Thanawat.
