B.Grimm Power play: Profits surge with plans to expand in future

Multinational conglomerate B.Grimm Power Plc (BGRIM) reported a robust performance with a significant increase in normalised net profit for the first half of this year, alongside ambitious plans to enhance investment partnerships and expand its renewable energy portfolio.

BGRIM President Harald Link highlighted that the normalised net profit attributable to the parent company rose by 2.3% year-on-year, reaching 1.09 billion baht. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) also saw an 8% increase, amounting to 7.55 billion baht.

The surge in profits is largely attributed to a 10.4% rise in electricity sales volume, totalling 7.57 billion gigawatt-hours. Notably, electricity sales to the Electricity Generating Authority of Thailand (EGAT) increased by 14.9%, spurred by the commercial operation of three small power producer plants in the first and fourth quarters of this year, which collectively added 420 megawatts of installed capacity.

Vietnam’s industrial users also contributed to the growth, with electricity sales rising by 8.2% and steam sales volume increasing by 16.4%, driven by expanded production capacity among existing customers and heightened demand.

In the second quarter alone, BGRIM reported a normalised net profit attributable to the parent company of 579 million baht, reflecting a 20.9% increase from the previous quarter. This improvement was driven by higher electricity sales to Egat, reduced natural gas prices, and an increased share of profit from investments in associates and joint ventures, indicating improved performance from three SPP power plants under Univentures BGP Co.

Tax privileges

Comparatively, performance declined year-on-year due to increased financial costs and higher income tax expenses following the expiration of tax privileges for the three power plants. The net profit attributable to the parent company, including unrealised foreign exchange losses and non-operating items, stood at 229 million baht.

In this year’s second quarter, BGRIM connected an additional 5.2 megawatts of capacity to the system from new industrial users in Thailand, particularly in the food and beverage and automotive parts industries. This brought the total capacity connected in the first half of 2024 to 11.2 megawatts.

To bolster long-term production capacity, BGP Holding (US), an indirect subsidiary of BGRIM, acquired the Malacha hydroelectric power project in northern California in the second quarter, which has an installed capacity of 30 megawatts. The company also plans to further expand by acquiring and developing renewable energy power plants in California and other states across the US.

BGRIM has over one gigawatt of projects currently under construction and development. In the second half of this year, the company aims to launch three renewable energy power plant projects: the U-Tapao Solar Power Plant Phase 1, the GIFU Solar Power Plant Project in Japan, and the KOPOS Onshore Wind Power Plant Project in the Republic of Korea.

Harald Link stated that BGRIM’s long-term goal is to achieve net-zero carbon emissions by 2050.

The company also targets an increase in production capacity to 10,000 megawatts by 2030, with more than 50% of this capacity expected to come from renewable energy sources.

The board of directors has approved an interim dividend payment of 0.18 baht per share for the first-half operating results. The XD date is scheduled for August 26, this year, with the interim dividend payment set for September 6, this year.

Link reiterated BGRIM’s commitment to achieving net-zero carbon emissions by 2050, reported Bangkok Post.