Gulf Energy eyes 50% revenue surge with power plant operations boost
Gulf Energy Development, a Stock Exchange of Thailand (SET)-listed firm, is looking forward to a 50% revenue surge, breaking past the 100 billion baht (US$3.03 billion) mark this year. This significant increase is due to the addition of electricity generation capacity and the full operation of its power plants.
In the previous year, the company’s earnings stood at 95 billion baht, a remarkable 90% growth from 49.9 billion baht in 2021, as reported by the Stock Exchange of Thailand’s website.
The anticipated revenue boost in 2023 is largely due to the Gulf’s power plants’ new capacity of 2,800 megawatts, shared Yupapin Wangviwat, the firm’s deputy chief executive and chief financial officer. With the power plants currently under construction, the total capacity is expected to hit 14,860 MW.
The key driver of this year’s revenue will be Gulf’s four gas-fired generation facilities in Chon Buri, operated by its subsidiary Gulf SRC Co. These facilities will mainly contribute under a 25-year power purchase agreement contract with the state-run Electricity Generating Authority of Thailand, which will procure 2,500MW.
Additional revenue will be generated from Gulf PD, another subsidiary that has already commenced the commercial operation of two new gas-fired power generation facilities, each with a capacity of 662.5MW. It also plans to launch two more facilities in March and October of the following year, reported Bangkok Post.
Gulf’s earnings also include revenue from its acquisition of a 49% share in a gas-fired power plant, Jackson Generation LLC, located in Will County, Illinois, through its subsidiary, Gulf Energy USA. The plant boasts a capacity of 1,200MW.
In Oman, the Gulf profits from Duqm Power, a gas-fired power plant with a capacity of 326MW. The company holds a 45% share in Duqm Power through its subsidiary, Gulf International Holding Pte.
In the renewable energy sector, Gulf announced the commercial operation of two waste-to-energy power plants, each with a capacity of 8MW, located in Chon Buri.
These facilities, which utilise industrial waste as fuel, sell electricity to the Provincial Electricity Authority under a power purchase agreement.
Operated by Power Watt 1 and Power Watt 2, two other Gulf subsidiaries, they are categorised under the very small power producer category in the Energy Regulatory Commission’s Purchasing Electricity from the Renewable Energy Sources scheme.
