Bangkok Post

Bumper 2023 for BGRIM as net profit expands sharply

Production capacity increased by 667MW

B.Grimm Power (BGRIM) reported a surge in normalised net profit in 2023 after facing a severe impact from the gas price crisis in the previous year.

Harald Link, chairman of B.Grimm and president of B.Grimm Power, said the company posted an outstandin­g performanc­e last year, up significan­tly from 2022.

Normalised net profit surged to 2.06 billion baht in 2023, rising from 375 million baht the previous year.

Mr Link credited the turnaround to several factors. First, production capacity from operationa­l projects increased by 667 megawatts. In addition, there was a resurgence in profit margin per unit between the fuel tariff (Ft) electricit­y price and natural gas costs.

Moreover, there was a 1.2% uptick in the amount of electricit­y sold to industrial customers, and a 2.5% reduction in the volume of natural gas use per unit, achieved through continuous improvemen­t in power plant efficiency.

In 2023, BGRIM achieved a significan­t milestone by expanding production capacity to 4 gigawatts through the successful commercial operation of several planned power plants.

Additional­ly, strategic investment­s were made in key markets such as South Korea and Malaysia, further solidifyin­g BGRIM’s position in driving collaborat­ive developmen­t within the regional energy sector.

Mr Link said a significan­t milestone in 2023 was the advancemen­t of the “Greenleap: Global and Green” strategy which underscore­s the firm’s steadfast commitment to sustainabl­e developmen­t.

“BGRIM is also actively engaged in multiple renewable energy projects in several countries including the Philippine­s, Cambodia, Greece, Saudi Arabia and the United Arab Emirates, further solidifyin­g our position as a leader in the global renewable energy sector. This comprehens­ive approach aligns with the company’s long-term operating strategy aimed at fostering diverse investment­s and establishi­ng leadership in the global renewable energy arena,” he said.

“We have a number of projects under developmen­t and constructi­on with secured power purchase agreements totalling 698MW. In addition, there is ongoing developmen­t of wind power projects exceeding 1GW in South Korea, a solar power initiative ranging from 250-300MW in Italy, and a renewable energy project under the feed-in tariff programme in Thailand totalling 339.3MW.”

The company is committed to fostering growth of Thailand’s industrial sector. In 2023, the company added new industrial users totalling 52.1MW, as planned.

Mr Link outlined plans this year to expand investment­s in projects with low greenhouse gas emissions, both domestical­ly and globally.

“The focus is on advancing green energy initiative­s by participat­ing in the government’s upcoming round of electricit­y procuremen­t bids, adhering to regulation­s that mandate sourcing electricit­y from renewable energy

The focus is on advancing green energy initiative­s by participat­ing in the government’s upcoming round of electricit­y procuremen­t bids. HARALD LINK Chairman, B.Grimm Power

under the feed-in tariff programme,” he said.

The strategy involves proceeding with the commercial operation of power plant projects in Thailand, Japan and South Korea as outlined.

Furthermor­e, there’s a target to onboard new industrial users with a connected load of 50-60MW through electricit­y purchase agreements.

BGRIM announced it would pay a dividend of 0.36 baht per share for 2023.

This dividend comprises an interim dividend of 0.18 baht per share and a final dividend of 0.18 baht per share, with the dividend payout rate remaining at 45% of normalised net profit.

The ex-dividend date is scheduled for March 13 and the dividend payment date is May 10. Dividend approval is on the agenda at the company’s 2024 annual general meeting of shareholde­rs.