Mr. Kirana Limpaphayom, Chief Executive Officer of Banpu Power Public Company Limited, said "Over
the past months, the global business and economic environment has been in a highly challenging situation, but Banpu Power is able to maintain strong business growth. All of our power plants continue to operate with efficiency as we focus on improving the power plants' operational stability and adopting High Efficiency, Low Emissions or HELE technologies especially during the third quarter of this year. Zhengding power plant in China was subsidized by local government thanks to its low emission control capabilities. We also manage to ensure that our power plant projects including Shanxi Lu Guang power plant in China and 2 solar power plants, Yamagata and Yabuki, in Japan, can achieve their commercial operation dates as planned. Strong cash flow management is another key driver for us to be ready to invest in new projects in the future and achieve our growth target."
For Shanxi Lu Guang power plant project (SLG) with the equity committed capacity of 396 MW, the construction has progressed by 89% with the completion of transmission line and substations. It is expected to achieve COD in the fourth quarter of this year. SLG is equipped with the advanced Ultra-Supercritical (USC) technology. Its High Efficiency, Low Emissions (HELE) operation allows the power plant to generate quality electricity through a high-voltage-1,000-kV transmission line, which is capable of transmitting electricity over long distances and in large volumes with a low loss rate. It can also produce steam for Changzhi prefectural city, which is located near the power plant. These are responses to China's power market development direction, which focuses on advanced technology generating electricity that has high stability and is environmentally friendly.
For Q3/2020, BLCP power plant in Thailand reported an Equivalent Availability Factor (EAF) at 100% while HPC power plant in Lao PDR reported at 72%. The HPC power plant resumed normal operation after the completion of unit 3 maintenance and stability improvement. It also aims to maintain an average EAF for this year at 80%. As for the 3 Combined Heat and Power (CHP) plants in China, they have continued to operate efficient power and steam distribution to meet the demands of residential and industrial customers.
Under Banpu Group's Greener & Smarter strategy, Banpu Power aims to create sustainable growth by taking Environment, Society and Governance (ESG) principles into consideration to add value and maintain a balance between cash flow and return for all stakeholders. Recently, Banpu Power has been listed in the MSCI GLOBAL SMALL CAP INDEX which will be effective from 30 November 2020 onwards. This will attract investments from both domestic and international institutions as it reflects the Company's strong fundamental factors and high-liquidity stock, which emphasizes our priority in generating returns to shareholders. Moreover, we are committed to achieving the power generation capacity of 5,300 MWe in 2025 through 3 strategies: 1. leverage synergy within Banpu Group to further develop and operate the power generation business in the countries where Banpu already has businesses such as the United States 2. seek for investment opportunities in countries with high economic growth and high demand for electricity in Asia-Pacific by combining between investments in operating projects that generated instant cash flow and green field investments that allocate lower costs but gain more profits by using HELE technologies to deliver stable and environmentally friendly electricity at an affordable price, and 3. drive the growth of renewable energy and energy technology through investment in Banpu NEXT to strengthen the power generation business and match with the future energy trend. These 3 strategies will enable Banpu Power to further expand its business opportunities such as investing in gas-fired power plant business in the United States and renewable energy businesses in Vietnam," added Mr. Kirana.
In Q3/2020, Banpu Power Public Company Limited reported its operating results with Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) of THB 916 million, a 13% decrease compared to previous quarter, with a total operating profit of THB 845 million, a 24% increase compared to previous quarter. Total revenue from 3 CHP power plants in China was THB 972 million, a significant increase from the previous year due to an increase in sales volumes of electricity and steam which reflected the recovery of the Chinese economy after the COVID-19 crisis. The Company recognized a share of profit of THB 637 million from BLCP and HPC power plants.
