WHAUP Enjoys 11% Growth of Water Sales in Q1; Expects Continuous Expansion of its Solar Rooftop Business

Tuesday 17 May 2022 10:38
WHA Utilities and Power Public Company Limited (WHAUP) continued to show strong performance in utilities and power services in Q1/2022, with 11% growth of total water sales volume, and adding secured more than 13 MW of Solar Rooftop installed capacity in its portfolio. The Peer-to-Peer Energy Trading Project has been completed, and expects to COD in the second half of this year. The Q1 total revenue and normalized share of profit amounted to THB 608 million, and the normalized net profit amounted to THB 69 million. Mr. Somkiat Masunthasuwun, WHAUP Chief Executive Officer, insists to keep on expanding water and power businesses both locally and internationally, while focusing on "Operational Excellence" to further increase customer confidence and to enable sustainable growth.
WHAUP Enjoys 11% Growth of Water Sales in Expects Continuous Expansion of its Solar Rooftop Business

Mr. Somkiat Masunthasuwan, WHAUP Chief Executive Officer, revealed the company's Q1/2022 performance, showing a total revenue and normalized share of profit of THB 608 million and normalized net profit of THB 69 million, down 22% and 63% respectively, compared to the same period last year. Net profit stood at THB 78 million, down 40% year-on-year.

WHAUP's core businesses, under its own investments and operations in utilities in industrial estates and solar rooftops continued to grow. This was reflected by the overall growth of domestic and international water sales and management volume, which rose by 11% year-on-year. In addition, the company signed an additional five solar power purchase agreements, representing a total capacity of 13 MW. With a capacity of 10 MW, the Mega Bangna project is the largest Solar Rooftop project outside WHA industrial estates that WHAUP has ever made. The project will be ready for commercial operations in early 2023. However, the company's Q1/2022 performance decline was mainly due to the lower normalized share of profit from SPP and IPP power businesses, due to a higher fuel price and a maintenance shutdown.

Utilities Business - In Q1/2022, WHAUP's utilities business, locally and internationally, grew continuously, rising by 11% compared to Q1/2021. In Thailand, water sales and management volume accounted for 30 million cubic meters, mainly due to an increasing water demand from customers in the power and petrochemical sectors, in particular GSRC, the natural gas power plant of Gulf Energy Development PLC (GULF), which started commercial operations its unit 1 and unit 2 in 2021. The demand for value-added products such as demineralized water and premium clarified water also continued to grow.

For International Utilities Business, the Duong River Surface Water Plant (SDWTP) project in Vietnam recorded total water sales and management volume of 6 million cubic meters, according to the company's shareholding equity, rising 24% compared to Q1/2021. It was due to an increasing water demand from both existing and new customers.

Power Business - In Q1/2022, the normalized share of profit from power business amounted to THB 43 million, down 74% year-on-year. This was mainly due to a huge increase in a gas cost in SPP business, while Ft has not been adjusted to fully reflect the rising cost, causing the decline of margin from electricity dispatch to Industrial customers. The 18-day maintenance period at the Gheco-One power plant also negatively affected the performance.

In the renewable energy business, the company continued to expand its investments, recognizing revenue from solar power projects that are under commercial operations for around 60 MW. This enabled the company to realize the revenue growth of more than 55% compared to the same period last year. At the end of Q1/2022, the company had solar power purchase agreements totaling 105 MW, representing a total capacity of 655 eq MW.

The Peer-to-Peer Energy Trading project, using Blockchain technology to trade solar electricity among customers in WHA industrial estates to enhance their competitiveness by reducing electricity bills and reducing carbon emissions, has been completed. Towards the testing period which is part of the Energy Regulatory Commission's Energy Innovation Experiment Project (ERC Sandbox), twenty-three companies have participated. Commercial operations are expected to commence in the second half of this year. This project will be one of the main driving factors contributing to the growth of the company's renewable energy business in the future.

WHAUP CEO also confirmed the company's 2022 business expansion plan, ensuring that the developing utilities and solar rooftop businesses are ready to be commercialized as planned, to serve the needs of both existing and new customers. In addition, the company still puts emphasis on Operational Excellence to ensure that the company's water and power plants are able to supply water and power to customers. It will keep on developing the various water and renewable energy solutions to complement WHAUP's core business. In particular, WHAUP will continue expanding the solar energy business for customers within and outside WHA Group's industrial estates. It aims to achieve its target of accumulated solar power purchase agreements of 150 MW this year and reach 300 MW by 2023.

Reflecting the company's strong financial position, on April 22, 2022, the Annual General Shareholders Meeting (AGM) approved the total dividend payment for the 2021 operating results of 0.2525 baht per share, divided into interim dividends of 0.0925 baht per share already paid to shareholders on 8 December 2021, and an additional dividend of 0.16 baht per share, scheduled for payment on 19 May 2022.

Source: Media Planner Consultant