Positive factors for the Q1 revenue were a Baht 161 million or 9.8% YoY boost in the revenue from sales of electricity and steam of Bangpa-in Cogeneration Power Plant due to a surge in global gas prices, coupled with the raising of retail Ft rate by the government. Conversely, the revenue from sales of electricity of Nam Ngum 2 Hydroelectric Power Plant (NN2) showed a slight decline compared to the previous year due to a lower water level in the reservoir at the beginning of the year compared to the previous year and the lower inflow volume in Q1. In response, CKPower declared its electricity production with conservative approach to ensure an adequate water supply for the production in the first half of 2023, which coincides with the dry season.
In Q1/2023, CKPower reported Baht 2,324 million in operating expenses, reflecting a Baht 121 million or 5.5% increase. This can be attributed to a Baht 86 million rise in BIC's fuel costs and Baht 37 million increased in the operation and maintenance expenses related to a major overhaul of NN2. In addition, CKPower recognized the share of loss from investment in Xayaburi Hydroelectric Power Plant (XPCL), resulting from a decrease in the sales volume of electricity due to lower water flow volume as well as from the rise in XPCL's financial costs following global interest trends. As a consequence, CKPower's share of loss from investments in associates increased by Baht 152 million compared to the same period last year, leading to a net loss attributable to equity holders of Baht 104 million in Q1/2023.
CKPower's financial position remains robust, with its total liabilities declining by 3.0% from the end of 2022, primarily due to the redemption of NN2's debentures in March 2023. At the end of March, TRIS Rating maintained the A/Stable credit rating for CKPower and the A-/Stable credit rating for all of its debentures, further emphasizing the company's solid financial position.
Mr. Thanawat acknowledged the various operational challenges faced by CKPower in the first quarter of the year, particularly the rising fuel costs and major maintenance costs. However, he also shared positive news for the company's shareholders. The 2023 Annual General Meeting of Shareholders, held on April 25, 2023, approved a dividend payout of Baht 0.085 per share, amounting to approximately Baht 691 million. Shareholders listed on the record date of May 8, 2023, will be eligible for the dividends, which are scheduled for payment on May 22, 2023.
"CKPower is committed to further optimizing its expense management in order to maintain a sufficient cash reserve, in preparation for external factors beyond its control such as fuel costs, inflow volumes and interest rates. The trend for the operating results in the second half of the year should become clearer once the inflow volume can be more precisely determined towards the end of the second quarter which coincides with the rainy season," concluded Mr. Thanawat.
As for its achievements in terms of social and environmental stewardship in the past year, CKPower was named the Most Sustainable Hydro Power Company in Thailand at the Global Economics Awards 2022 hosted by the Global Economics Magazine, which reflects the sustainable operations of its hydroelectric power plants, and was recognized with the Best Green Bond Hydropower Plant Framework Award - Thailand at the International Finance Awards 2022 hosted by the International Finance Magazine, a testament that the green bonds issuance of its hydroelectric power plant meets international standards. CKPower also won a Platinum Award at the ESG Corporate Awards 2022 organized by the Asset Magazine, which demonstrates its sustainable business practices and responsibilities towards all stakeholders across all dimensions of ESG on par with international standards. Together, these accolades highlight CKPower's dedication to responsible business operations under the principles of corporate governance.
In relation to greenhouse gas (GHG) emissions from its operations, CKPower successfully avoided 780,710 tCO2e of GHG emissions in the previous quarter through its renewables-based power plants. This accomplishment aligns with the company's goal of achieving net zero GHG emissions by 2050.
Source: CK Power