WHA Utilities and Power Public Company Limited (WHAUP) informed the Stock Exchange of Thailand (SET) about its Q3/2023 performance, with the company recording normalized total revenue and normalized share of profits of THB 1,191 million and normalized net profit of THB 475 million, a year-on-year increase of 72% and 426%, respectively. Net profit, including foreign exchange effects, stood at THB 512 million, and increase of 1,844% from the year before.
Performance in the first nine months of 2023, the company recorded normalized total revenue and share of profits of THB 3,068 million, an increase of 44%, and normalized profits of THB 1,123 million, an increase of 165% YoY, and net profit of THB 1,250 million, an increase of 304% YoY. The increase in normalized profit can be attributed to the rise in the normalized share of profits from the power business due to the adjustment of the Ft rise which reflects the natural gas costs. As a result, the profit derived from the SPP power business, distributed to industrial customers, has recovered. Meanwhile, water sales volumes in both Thailand and Vietnam continue to grow steadily.
Mr. Somkiat Masunthasuwun, Chief Executive Officer of WHA Utilities and Power PLC (WHAUP), said the overall utilities business (water) in Q3/2023 demonstrates consistent growth due to the increase in combined water sales and management, both in Thailand and overseas, which reached 41 million cubic meters, representing an increase of 13% YoY. As a result, over the first nine months of 2023, the total volume and water sales and management reached 117 million cubic meters, an increase of 5% compared to the previous year. The growth of domestic water sales is primarily attributed to the rise in raw water sales, driven by the water demand from customers in the energy sector.
Meanwhile, water sales in Vietnam, particularly from the Duong River project, have experienced high growth consistently. This is attributed to the economic recovery, increasing water demand in Vietnam, the customer base expansion, and the broader water supply coverage to additional areas. The company foresees that future water sales in Vietnam will continue to expand in line with growing customer demand as more businesses begin their operations in the WHA Industrial Zone- Nghe An Phase 1, and the company's expansion plans in infrastructure business and the industrial development in Vietnam.
Power Business In Q3/2023, the company reported normalized profits from power business of THB 484 million, an increase of 76% QoQ. In the first nine months of 2023, the normalized share of profits from the power business amounted to THB 949 million, an increase of 116% YoY. This is primarily due to the recovery of the normalized share of profits from SSP power business due to the Ft rise, reflecting natural gas cost. As a result, the profits from power sales to industrial customers have consistently improved. At the same time, the share of profits from the GHECO-One power plant in Q3/2023 has also increased. The increase is due to a maintenance shutdown during the same period of last year, which limited its power generation capacity.
As for the solar rooftop business, in Q3/2023, the company recognized a total revenue of THB 108 million, an increase of 44% YoY, due to the increase of solar power production capacity which has started commercial operation date (COD). At the end of Q3/2023, the company's total production capacity from operating solar power projects reached 106 MW. Additionally, they accumulated 179 MW of power purchase agreements from Private Power Purchase Agreement (PPA) projects, resulting in a combined total of 730 MW of power purchase agreements across all types of power plants.
Furthermore, the company is expanding the solar power installation project continuously. Recently, the company has signed a contract with Auto Alliance Thailand Co., Ltd (AAT) to install a solar floating system, with a total capacity of 8 MW, covering an area of 60,000 sq.m. in the WHA Group's Eastern Seaboard Industrial Estate (Rayong). Commercial operations are anticipated to commence in September 2024.
On the same day, the Board of Directors' Meeting approved an interim dividend payment for 2023 of 0.060 baht per share. The XD sign will be posted on 22 November 2023 and the payment date is scheduled for 4 December 2023, respectively. This reflects the company's strong financial position and healthy cash flow, enabling it to pay dividends to shareholders regularly. This is in line with the recent announcement of TRIS, the credit rating agency, which has assigned a credit rating of "A-" with a "stable" outlook. This reflects a positive outlook regarding the revenue growth trends in the utilities and power businesses and the financial stability of the company.
Moreover, WHAUP has recently been chosen as a '2023 Sustainable Stock' in the resource sector for the fourth consecutive year. It has also achieved a "AAA" rating, the highest level in SET ESG Ratings, from the Stock Exchange of Thailand, which reflects a strong commitment to sustainable business operation and the dedication to conducting business towards steady and sustainable growth while addressing social and environmental changes. The company also places significant importance on stakeholders' engagement and operates under ESG principles which reaffirms the company's growth potential in line with the investment plan in utilities (water) and renewable energy businesses, both domestically and internationally, to achieve sustainable growth.
Source: Media Planner Consultant