GULF Expects 50% Increase in 2021 Revenue, Booking ฿2Bn from German Wind PP!

GULF Expects 50% Increase in 2021 Revenue, Booking ฿2Bn from German Wind Power Plant.

Gulf Energy Development Public Company Limited (GULF) expects its revenue to grow 50% next year, supported by the commencement of its new IPPs and the wind power plant in Germany.


Mr. Sarath Ratanavadi, CEO of GULF, stated that the Extraordinary General Meeting of Shareholders, held on August 27, 2020, approved the capital increase of the company by 1,066.65 million shares, which is expected to raise 30 billion baht of funds to support the investment expansion around 110 billion baht and other utility projects in the next 4-5 years.

The CEO revealed that the capital increase would lower GULF’s D/E to 1.7-1.8x, compared to 3x forecasted within 2-3 years due to its bgride loans in the acquisition of the 464.8MW wind power plant in Germany. Thus, the company resolved to a capital increase to strengthen its financial status.

The company expected a successful capital increase as GULF received oversubscriptions and believed that the EPS would increase after the proceeding. GULF also expected an increase of 1,500-2,000 million baht in profit, generated from the aforementioned wind power plant in Germany that is currently running.


Mr. Sarath stated that the company expected its revenue to increase 15% YoY in 2020 and another 50% in 2021 after fully recognizing income from the German wind power plant and the COD of the first unit of IPP GSRC in Chonburi, while the second unit is expecting to run in 2022 with a total production capacity of 2,500MW.

In addition, the IPP GPD in Rayong with a total production capacity of 2,500MW will gradually start the operation in 2023-2024. The Hin Kong Power Plant in Ratchaburi with a total production capacity of 1,400MW will start the operation in 2024-2025. Meanwhile, the 540MW Burapa Power Plant will start the COD in 2027.

The company also showed its interest in three hydro power plants in Laos with a total production capacity of over 2,000MW, in which the deal is expected to complete in 2021.

Currently, GULF has a total production capacity of 7,976MW, in which 6,409MW already started the operation, and will increase to 8,000MW in 2021, and to 10,000MW in 2022.

Lastly, Mr. Sarath noted that the license for LNG Shipper will help reducing the production costs and will further its gas-related business in the future. Meanwhile, GULF’s director Ms. Yupapin Wangviwat, stated that the company also planned to issue a debenture not exceeding 10,000 million baht in 2020 for business expansion and refinance purposes.