Global Power Synergy Public Company Limited (GPSC) has reported its 3Q20 consolidated financial statement through the Stock Exchange of Thailand as follows;
GPSC recorded a net profit of 2,574 million baht in 3Q20, increased 188.31% when compared to the same period of last year.
In the quarter, the gross profit of Independent Power Producer (IPP) decreased by THB 442 million. However, the gross profit of Small Power Producer (SPP) increased by THB 269 million mainly due to higher margin from sales of electricity and steam to industrial customers as a result of lower gas price despite adjustment of Ft down in September 2020 and a drop in overall sales volume of electricity and steam.
Meanwhile, the gross profit of Very Small Power Producer (VSPP) and others increased by THB 81 million mainly from the recognition of gross profit from Global Renewable Power Co., Ltd. (GRP) after the acquisition completion on 26 March 2020.
Shares of profit of associates and joint ventures was THB 638 million in Q3/2020, increased by THB 500 million yoy an increase in shares of profits from Xayaburi Power Company Limited (XPCL) by THB 455 million. XPCL started its commercial operation in October 2019.
In 2020, GPSC expects to be able to recognize synergy value from the merger of approximately over THB 500 million mainly from the management of power plants, power and steam network integration and management of Long Term Service Agreements ( to achieve highest efficiency and reduce operating costs.
In addition, the company is also focusing on improvement of the procurement process via active and inventory cost control in order to achieve economies of scales and ( other cost management such as financing costs, insurance costs, working capital management, and organizational cost control. GPSC has evaluated preliminary which is expected to gradually increase from 2019 to 2024 and reach the synergy value of approximately THB 1,600 million in 2024.
In the first 9 months of 2020, GPSC recognized a synergy value of approximately THB 466 million which is from management of electricity and steam supply system to enhance flexibility and efficiency of the system. For instance, GPSC completed steam network integration connecting steam transmission network of GLOW SPP facilities to Rayong Central Utility Plant 3 (CUP 3 The connected network can support steam transmission of approximately 10-30 ton/hour In addition, another part of recognized synergy value is from reduced costs such as SG&A, financing costs, and other costs.