GULF’s Core Profit Jumps 33%, Booking ฿295Mn of Div. from INTUCH while Fuel Cost Drops

GULF’s Core Profit Jumps 33%, Booking ฿295Mn of Dividend from INTUCH while Fuel Cost Drops.

Gulf Energy Development Public Company Limited (GULF) has reported its 3Q20 consolidated financial statement through the Stock Exchange of Thailand as follows;

GULF reported a core profit of 1,325 million baht in 3Q20, increased 33% YoY and 34.1% QoQ. The increase in core profit was due to the followings;

1) Dividend income in 3Q20 was THB 360 million, consisting of THB 295 million from INTUCH, THB 62 million from SPCG and THB 3 million from EDL Gen, an increase from THB 43 million compared to the same period last year and an increase of THB 81 million compared to the previous quarter which consisted of dividends from SPCG only.

2) Fuel cost which decreased from the drop in average price of natural gas to 235.22 THB/mmbtu in 3Q20 from 268.67 THB/mmbtu in 3Q19 and from 261.41 THB/mmbtu in 2Q20, a drop of 14.2% YoY and 10.0% QoQ, respectively, while Ft rate reduced slightly from (0.1160) THB/kilowatt-hour in the same period last year and in the previous quarter to (0.1188) THB/kilowatt-hour or a drop of 2.14%. This resulted in an improved gross profit margin (sales) to 25.9% from 24.1% in the same period last year and from 23.1% in the previous quarter.

3) Share of profit from GJP excluding foreign exchange gain (loss) increased by 30.9% YoY and 14.8% QoQ. In addition to the higher gross profit margin (sales), the Company also recorded higher volume of electricity sold to EGAT by the 7 SPPs and higher volume of electricity, steam, and chilled water sold to industrial customers after the COVID-19 situation improved.

4) Profit from SPPs under GMP improved QoQ as revenue from sales of electricity and steam to industrial customers gradually increased since June 2020 but decreased YoY due to the impact from planned maintenance shutdown (B-inspection) of GTS2 power project, as well as increased profit from GTN1 & GTN2 solar power projects in Vietnam, and from GCG biomass power project.


However, the company recorded a net profit of 970 million baht in 3Q20. Although core profit improved significantly, net profit declined due to unrealized FX loss of THB 355 million recorded in this quarter compared to a gain on exchange rate of THB 89 million in 3Q19 and a gain on exchange rate of THB 892 million in 2Q20, which resulted in the overall decrease of the company’s net profit.

Nonetheless, the recording of such gain (loss) on exchange rate is resulted from the change in the USD, and EUR currency from BKR2 investment, and is an accounting transaction which has no impact on the cash flow and performance of the Group at all.