Two Income Sources to Feed BEM amid Low Traffic from Lockdown

BEM is fed by its shareholding stake in TTW and CKP during the Covid-19 hardship that diminishes daily traffic to its low.

The new lockdown measures to curb Covid-19 infection rate in Thailand surely has a huge impact on hotels and department stores that have to close down to comply with the order. Aside from the services industry, a transportation operator like Bangkok Expressway and Metro Public Company Limited (BEM) is another company that was affected by the stringent measures.


BEM’s core business is to operate expressways and manage the Mass Rapid Transit System, largely in Bangkok and its surrounding areas, which are labelled as danger zones due to high infection rate and confirmed cases in the area.


The market expected BEM’s 2Q21 earnings at 110 million baht, representing a decrease of 28% YoY and 64% QoQ, the lowest in 20 quarters of the company’s history. Meanwhile, its revenue is estimated at 2,490 million baht in 2Q21, representing a 20% decrease in YoY and stable QoQ.

The market also estimated traffic on the expressways in 2Q21 to come in at 770,000 units per day, a 21% decrease QoQ and 4% YoY. Meanwhile, traffic for the MRT is estimated at 120,000 riders per day, representing a 44% decrease in QoQ and 11% YoY.


Luckily, BEM has two other sources of income, which are TTW Public Company Limited (TTW) with a 18.47% of shareholding stake and CK Power Public Company Limited (CKP) with a 17.59% of shareholding stake.

The market expected TTW to record a net profit of 842 million baht in 2Q21, showing a better performance in both YoY and QoQ. Meanwhile, earnings of CKP are estimated at 700-900 million baht as higher volume of rain in 2Q should benefit the operation of NN2 and Xayaburi Power Plant.

And BEM will recognize profit from both ways in the proportion of its shareholding stake.


However, the worst has yet to come as the full lockdown measure was just implemented in the third quarter, which will tremendously lower BEM’s traffic on the road and rapid transit system.

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