WHA Utilities and Power Public Company Limited (WHAUP) announced its Q2/2022 performance with revenue and normalized share of profit of THB 837 million and normalized net profit of THB 264 million, reflecting the surge in water and power demand. Chief Executive Officer Mr. Somkiat Masunthasuwun eyes to expand investments in utilities (water) and power businesses, both locally and internationally, to add value and achieve the growth of business as planned.
WHA Utilities and Power Public Company Limited (WHAUP) reported to the Stock Exchange of Thailand its Q2/2022 performance, with recognized revenue and normalized share of profit of THB 837 million and normalized net profit of THB 264 million, rising 280% from Q1/2022. The increase in normalized net profit compared to the previous quarter was due mainly to an increase in normalized share of profit from the power business, increasing water sales and management both locally and internationally, and the recognition of revenue from continued commercial operations of solar power projects. However, normalized net profit in Q2/2022 slightly declined by 1% compared to Q2/2021. Meanwhile, net profit in Q2/2022 was recorded at THB 205 million, down 17% from Q2/2021 due to foreign exchange rate impact.
For the financial and operating results of the first six months of 2022, the company recorded a total revenue and normalized share of profit of THB 1,445 million, down 8%, and normalized net profit of THB 333 million, down 27% year-on-year, with a net profit of THB 283 million, down 25% compared to the same period last year.
Utilities Business – Mr. Somkiat Masunthasuwun, Chief Executive Officer of WHA Utilities and Power Public Company Limited (WHAUP), revealed that the overall utilities business in Q2/2022 recorded a total water sales and management both locally and internationally totaling 39 million cubic meters, an increase of 12% from Q2/2021. During the first six months of 2022, the total water sales and management, both locally and internationally, reached 75 million cubic meters, growing 12%, due to increasing demand for water from local businesses, both from existing customers who expanded their production capacity and new customers in power and petrochemical businesses.
The overall demand for value added water products which are demineralized water and premium qualified water increased continuously. In the second half of 2022, two projects are expected to start commercial operations: the premium clarified water project with Gulf TS3&4, with a production capacity of 1.4 million cubic meters per year, scheduled for commercial operations in Q3/2022; and the demineralized water project with Purac (Thailand) Co., Ltd., with a production capacity of 790,000 cubic meters per year, scheduled to start selling water in Q4/2022.
The water business in Vietnam expanded continuously, both from the Duong River Surface Water Plant (SDWTP) and Cua Lo Water Supply. In Q2/2022, the company reached total water sales of 7 million cubic meters, rising 20% from the same period last year. During the first six months of 2022, it recorded total water sales of 13 million cubic meters, rising 22% due to the gradual increase in water demand, following the economic recovery in Vietnam with the easing of the Covid-19 situation.
Power Business – In Q2/2022, the company had normalized share of profit from the power business of THB 247 million, down 10% compared to Q2/2021 due to higher fuel costs in SPP power plants, that increased from the same period last year. The Ft was not adjusted to fully reflect the rising fuel costs, causing the decline of margin from electricity sales to industrial customers. The 14-day maintenance period of Gheco-One power plant also has the effect on lower normalized share of profit. However, the normalized share of profit from power business in Q2/2022 increased by 467% compared to the previous quarter because of lower fuel costs at SPP power plants in Q2, as well as the increase of Ft made for the May-August 2022 period, and better performance from GHECO-One Coal Power Plant. For the first six months of 2022, the company’s normalized share of profit from the power business was THB 290 million, down 35%.
For the renewable energy business, WHAUP continued to expand its investments in solar power plant projects to keep its portfolio growing. In Q2/2022, revenue from private PPA solar business increased by more than 38% compared to the previous quarter with more than 60 MW in operation. At the end of Q2/2022, based on its shareholding equity, WHAUP had a total of 125 MW from solar power projects’ purchase agreements, bringing the cumulative installed capacity in proportion to equity to reach 676 MW equity. At the same time, the company continues expanding its solar power business through various technological advances such as the development of smart energy platforms to trade electricity from solar power among customers within WHA’s industrial estates, or Peer-to-Peer Energy Trading system.
Mr. Somkiat Masunthasuwun also commented on the company’s business expansion plans for the second half of 2022 in utilities (water) and new power businesses, especially overseas. At present, the company is studying investment plans (M&A) in solar power, wind power, and green field projects by applying successful business models in Thailand to further expand investments to drive the company grow in leaps and bounds and maintain stable growth along with WHA Group.
“The company believes that in the second half of this year, the business will continue growing in line with the increasing demand of customers following the easing of the Covid-19 situation. The opening of the country to tourists as well as the government’s economic stimulus policy have signaled economic recovery. These factors have brought positive impact on WHAUP as a utility service provider in industrial estates. For the solar rooftop business, there is a tendency to sign more power purchase agreements in order to achieve the target of 150 MW in cumulative signing contracts this year. If the additional increase of Ft by 68.66 satang for the period from September-December would be applied as ERC’s announcement, it will also be a positive factor for the company,” he said.
In addition, in Q2/2022, the company was highly successful in the offering of debentures totaling THB 2,800 million, including green bonds worth THB 1,800 million. This reflects investor confidence in WHAUP’s business fundamentals, financial strength, as well as its growth potential. It also shows the company’s commitment to conduct business with care for the environment and to strive for sustainable development, which has always been the heart of the company’s business operations.