Year 2009
August
Glow profit more than doubles in Q2
Industrial sales back at their normal levels
By: POST REPORTERS
The power producer Glow Group more than doubled its net profit in the second quarter on improved
demand from the industrial sector, and will pay an interim dividend to shareholders of 0.70 baht a share,
CEO Esa Heiskanen said yesterday.
Consolidated net profit rose to 1.55 billion baht from 737 million in the second quarter last year. First-half
profit was 2.02 billion baht (1.38 baht a share), down from 2.16 billion (1.48 baht a share) the year before,
on revenues of 17.24 billion. Earnings before interest, tax, depreciation and amortisation (EBITDA) were
3.66 billion baht for the first half.
"A recovery of our industrial customers' demand, lower fuel costs and stable electricity tariffs were all key
machines driving our profit to rise," said Mr Heiskanen.
Industrial-customer sales volume continued to improve from the first quarter and has returned to normal
levels, with hopes of new demand.
"Our profit margin from industrial customer sales also continues to improve as gas and coal costs have
gradually reduced since the first quarter,' said Mr Heiskanen.
The price of coal, the company's main fuel, plummeted in the quarter to June 30 to about US$70 a tonne
compared with $125, at the same time last year.
The company is also expecting a continuing recovery of profit margins in the cogeneration business as a
result of falling fuel prices.
Reflecting its improving results, Glow will pay an interim dividend of 0.70 baht a share on first-half results,
compared with 0.60 baht last year. The payment will be made on Sept 11, with the share register to receive
the dividend closed on Aug 27.
"At the beginning of the year, we were very concerned with our industrial customers' sales volume.
Fortunately demand has continued to improve since the first quarter and has now returned to normal levels,"
said Mr Heiskanen.
In addition to an improving industrial sector, The company's new 115- megawatt coal-fired power plant is
scheduled to come online by the end of the year and will contribute to higher earnings in 2010.
For the next two years, Glow will continue to add capacity in Thailand with the highest organic growth in the
industry of 1,300 MW or 67%.
Sicco Securities (SSEC) forecast earlier that Glow should record strong EBITDA of 7 billion baht this year
on the faster-than-expected industrial sector recovery.
SSEC also foresees a stronger result in the second half on falling coal costs and continued expansion of
power generation capacity.
As an affiliate of the French power group GDF Suez Energy International, Glow has total power generation
capacity of 1,775 MW and 967 tonnes of steam per hour.
Its new capacity coming online from 2009 to 2012 includes 115 MW of cogeneration, 382 MW of gas-fired
power and 660 MW of coal-fired power.
GLOW shares closed yesterday on the Stock Exchange of Thailand at 31.25 baht, up 75 satang, in trade
worth 70.65 million baht.
This article is written by Bangkok Post
14/08/2009
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