WHAUP Reports Strong THB 648 Million 1H/2023 Normalized Profits, Continue Expands Investments in Utilities and Power Business 

WHA Utilities and Power PLC (WHAUP) informed the Stock Exchange of Thailand on its Q2/2023 performance, which recorded a total revenue and normalized share of profits of THB 1,064 million and normalized net profit of THB 419 million, increasing 27% and 59% respectively compared to the same period last year. Net profit, including foreign exchange effects, stood at THB 481 million, an increase of 135% from the year before.


The 1H/2023 earnings, the company reported total revenue and normalized share of profits amounting to THB 1,877 million, an increase of 30%. Meanwhile, normalized net profit rose to THB 648 million, showcasing an increase of 94% year-on-year. Consequently, net profit experienced growth amounting to THB 738 million, representing an 161% increase compared to the previous year. The rise in the normalized net profit derived from the increase of normalized share of profit of power business due to the adjustment of the Ft rate which reflects the natural gas costs and the outstanding cost burden of the Electricity Generating Authority of Thailand (EGAT). This adjustment led to an enhanced profit margin in the power business, particularly in the Small Power Producer (SPP), supplying power to industrial customers. Concurrently, the sales volume of utilities, particularly in Vietnam, continued to experience robust growth.


Chief Executive Officer of WHA Utilities and Power PLC (WHAUP) Mr. Somkiat Masunthasuwun, said, for the utilities business in Q2/2023, the company’s total volume of utilities sales and management both domestic and overseas reached 41 million cubic meters, up 3% from Q2/2022. In the first half of 2023, the total volume of water sales and management, both domestic and overseas, reached 75 million cubic meters, maintaining stability compared to the same period last year. Domestic water sales in Q2/2023 experienced a slight decline of approximately 1% due to maintenance activities undertaken by some major customers, resulting in reduced industrial water demand. However, the company continues to experience consistent and robust growth in the demand for raw water and value-added water products, particularly from power plant customers. Furthermore, in June this year, the construction of the Premium Clarified Water production facility utilizing Wastewater Reclamation at the WHA Eastern Seaboard Industrial Estate 4 (WHA ESIE 4) has been completed. This facility can now supply water to major customers according to a 15-year contract with a volume of 2.9 million cubic meters per year. The total contract value is estimated to be approximately THB 1,800 million.


 Water sales in Vietnam have experienced robust growth due to economic recovery. Consequently, in Q2/2023, the company’s total water sales in Vietnam reached 9 million cubic meters, marking an 23% year-on-year increase. For 1H/2023, total water sales amounted to 15 million cubic meters, reflecting 19% growth.


Power Business: In Q2/2023, the company recognized a normalized share of profit from the power business at THB 276 million, an increase of 12% compared to Q2/2022. Meanwhile, for the 1H/2023, the company recognized a normalized share of profit from the power business at THB 465 million, an increase of 60% year-on-year. This is primarily due to the recovery of a share of profits from the SPP Power Plants, as a result of an increase in the Ft value which reflects the cost of natural gas and the electricity cost burden of the Electricity Generating Authority of Thailand.


In Q2/2023, the company’s solar rooftop business reported total revenue of THB 117 million, an increase of 127% year-on-year. This growth is attributed to the expansion of solar power production capacity in commercial operations. By the end of Q2/2023, the company’s total production capacity from operating solar power projects reached 104 MW.


“The company is actively pursuing expansion in both the utilities and power businesses, both domestic and overseas.” Mr. Masunthasuwun added.  We are committed to achieving sustainable growth and plans to integrate modern technology and innovation into its business operations. For instance, the company aims to expand its renewable energy portfolio, including five solar farm projects, which have been awarded by the Energy Regulatory Commission (ERC). These projects will have a combined installed capacity of 125.4 MW, based on shareholding equity.


In addition, in June of this year, the company successfully offered debentures, worth a total of THB 3,500 million. Of this amount, there was THB 500 million worth of Green Bonds issuance which received a highly positive response from investors, reflecting their confidence in the company’s business fundamentals, financial strength, and growth potential. This achievement also underscores the company’s commitment to do business with environmental concerns and strive towards sustainable development.