GPSC Moves Forward with Growth Plan to Focus on Innovative Energy Solution

GPSC reported 2023 net profits of THB 3,694 million due to efficiency improvement in production management, OPEX Saving Program along with synergy operations. The company is seeking opportunities to expand the investment portfolio in energy innovation, both domestically and overseas, and increase the proportion of renewable energy to tackle evolving world’s energy trends.

Mr. Worawat Pitayasiri, President and Chief Executive Officer of Global Power Synergy Public Company Limited (SET: GPSC), the innovative power flagship of PTT Group, revealed about the performance in 2023 that the company recognized the total net profit of 3,694 million baht, an increase of 2,803 million baht or 314% from the previous year thanks to optimization of production efficiency management which resulted in plants achieving highest cost efficiency. Therefore, the gross profit of the independent power producers (IPP) remained satisfied. In addition, the small power producers (SPP)’s gross profit has continued rising thanks to the electricity prices that could better reflect the energy prices from 2022. This has widened the margin from selling electricity to its industrial customers. In addition, this year the company has focused on controlling operational expenses through the OPEX Saving Program. Furthermore, the commitment to expansion initiatives has enabled the company to realize profit contribution from the solar platform business from Avaada Energy Private Limited (AEPL) in India amounting to over THB 300 million, from additional COD projects. Moreover, AEPL successfully won bids exceeding 5 GW, which will be gradually in commercial operations in the coming years.

The company has also given importance to the management and optimization plan, in order to enhance the efficiency of the production process and the administration of power plant operations in Thailand, which is our core business, based on merit order. This is all to manage the production costs for maximum efficiency focusing on the synergy operations. 

In reference to the performance of Q4/2023, compared to the same period of last year (YoY), the total revenue was 18,319 million baht whereas the total net profit was 478 million baht, increased by 209%, thanks to the main factors of electricity tariff that could better reflect the energy costs, and increased electricity sales to the industrial customers. Furthermore, the company recognized the revenue from the insurance claims for GHECO-One power plant and Sriracha Power plant. However, once compared to Q3/2023 (QoQ), the net profit fell by 73% mainly due to the decline of SPP’s performance, the decline in sales volume of electricity and steam distributed to some industrial customers, who had maintenance shutdowns in the 4th quarter of 2023, and the dividend received and shares of profit of associates and joint ventures dropped due to seasonal factor. Nevertheless, the company received the increased share of profits from higher electricity sales  from the full-quarter operation of 12 wind turbines of the offshore wind farm Changfang and Xidao in Taiwan (CFXD).

Mr. Worawat said GPSC has always been seeking opportunities to develop the clean energy business for sustainable growth to tackle evolving world’s energy trends. The company successfully secured several bids from the renewable energy projects in cooperation with the Avaada Group in India aligned with the target expansion plan. As a consequence, GPSC is able to expand the proportion of its renewable energy portfolio faster than expected.  In 2023, AEPL won the bidding of power projects with the capacity of 5,161 MW, resulting in AEPL’s capacity of 9,525 MW with 3,990 in operation and the rest are expected to operate in 2024-2026.

Regarding the progress in the development of GPSC’s energy technology and innovation, NV Gotion Company Limited (NV Gotion), a joint investment company between Nuovo Plus Co., Ltd. (NUOVO PLUS) and Gotion Singapore Pte. Ltd. (Gotion), opened the battery plant and launched of battery products at Siam Eastern Industrial Park 2, Pluakdang District, Rayong Province. Thereby, NV Gotion imports, assembles, and sells battery modules and battery packs for energy storage and electric vehicles (EV). At present, the company is ready to deliver the high-quality lithium-ion batteries to the market, and it is determined to expand its capacity to 8 GWh per year in the future, in line with the company’s strategy to support the battery business and future energy investment strategies of the PTT Group. 

In 2024, we continued monitoring the risk factors arising from the uncertain geopolitical situation in the Middle East, which may influence global energy prices. Nevertheless, the company has prepared to expand its clean energy and other innovative businesses, both domestically and abroad. This includes pursuing opportunities and furthering developments in battery pack and cell, Energy Storage Systems (ESS), as well as Energy Management Systems, in line with the company’s sustainable growth strategy.