Banpu Power Reports Slight Decline in 2023 Earnings over Higher Loss on Derivatives

Banpu Power Public Company Limited (SET: BPP) has announced its 2023 consolidated financial statement through the Stock Exchange of Thailand as follows;

Year 2023 2022
Net Profit (Loss)
Million Baht
5,319.20 5,738.68
Earning Per Share
1.7450 1.8830
% Change -7.31

BPP reported a net profit of THB 5,319 million in 2023, decreased 7.31% from a net profit of THB 5,738 million in 2022. This also included an unrealized loss on financial derivatives THB 807 million based on equity, and gain on fair value remeasurement of investment in battery business THB 1,336 million.

Excluding these items, the group reported higher net profit compared to prior year, primarily from a recognition of operating profit from Temple II gas-fired power plant, and an increase in gross profit margin. This was a result of higher electricity demand driven by heat wave impacts across Texas during 3Q2023 and better operating performance from CHP power plant due to a lower coal cost compared to prior year.

Meanwhile, SLG power plant reported profits continually from higher sales volume and entering a long-term coal supply contract at a favorable price. This included higher recognition of profit sharing from BLCP that operated efficiently. However, there was a decrease in profit sharing recognition from HPC power plant that was consequential impact from the plan and unplan maintenance shutdown, a decrease in profit sharing from Nakoso power plant due to maintenance shutdown to improve efficiency and stability of the power plant in the long run, and an increase in finance costs supported business expansion in USA.

In addition, the company announced a dividend payment of THB0.40 per share to be paid on 26 April 2024. The ex-dividend date is 5 April 2024.