B.Grimm Power Highlights Robust Growth in 2023 Leading Energy Sector with Expanded Production Capacity

Dr. Harald Link, Chairman of B.Grimm and President of B.Grimm Power Public Company Limited (BGRIM), has unveiled the outstanding performance of the company in 2023, characterized by a significant recovery. Normalized Net Profit (NNP) surged to 2,056 million baht, a notable increase from 375 million baht in the previous year, which was severely impacted by the gas price crisis. This remarkable turnaround can be credited to several pivotal factors. Firstly, production capacity from operational projects increased by 667 megawatts. Additionally, there was a resurgence in profit margins per unit between the Ft electricity price and natural gas costs. Moreover, there was a 1.2% uptick in the amount of electricity sold to industrial customers, and a 2.5% reduction in the volume of natural gas use per unit, achieved through continuous improvement in power plant efficiency.

In 2023, B.Grimm Power achieved a significant milestone by expanding our production capacity to 4 gigawatts through the successful commercial operation of several planned power plants. Additionally, strategic investments were made in key markets such as the Republic of Korea and Malaysia, further solidifying our position in driving collaborative development within the regional energy sector.

A significant milestone in 2023 was the advancement of B.Grimm Power’s “Greenleap: Global and Green” strategy, underscoring our steadfast commitment to sustainable development. Presently, B.Grimm Power is actively engaged in multiple renewable energy projects, further solidifying our position as a leader in the global renewable energy sector. Currently, we have a number of projects under development and construction with secured Power Purchase Agreements (PPAs) totaling 698 megawatts. Additionally, there is ongoing development of wind power projects exceeding 1 gigawatt in the Republic of Korea, a solar power initiative ranging from 250 to 300 megawatts in the Republic of Italy, and a renewable energy project under the Feed-in Tariff (FiT) program in Thailand totaling 339.3 megawatts. Furthermore, B.Grimm Power is actively pursuing renewable energy projects in several other countries, including the Philippines, Cambodia, Greece, Saudi Arabia, and the United Arab Emirates. This comprehensive approach aligns with the company’s long-term operating strategy aimed at fostering diverse investments and establishing leadership in the global renewable energy arena.

B.Grimm Power is committed to fostering the growth of the nation’s industrial sector. In 2023, we successfully added new industrial users (IU) totaling 52.1 megawatts, as planned. This achievement stems from delivering responsive services and providing renewable energy production certificates (REC) to customers. The company is dedicated to advancing regional industrial development for a sustainable and environmentally friendly future.

In 2023, B.Grimm Power was honored with three prestigious sustainability recognitions. we earned the highest “AAA” rating from SET ESG Ratings (formerly known as Thailand Sustainability Investment or THSI) and secured a place in The Sustainability Yearbook by S&P Global for the third consecutive year, achieving a top 10% global ranking in the electricity utilities industry in the 2024 yearbook. Additionally, we maintained our standing as a member of the FTSE4Good Index. These acknowledgments underscore our steadfast commitment to doing business with compassion and responsibility towards the economy, society, and the environment. Furthermore, B.Grimm Power places significant emphasis on ethical governance, as demonstrated by our ongoing certification as a member of the Thai Private Sector Collective Action Coalition against Corruption (CAC) for the third consecutive term, highlighting our unwavering dedication to transparent operations and robust corporate governance.

For the direction in 2024, Dr. Harald Link outlined plans to expand investments in projects with low greenhouse gas emissions, both domestically and globally. The focus is on advancing green energy initiatives by participating in the government’s upcoming round of electricity procurement bids, adhering to regulations that mandate sourcing electricity from renewable energy under the Feed-in Tariff (FiT) program.  The strategy involves proceeding with the commercial operation of power plant projects in Thailand, Japan, and the Republic of Korea as outlined. Furthermore, there’s a target to onboard new industrial users (IU) with a connected load of 50-60 megawatts through electricity purchase agreements, reinforcing and affirming B.Grimm Power’s leadership position in the industrial sector.

In the long run, B.Grimm Power strives to emerge as a global leader in energy production. By 2030, the goal is to expand the portfolio to a capacity of 10,000 megawatts as per the power purchase agreements and achieve the milestone of reaching Net Zero Carbon Emissions by 2050.

B.Grimm Power has declared a dividend of 0.36 baht per share for the year 2023. This dividend comprises an interim dividend of 0.18 baht per share and the final dividend of 0.18 baht per share, with the dividend payout rate remaining at 45% of Normalised Net Profit. The ex-dividend (XD) date is scheduled for March 13, 2024, and the dividend payment date is slated for May 10, 2024. Approval of this dividend will be sought at the 2024 Annual General Meeting of Shareholders.