WHAUP’s 1Q24 Normalized Net Profit Increases by 62%, Pursuing a “Green Logistics” Strategy

WHA Utilities and Power Plc (SET: WHAUP) demonstrated a robust Q1/2024 financial results with the utilities and power businesses boosting total revenue and normalized share of profits to 1,047 million Baht and normalized net profit to 372 million Baht, a remarkable 62% growth year-on-year. Mr. Somkiat Masunthasuwun, CEO, strives to push the Company forward in advancing its power business through the development of innovations and new energy solutions to align with WHA Group’s Green Logistics investment project. It aims to launch 120 EV chargers within this year.

WHA Utilities and Power Public Company Limited or WHAUP informed the Stock Exchange of Thailand on the Q1/2024 financial results that the Company recognized total revenue and normalized share of profits amounting 1,047 million Baht and normalized net profit of 372 million Baht, grew by 29% and 62% respectively compared to the same period last year. Whilst, net profit including the foreign exchange impact recorded at 470 million Baht, a 83% rise year-on-year, mainly attributed by an increase in normalized share of profit from the power business notably from the GHECO-One power plant from higher availability payment resulting from lower maintenance shutdown. Furthermore, the SPP Power business benefited from the lower natural gas costs compared to the same period of the previous year, resulting in a greater margin of power sales to industrial customers. Meanwhile, water sales volume in both Thailand and Vietnam continued to grow steadily.

Mr. Somkiat Masunthasuwun, Chief Executive Officer of WHA Utilities and Power Plc (“WHAUP”), reveals that the total volume of water sales and water management in the utilities business both domestic and overseas, reaching 40 million cubic meters in the first quarter of 2024, leading to a 16% increase year-on-year. Domestic water sales and water management rose by 14% driven by growth in all product categories, particularly raw water, due to higher demand from power and petrochemical sectors. Similarly, the sales of value-added water products also increased as a result of growing water demand from new customers who have been operating commercially since the middle of last year.

For the overseas water business, it continued to expand in Q1/2024, with total equity water volume was 8 million cubic meters, up 23% year-on-year, primarily from an increase in water sales volume from the Duong River project backed by higher water demand. Besides, the Project had seen a rise in water tariff, resulting in a share of profit from the Project at 18 million Baht in Q1/2024 compared to a share of losses of 11 million Baht in the same period last year.

WHAUP relentlessly continues to build and expand its water business. Recently, WHAUP has signed a service contract to provide Premium Clarified Water product, with an annual production capacity of 3.5 million cubic meters, to PTT Global Chemical Plc, in WHA Eastern Industrial Estate (Map Ta Phut). It is expected the new water project will start a commercial operation in the third quarter of 2024.

The power business in Q1/2024, the Company had the normalized share of profit from the power business totaling 301 million Baht, marking a 59% year-on-year increase. This growth primarily resulted from the recognition of higher profits from the GHECO-One power plant, due to the lower maintenance shutdown which contributed to higher availability payment. The share of profit from the SPP Power business also increased, driven by the lower natural gas costs compared to the same period last year and resulted in higher profit from power sales to industrial users.

Moving onto the glance of solar power business in Q1/2024, the Company signed additional Private Power Purchase Agreements (PPAs) projects totaling 15 contracts, aggregating the total installed capacity of 59 megawatts. As of ending 1st quarter of 2024, the Company has Private PPA for solar rooftop projects with a total cumulative contracted capacity of 242 MW, of which 125 MW already operate. For solar farm in FiT scheme, the Company has been awarded as an operator of five solar power projects with a total equity capacity of 125.4 MW. Currently, the Company successfully signed power purchase agreements of 4 projects with the equity capacity of 85 MW with EGAT and PEA. For the last remaining project, It is anticipated to be completed in the near future. Overall, the Company has a total contracted equity capacity of 812 MW across all types of power plants. It targets to reach more signings of power purchase agreements with equity capacity totaling 1,000 MW by the end of this year.

Together with this, the Company has a focus on furthering the clean energy business through the development of new energy innovations and solutions, such as the openings of EV chargers to align with WHA Group’s comprehensive Green Logistics investment plan. The Company aims to expand the EV business to 120 chargers by the end of this year.

Mr. Somkiat said that WHAUP strives to explore investment opportunities in various landscapes of utilities and power businesses, both domestically and internationally. This strategy is to foster sustainable growth for business inside and outside WHA Group’s industrial estates. Furthermore, the Company has a strong commitment to achieve  Net-zero greenhouse gas emissions by 2050 to ensure sustainability growth alongside the good responsibilities of  environmental, social and corporate governance.

Apart from that, the Annual General shareholders’ Meeting on April 18, 2024, had a resolution to approve a total dividend payment of 0.2525 Baht per share for the 2023 performance. This includes an interim dividend of 0.0600 Baht per share which was already paid to shareholders on December 4, 2023, and the additional dividend of 0.1925 Baht per share scheduled on May 15, 2024 which underlines WHAUP’s strong financial position and continuous growth in performance.