BGRIM Maintains Positive View on Gas Outlook despite Plummeting Share Prices

After a sharp decline in share prices, Maybank Securities (Thailand) (MST) reported insights following a conference call with B.Grimm Power Public Company Limited (SET: BGRIM).

Thai power generator stocks experienced a downward trend on Friday, with BGRIM being the worst performer in the energy segment, closing at THB21.10 per share, down 7.05%. This drop was attributed to worries about escalating LNG prices impacting the pool gas price.

MST highlighted BGRIM management’s optimistic stance on gas prices, noting that current levels are considered reasonable, and gas field production in the Erawan area exceeds 800mmscfd. Additionally, the company stands to benefit from lower SPP margins from PTT and a single pool price policy.

Regarding the auto industry, BGRIM remains confident in the demand from its auto part customers, comprising 10% of total revenue. The company plans to expand its capacity to cater to future demands, particularly in high-tech sectors like data centers and semiconductors.

BGRIM is gearing up for the upcoming 3.6GW renewable energy bidding and other bids related to the PDP2024 draft. The company aims to achieve a 10GW capacity by 2030 through renewable energy expansions.

With projects slated for completion in the next four years, BGRIM expressed confidence in financing development using various instruments such as project financing, debentures, and asset monetization.