Banpu Power Public Company Limited (SET: BPP) has reported an extraordinary start to 2026, with net profit skyrocketing to THB 5,877 million, a staggering 924% increase compared to THB 574 million in the same period last year. This surge was primarily driven by a significant one-time gain from the strategic restructuring of its U.S. operations.
The headline profit was bolstered by a pre-tax gain of THB 6,183 million (THB 4,653 million after-tax) from the sale of a 25% interest in BKV-BPP Power LLC (Power JV). However, BPP’s core performance also showed remarkable strength; excluding this one-time item, normalized net profit reached THB 1,224 million, marking a 113% year-on-year improvement.
In contrast to the bottom-line growth, consolidated sales revenue for 1Q26 fell by 28% to THB 5,093 million. This decline is largely attributed to the deconsolidation of the Power JV, which transitioned from a subsidiary to an associate in late January 2026. As a result, BPP recognized U.S. power sales for only one month this quarter, whereas 1Q25 included a full three months. Regional performance in China also saw a decrease in sales of THB 271 million due to lower demand for steam and electricity.
Operating margins improved as the cost of sales dropped 34% to THB 4,177 million. This was aided by the U.S. deconsolidation and a significant 11% reduction in average coal costs for China-based plants. Furthermore, BPP saw a 41% increase in profit sharing from associates and joint ventures, totaling THB 706 million. Key contributors included the SLG power plant in China—benefiting from favorable coal contracts—and the Battery Energy Storage System (BESS) business in Japan.
While income tax expenses jumped to THB 1,732 million due to the asset sale, BPP significantly reduced its financial costs by 52% to THB 309 million. This quarter highlights BPP’s successful pivot toward a more resilient, high-margin portfolio.
