CGS International Securities (Thailand) wrote that Gulf Development Public Company Limited (SET: GULF) reported a 3Q26 net profit of THB 9.3 billion, representing a year-on-year increase of 28% and a quarter-on-quarter decrease of 25%. The company’s performance slightly exceeded expectations, primarily due to lower-than-expected SG&A expenses and better-than-anticipated profits from associates and joint ventures.
Core profit for the quarter stood at THB 9 billion, up 24% year-on-year but down 27% from the previous quarter. This was largely driven by increased contributions from gas-fired power plants, the addition of new solar and solar+BESS projects, stronger LNG sales and optimization gains, and improved earnings from key associates. Additionally, GULF recorded a THB 244 million gain from foreign exchange and derivatives.
Operating revenue reached THB 52.8 billion, a robust increase of 75% year-on-year and 5% quarter-on-quarter. Gas-fired power revenue grew 45% to THB 33.5 billion, renewable revenue was up 59% to THB 1.7 billion, and LNG revenue surged by 179% to THB 8.9 billion.
The company saw its share of profit from associates and JVs rise to THB 6.8 billion, a 22% year-on-year and 12% quarter-on-quarter increase, backed by stronger mobile and broadband earnings from ADVANC, higher Capacity Payment revenue from the U.S. Jackson, and better contributions from Gulf Gunkul.
Despite a decline in earnings quarter-on-quarter—partly due to plant maintenance outages, lower LNG optimization gains, and reduced dividend income from KBANK—underlying operating momentum is expected to remain solid across GULF’s core businesses.
The company’s balance sheet remained strong, with a net interest-bearing debt-to-equity ratio at 1.02x, well below the company’s covenant limit of 3.5x, ensuring adequate capacity for future growth investments. As a result, CGSI reiterated its ‘Add’ rating on GULF, with a THB 75.00 target price.
