Message from the President
Marking its 24th founding anniversary in 2019, B.Grimm Power Public Company Limited continued power generation and steam production in support of the industrial sector and the regional economy, underlined by the business principle of compassion for secure and sustainable growth with responsibility for the economy, society, and the environment. Our emphasis has been on professional management underlined throughout the years by good governance along with a Code of Conduct. We take pride in this year’s Thailand Sustainability Investment (THSI) Award for the second year in a row and a Platinum Award Excellence in ESG, presented at The Asset ESG Corporate Awards 2019 ceremony in Hong Kong. B.Grimm Power has grown investment in renewable energy, pursuing 30% of the total capacity by spearheading investment in solar power generation in Vietnam with the single largest project among ASEAN countries, whose construction was completed under the budget in less than one year. As for our preparation for industrial transformation, we have joined hands with several international partners, including LG Chem, Siemens, and PetroVietnam Power in making strides toward sustainable growth.
Performance wise, B.Grimm Power posted Baht 44.132 billion this year, a rise of 20.6% over last year. Our consolidated net profit amounted to Baht 3.977 billion, whereas our net profit-owner of the parent came to Baht 2.331 billion, 25.1% over last year. We attribute this performance to the dedication and collaboration of the management and the workforce with the staunch support of all parties in all sectors. We currently operate 46 projects totalling 2,896 megawatts (MW), equivalent to 40% growth over last year, with the acquisition of the SPP 1 business to grow our strategic business to the Map Ta Phut area and the commercial operation launch of four renewable power projects, namely DT 1&2 and Phuyen TTP in Vietnam, the Nam Che 1 hydropower plant in Lao PDR, and an industrial waste-to-energy plant in Thailand. In addition, several other projects are under construction and development to grow our installed capacity to 3,424 MW by 2025. In November 2019 we successfully offered to the public perpetual subordinated bonds worth Baht 8 billion, designed to restructure our capital while growing our investment and routine operation. This move lowered the net interestbearing debt to equity ratio of the consolidated financial statements from 1.5 at year-end 2018 to 1.0 a year later.
In managing our resources, we have consistently valued optimal resource consumption through systematic, standardised environmental management while cultivating such awareness among our workforce and related parties. Concerning water management, we have consistently abided by the principle of optimal management together with conserving water resources under the sustainability approach, with conservation management planning undertaken with various industrial estates. The bulk of the water consumed in combined cycle power plants is recycled water or water derived from industrial wastewater treatment, ensuring that we can adequately and continuously manage water supply even amid the drought of 2020.
As for preparation for economic transformation, over 71% of our revenue is immune to economic cycles: 65% from our sale to the Electricity Generating Authority of Thailand (EGAT), with take-or-pay clauses of power purchase agreements (PPAs) and 6% from governmentsupported renewable power plants both in Thailand and abroad. Concerning services provided to industrial users, security arises from the diversity of our customer groups. To elaborate, this year’s power consumption by the industrial sector grew 1.3%, of which the packaging and air-conditioner manufacturing groups have significantly consumed more power as of early 2020. New customers have also continually enlisted for a total of 31 MW in the first nine months of 2020. To this end, we have prepared close monitoring and analysis of these customers’ businesses; besides, there exists massive demand for stable power supply by many industrial plants around our power plants. In fact, today our customers number only 130 out of some 1,500 industrial plants in these industrial estates.
On behalf of the Board, the management, and all employees, I would therefore like to express my heartfelt appreciation to the shareholders, investors, and stakeholders for their consistent trust in and support to B.Grimm Power’s undertaking all along. Please rest assured that we will remain committed to developing B.Grimm Power into an integral part of community, national, and regional development in a secure and sustainable manner. At all times, our moves will be bound by doing business with compassion for the development of civilisation in harmony with nature, which has been B.Grimm’s philosophy for over 141 years.