CK Power Plc (CKPower), one of Southeast Asia’s largest renewable energy producers, has achieved continuous growth in all aspects of its operations, including revenue, net profit, total assets, and share of profit on investment, said Thanawat Trivisvavet, managing director.
He said the company's debt declined driven by effective financial management. In 2022, the company's total revenue exceeded 10 billion baht for the first time to reach an all-time high of 11.42 billion baht, an increase of 2.08 billion baht or 22.3 % from 9.33 billion baht in 2021.
CKPower’s net profit attributable to equity holders of the company has also seen continuous growth last year to reach an all-time-high of 2.44 billion baht, an increase of 257.2 million baht or 11.8% from the previous year. The growth was driven by an increase of the share of profit from investments in joint ventures and associates by 39.3% from the previous year due to higher average water flow experienced by the Xayaburi Hydroelectric Power Plant (XPCL), which resulted in significant growth in electricity sales volume and financial performance of XPCL compared to the previous year.
On its financial position, as at 31 December 2022, CKPower had total assets of 69.85 billion baht, increased by 1.3% from the previous year. Its total liabilities were 31.91 billion baht which declined by 2.9% from gradual repayments of loans from financial institutions and redemptions of maturing debentures, resulting in an improvement in the net interest-bearing debt to total equity ratio to a healthy level of 0.59 times at the end of 2022.
Mr Thanawat stated that “CKPower’s achievement of strong performance despite facing high energy costs following volatile global energy market situation was the result of CKPower’s strategy to focus on investing in renewable energy and reducing dependency on fossil fuel which has seen high price volatility. We aim to invest only in renewable energy projects across the ASEAN region and to increase the proportion of renewable energy in our portfolio from 89% to 95% by 2024.
While the rising policy interest rates in the US and other countries, including Thailand, has emerged as a key factor that may impact CKPower’s financial performance in 2023, 83% of CKPower’s consolidated long term debt is in Thai Baht currency and carries fixed interest rate. For our associated company, XPCL has a policy to manage interest rate risk using the Interest Rate Swap instruments as well as the issuance of fixed-rate debentures. XPCL continues to closely monitor the interest rate situation and manage its long-term debt to be at a proper level."
In 2022, TRIS Ratings affirmed CKPower’s corporate rating at “A” with a “Stable” outlook. Additionally, the company was included in the 2022 Thailand Sustainability Investment Index for three consecutive years, won the Rising Star Sustainability Awards from the Stock Exchange of Thailand, and received “Excellent” CG Score from Thai Institution of Director Association for five years in a roll. CKPower also received the 2021 ASEAN CG Scorecard (ACGS) award in the category of ASEAN Asset Class from ASEAN Capital Markets Forum (ACMF) and Asian Development Bank (ADB).
“The awards from domestic and international leading organizations are testaments to CKPower’s success in growing its sustainable clean energy and environmentally friendly business. The company remains committed to continuing to build our clean and stable energy business to become a leading renewable energy producer in the region.” said Mr. Thanawat.
CKPower targets to achieve Net Zero GHG Emissions by 2050. In 2022, the renewable energy power plants under CKPower produced 9,921 GWh of clean electricity, equivalent to a reduction of greenhouse gas emissions by 5.0 million tonnes of CO2e per year.
