SET-listed Gulf Energy Development, Thailand's biggest private power producer by market value, has increased its capital spending by 20% to 120 billion baht as it plans to acquire more new assets in the clean energy sector.
The budget is slated for allocation between 2022 and 2026.
Chief financial officer Yupapin Wangviwat said Gulf is preparing to negotiate three asset acquisition deals, with details to be unveiled later this year. The previous capital expenditure was set at 100 billion baht.
Ms Yupapin said the increase in capital spending will not lead to overspending of the budget because of the company's low debt burden, with the debt-to-equity ratio standing at around 1.8 times.
Up to 60% of the capital expenditure will go to clean energy business, she said. Some 20% is needed to support fossil fuel-fired power plants, while the remaining 20% will be allocated for gas trading business, digital asset investment and infrastructure development projects.
Ms Yupapin said the company categorises gas, digital asset and infrastructure development as S-curve businesses, which promise rapid growth.
Gulf expects total revenue in 2022 to grow by 80%, up from 52.9 billion baht last year. She attributed the increase to the operation of the company's new large power plants and earnings from newly acquired assets.
In the clean energy sector, Gulf expects to sign a power purchase agreement with the Laos government this year to develop and operate two hydropower plants -- the 770-megawatt Pak Lay and 912MW Pak Beng plants -- expected to export electricity to Thailand.
Gulf was also awarded contracts by authorities to operate and maintain the M6 and M81 motorways, and develop infrastructure for the third-phase Laem Chabang deep-water port and third-phase Map Ta Phut deep-water port projects. Gulf teamed up with Advanced Info Service, the mobile industry market leader in terms of subscribers, to install solar power modules at 30,000 mobile phone signal towers nationwide within five years.
