Gulf Energy Development Plc. (GULF) reported the financial
results
for FY2023 with a total revenue of THB 116,951 million, rising from THB 95,076 million or an increase of
23% YoY. Core profit also rose, reaching THB 15,644 million, an increase from THB 12,098 million in
2022.
The growth was primarily driven by an increased power generation capacity following the commercial
operation of Gulf Pluak Daeng (GPD) units 1 and 2, an IPP power project under IPD group with a combined
installed capacity of 1,325 MW, which had an average load factor of 90% in 2023. Additionally, in 2023,
the DIPWP project in Oman commenced full operation of the entire 326 MW since the beginning of 2023,
while the Mekong offshore wind project in Vietnam achieved full commercial operation of the entire 128
MW in July 2023. GULF1’s solar rooftop projects have also gradually commenced commercial operation,
reaching 110 MW in 2023. Moreover, GSRC, an IPP power project under the IPD group, recognized full-year
revenue after all four units reached full operation, totaling 2,650 MW, since the end of 2022.
Furthermore, the energy business reported robust performance, with the 12 SPP projects under GMP group
recording a surge in core profit, which increased from THB 1,435 million in 2022 to THB 3,097 million in
2023, a remarkable THB 1,661 million or 116% YoY increase. The growth was primarily driven by the higher
gross profit margin from electricity sales to industrial users as a result of the lower average gas
cost, which fell from 494.8 THB/MMBtu in 2022 to 385.4 THB/MMBtu in 2023, while the average Ft rate
increased from 0.40 THB/kWh in 2022 to 0.89 THB/kWh in 2023. In addition, the three wind power projects
under Gulf Gunkul Corporation, in which GULF made the investment in July 2022, saw a 174% increase in
share of core profit, rising from THB 324 million in 2022 to THB 889 million in 2023 as a result of the
full-year performance recognition. Meanwhile, the Gulf Chana Green (GCG) biomass power project reported
a core profit increase from THB 170 million in 2022 to THB 263 million in 2023, representing a 55%
increase. This growth was attributed to the lower average wood cost from 1,036 THB/ton in 2022 to 869
THB/ton in 2023, while the average wholesale Ft rate increased from 0.25 THB/kWh in 2022 to 0.72 THB/kWh
in 2023. Nonetheless, the aforementioned positive factors were partially offset by a lower share of
profit from the Borkum Riffgrund 2 (BKR2) offshore wind project in Germany following the shareholding
reduction from 50.00% to 24.99% as GULF divested 25.01% stake to Keppel Group in December 2022.
In 2023, GULF realized a share of core profit from PTT NGD of THB 396 million, a recovery from a loss of
THB 128 million in 2022, due to a significant decrease in average natural gas cost. In addition, GULF
also recognized a share of core profit of THB 241 million from Thai Tank Terminal, a public terminal
management project for handling liquid products, following the investment in the project in December
2022.
Moreover, GULF recognized a share of core profit from the investment in INTUCH of THB 6,101 million in
2023, marking an increase of THB 1,445 million or 31% YoY increase from THB 4,656 million in 2022,
attributed to the strong performance of AIS.
EBITDA for the year 2023 was THB 35,370 million, a 21% increase from THB 29,138 million in 2022. Net
profit attributable to the parent company, which considers the impact of the FX rate, was THB 14,858
million, an increase of 30% from THB 11,418 million in 2022.
As of December 31, 2023, GULF recorded total assets of THB 459,514 million, total liabilities of THB
315,410 million and shareholders’ equity of THB 144,104 million, with a net interest-bearing debt to
equity ratio of 1.69 times, increasing from 1.56 times as of December 31, 2022, due to the issuance of
debentures totaling THB 35,000 million in 2023, together with loan drawdowns for the GDP project from
financial institutions.
Ms. Yupapin Wangviwat, Deputy Chief Executive Officer and Chief Financial Officer, GULF,
revealed, “In 2024, the
total revenue is anticipated to increase by approximately 25-30% from 2023, which will be driven by the
projects that are scheduled for commercial operation. The gas-fired GPD project units 3 and 4, with a
total installed capacity of 1,325 MW, are scheduled to commence commercial operation in March and
October 2024, respectively. The gas-fired Hin Kong Power project unit 1, with an installed capacity of
770 MW, is scheduled to commence commercial operation in March 2024. In addition, GULF1’s solar rooftop
projects are expected to gradually commence commercial operation of an additional 120 MW this year,
while five domestic solar farm and domestic solar farm with battery energy storage systems (Solar BESS)
projects, with a total installed capacity of 532 MW, are scheduled to gradually commence commercial
operation by the end of 2024.”
Ms. Yupapin added, “GULF recognizes the importance of decarbonization,
which is in line with the current government’s policy to transition towards clean energy. In 2023, GULF
entered into Power Purchase Agreements with EGAT to develop and operate 24 solar farms and solar BESS
projects, with a total installed capacity of 2,396 MW and scheduled to commence commercial operation
between 2024-2029. Additionally, GULF also entered into Power Purchase Agreements with PEA for the
development of two industrial waste-to-energy projects with a total installed capacity of 20 MW and a
scheduled commercial operation date in 2026. Currently, GULF has a committed installed capacity from
renewable energy of 8,211 MW and plans to expand addition capacity of at least 3,000 MW through various
renewable energy projects in order to achieve the target to increase the proportion of renewable energy
to 40% by 2035. These projects include solar rooftop, solar farms, solar BESS, wind farms, hydroelectric
power projects and industrial waste-to-energy, in both Thailand and overseas. This expansion will be
facilitated through new greenfield investments, joint ventures with business partners and through M&As.
At the end of February 2024, GULF will make the first LNG shipment to support the electricity production
of Hin Kong Power project unit 1, with an installed capacity of 770 MW. This marks GULF as the first
private company in Thailand to initiate LNG imports. The import of such LNG is in line with the
country's natural gas supply plan as it will help minimize risks in gas procurement and increase energy
security for the country as well.
The progress of projects under digital business remains on track. The digital asset exchange business
under “Binance TH by Gulf Binance” platform was fully launched to the general public on January 16,
2024, with a target to capture approximately 30% of the market share in 2024. Meanwhile, the data center
is under construction, with plans to launch the first phase of 20 MW in Q1/2025. The data center will
focus on using clean energy to reduce greenhouse gas emissions and support sustainable digital economic
development. Moreover, opportunities for the extension to other digital services are being explored. For
the virtual bank business, GULF plans to collaborate with partners who provide channels, customer bases,
and insight data. The goal is to utilize technology to create innovative and cost-effective financial
services for underserved market.
Additionally, the Board of Directors has resolved to propose to the 2024 Annual General Meeting of
Shareholders, to be held on April 4, 2024, to consider and approve the dividend payment from the
Company’s operating results for the year ended December 31, 2023, to shareholders at the rate of THB
0.88/share or equivalent to the dividend payout ratio of 78.1%. The date to determine the names of the
shareholders who would be entitled to the dividend (Record Date) is on February 29, 2024, with the
dividend payment date on April 25, 2024.”
