CK Power: Bangkok Reports Strong Profits Despite Project Costs
CK Power Plc, a major renewable energy producer, reported total revenue of 10.79 billion baht for 2024, navigating challenging climate conditions and rising interest rates. While net profit attributable to equity holders declined 8% year-on-year to 1.35 billion baht, EBITDA increased 8% to 5.55 billion baht, highlighting robust operational performance and resilient cash flow.
The profit dip stemmed primarily from reduced profit sharing from an associate company and increased finance costs related to the ongoing construction of the Luang Prabang Hydroelectric Power Project. This significant investment, while impacting short-term profitability, underscores CK Power’s commitment to renewable energy expansion and future growth.
A key driver of CK Power’s 2024 financial performance was Nam Ngum 2 Power Co Ltd (NN2)«s impressive 25.3% surge in electricity sales revenue compared to the previous year. This increase resulted from favorable hydrological conditions, including higher initial reservoir water levels and increased water inflow throughout 2024 due to the La Niña weather pattern. This enabled NN2 to achieve its highest-ever net profit, demonstrating the positive impact of favorable environmental conditions on hydropower generation.
CK Power anticipates stronger performance in the first half of 2025, building on 2024’s momentum. Sustained high reservoir water levels at NN2 are projected to increase power availability by 5% in January 2025 compared to January 2024. Furthermore, the Xayaburi Hydroelectric Power Plant (XPCL) reported a 23% increase in January 2025 electricity sales compared to the same period in 2024.
Beyond hydropower, CK Power is diversifying its renewable energy portfolio through strategic investments in solar power. Three solar projects are under development to supply electricity to Bangkok Expressway and Metro Public Company Limited (BEM), integrating renewable energy into Thailand’s mass transit systems. The first phase (7 MW capacity) is 65% complete, with one project commencing commercial operations in December 2024 and the remaining projects slated for completion in the second quarter of 2025.
CK Power’s strong financial health is evidenced by a liquidity ratio of 1.86 as of December 31, 2024 (a 0.18 increase year-on-year) and a low net interest-bearing debt-to-equity ratio of 0.52, demonstrating prudent financial management. Anticipated policy rate cuts by the US Federal Reserve and the Bank of Thailand, along with NN2’s 1.4 billion baht debenture redemption in 2024, are expected to further improve CK Power’s capital structure. The company continues to monitor interest rate fluctuations and strategically manage its long-term debt.
Managing Director Thanawat Trivisvavet reiterated CK Power’s commitment to sustainable growth, highlighting the company’s 'C-K-P» strategy: Clean Electricity, Kind Neighbor, and Partnership for Life. This framework underscores the company’s dedication to 100% renewable electricity operations, community development, and innovation in digital energy solutions. This commitment is validated by CK Power’s AAA SET ESG Rating and inclusion in the ESG100 list. CK Power’s strategic investments and commitment to sustainability position it for continued growth and leadership in the renewable energy sector.
