BCPG announces business growth plan of over 75% in five year ahead with investment fund more than 4.5 Million Baht and new power plants in CLMV – Asia Pacific
BCPG announces its five-year plan with an investment fund of more than 4.5 Million Baht to reach its business growth of 10-15% per year from both existing and new power projects to compensate the absence of adder rate, as well as leveraging its EBITDA with new large power plants in CLMV countries and Asia-Pacific.
Mr. Bundit Sapianchai disclosed BCPG’s five-year plan with a significant growth of 10-15% per year and a double increase in EBITDA in five years. To reach its target, the Company plans to apply the 4E’s strategy;
- Expanding: To balance the diversity of BCPG’s renewable energy technologies and enhance revenue stability, the Company plans to expand its business portfolio with new large power plants in CLMV countries and Asia-Pacific, as well as investing in under development projects for better returns in the long run.
- Extending: To keep pace with the changing world, BCPG has forged ahead in Digital Energy Business by co-developing digital energy products and services with Bangchak Corporation. The Company is now in search of marketing channels through partnership with the Internet service providers, who own strong marketing channels, market share, sales teams and after sales service. Recently, BCPG has signed an MOU with TOT Public Company Limited and is now conducting research on Energy Storage System and Biomass business.
- Enhancing: To enhance BCPG’s revenue, the Company always seek for new possibilities such as applying hybrid technology by producing solar energy in hydro power plant.
- Evaluating: To maintain efficiency of power plants, every BCPG’s plant is always technically and financially evaluated, developed and managed to reach its highest performance.
According to Mr. Bundit, the Company’s EBITDA, from now on, will grow at least 10-15% and eventually compensate the absence of adder rate within 2025. The expected EBITDA results from;
- The commercial operation (COD) of four solar power plants with a total production capacity of 14.7 MW, which are now under development, in Japan.
- Investment in expansion units of geothermal power plants in Indonesia, including other new projects with the right to explore.
- Full revenue recognition of two hydro power plants in Laos – Nam San 3A and Nam San 3B. In addition, from 2022, the Company will gain higher tariff from electricity sales to Vietnam in the Take-or-Pay scheme and the payment in USD.
- The investment in 600-MW wind power plant in Laos under Impact Energy Asia Development Limited, the Company is now under negotiation process with wind turbine manufacturer and at the final stage of power purchase agreement approval with Vietnam’s government. The project is expected to be completed within 2023.
- Revenue recognition from providing digital energy products and services, the Company is now conducting market research through partnership with the potential Internet service providers.
Mr. Bundit also stated that the achievement in innovative investment model through hydro power plants in Laos and electricity sales to Vietnam exposed the Company to profound experiences and expertise in power plant management in this region, which will be beneficial to the Company to apply the same model for development of 600-MW wind power plant located near the border of central Vietnam in the future.
Moreover, the Company plans to invest in two transmission line system projects, the first 220-kV transmission line system project will be located in the Northern Laos to transmit generated electricity over 500 MW from Nam San 3A, Nam San 3B and other nearby projects, which have been approved by the Vietnam government to enter into power purchase agreement with Vietnam Electricity, to Vietnam.
The second 500-kV transmission line system project located in the southern Laos will be capable of serving the production capacity of over 1,000 MW, the project will transmit electricity generated from 600-MW wind power plant and other nearby projects to Vietnam.
“BCPG plans to raise the investment fund of more than 45,000 Million Baht to reach business growth plan of 10-15% per year in the next five years. And with competitive business strategy and investment plan, the Company is confident in searching source of fund.”
BCPG was established in 2015 after spinning off from Bangchak Corporation, the Company was listed on the stock exchange market in 2016. With a committed goal in having revenue stability and steady dividend payment to shareholders, the Company has been operating its business with a competitive strategy, in search of new business opportunities, efficiently managing business portfolio in terms of geography and technologies, as well as attaching importance to good governance and responsibility to society and environment.
According to 2019 business performance, BCPG’s revenue was 3,427 Million Baht with a total EBITDA of 2,955 Million Baht, a total net profit of 1,801 Million Baht, earnings per share of 0.90 Baht and the interim dividend payment for the first three quarters of 2019 of 0.48 Baht or a 3.95% of annual dividend yield.
“Through the five years of stable and sustainable growth, BCPG has been keen on business expansion in clean energy business to create values for every sector. Experiences and expertise gained from the investments in various countries will definitely bring about the Company’s growth over 75% in the next five years” said, Mr. Bundit