BGRIM confident to cope with drought, sluggish global economy on a robust fundamental

Energy Press Releases Friday February 7, 2020 15:10
Bangkok--7 Feb--B.Grimm Power

B.Grimm Power Plc (BGRIM), one of Thailand's leading private power producers, is well prepared to deal with the current drought by embracing international standards for water supply management for its electricity production.

The company is also confident that its business is not affected by the fluctuations of the global economy as it has a world-class customer base with additional buyers continuously joining its clientele.
BGRIM CEO Preeyanart Soontornwata said: "We have closely monitored the drought situations and planned our water management with all the industrial estate operators.

"We are confident to continuously produce high-quality electricity and steam to meet strong demand from existing world-class customers and new clients which come in every quarter as energy requirement from the industrial sector remains robust."

She noted that BGRIM's cash flow would be stable for long term as most revenue is derived from long-term power purchase agreement of up to 25 years from state utilities both at home and abroad.

Regarding the drought situation, the company has closely monitored the development and BGRIM has put in place guidelines and measures for water management to ensure maximum benefits by means of consuming and preserving water resource in a sustainable way.

Most of the water used in the production of co-generation power plants comes from recycle process or treated waste water from factories.
In addition, the company's plan to manage electricity production efficiently also enables effective water management.
BGRIM has worked closely with industrial estate operators for managing water usage prudently.
It has been confirmed that water reserves in wells in industrial estates are sufficient for operation until the rainy season.
"Rest assured that BGRIM's power plants will be able to serve and support the industrial sector continuously," Mrs Preeyanart said.

Concerning the impact of the global economy situation on BGRIM, she pointed out that more than 70% of the company's revenue comes from power sales to government agencies, both in Thailand and overseas under the 20-25 year contracts which are not subject to changes in economic conditions.

The rest of BGRIM's earnings derive from industrial sectors in Thailand and Vietnam whose power demand looks set to continue to be strong due largely to world-class customers from Japan established there.
The company has continued to attract new industrial clients in Thailand which added a combined 25 MW in demand in 2019.
Contracts for 15 MW power sales have been concluded with a group of customers which are expected to come on line the first half of this year.
Meanwhile, there are still demands from more than 1,000 potential clients in industrial estates at sites which are already in operation or under development.
BGRIM's combined installed capacity now stands at 3,424 MW from total of 57 projects, 2,896 MW of which is from 46 projects already in service.
Construction of the 16-MW wind farm in Thailand and the 39-MW solar photovoltaic system in Cambodia is well underway for commercial startup later this year.

The company has been studying the potential expansion with stable and sustainable growth towards securing not less than 5,000 MW in aggregate power sale deals by 2022 through new project development, and mergers and acquisitions (M&A) of projects both at home and abroad.

These M&A accords are expected to be gradually concluded in the first half of this year.

New development projects overseas have been explored by BGRIM with feasibility studies are being conducted for ventures in South Korea, Vietnam, Malaysia, Cambodia and the Philippines. The progress involved is expected to be made gradually by this year as well.

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