CKPower's EBITDA margin remaines strong, supported by recent interest rate cuts
Mr. Thanawat Trivisvavet, Managing Director, CK Power Public Company Limited or CKPower (SET: CKP), one of the region's largest producers of electricity from renewables with one of the lowest carbon footprints, announced strong operating results for both Q3/2024 and the first nine months of 2024. The company demonstrated a strong and stable financial performance, achieving total revenue of Baht 2,901.5 million in Q3/2024, a 9.5% increase year-over-year, and Baht 8,012.6 million for the first nine months, a 1.4% rise. The company achieved a Gross Profit Margin of 29.6%, an 8.0% increase, and an EBITDA Margin of 44.4%, representing a 7.0% year-over-year growth.
The company's performances in Q3 and the first nine months of 2024 were primarily driven by Nam Ngum 2 Power Company Limited (NN2), which recorded year-over-year electricity sales revenue growth of 32.5% and 42.2% respectively. These increases were largely due to the effects of La Ni?a and Typhoon Yagi, which resulted in higher water inflows to the reservoir, particularly in September 2024. These conditions enabled NN2 to increase electricity sales revenue significantly. The company also benefited from reduced fuel costs at Bangpa-in Cogeneration Limited (BIC) due to declining natural gas prices.
"The high water levels currently maintained at Nam Ngum 2 Hydroelectric Power Plant will enhance our water management flexibility through the end of 2024 and into the first half of 2025. Additionally, the U.S. Federal Reserve's policy rate cut, along with Thailand's policy rate reduction have helped reduce financial costs for Xayaburi Power Company Limited (XPCL) and positively impacted CKPower's share of profit from associates in Q4 and into 2025," Mr. Thanawat added.
CKPower continues to maintain a robust financial position. As at September 30, 2024, the company's total assets reached Baht 73,653 million, growing 7.1% from the end of 2023. The Current Ratio improved by 0.30 to reach 1.98, and the Net Interest-bearing Debt to Shareholders' Equity Ratio remained low at 0.54, showing only a slight increase from year-end 2023. These figures highlight the company's strong liquidity and debt-servicing capability.
On October 28, CKPower received an "Excellent" Corporate Governance (CG) Score for the seventh consecutive year from the Thai Institute of Directors Association. This recognition reflects the company's commitment to stakeholders across environmental, social, and governance (ESG) dimensions through efficient, transparent, and accountable management practices. At the same time, CKPower was also recognized as one of 50 model organizations in the ESG DNA Project, a sustainability knowledge initiative organized by the Stock Exchange of Thailand. Over 79.7% of CKPower employees completed the required training courses, underscoring the company's commitment to sustainable supply chain management and responsible engagement with all stakeholders.
"We remain committed to producing renewable energy for Thailand while advancing our climate strategies that align with global standards, including climate-related financial disclosures. Our long-term goal is to achieve net-zero emissions by 2050, in a concrete and measurable way." Mr. Thanawat concluded.