Earnings Report /
Thailand

Gulf Energy Development PCL: Big beat (record high profit)

  • Both the bottom-line and core profit set new records!

  • GULF reported a 1Q22 net profit of Bt3,395m

  • Revenue shot up by 128% YoY and 35% QOQ

Kijapat Wongmetta
Kijapat Wongmetta

Equity Research Analyst

Bualuang Securities
13 May 2022

As an IPP-heavy Utilities stock, GULF earnings profile is largely insulated from higher gas prices. A slate of new IPP capacity will COD, facilitating strong earnings growth. The upcoming PDP2022 will open opportunities to invest in new hydro and other renewable projects. Furthermore, GULF’s digital infrastructure biz (telecoms, data center, and digital asset exchange) will augment growth. Based on those stories, we expect its earnings CAGR to sustain double digits for a decade ahead (with only modest downside risks). BUY!

Both the bottom-line and core profit set new records!

GULF reported a 1Q22 net profit of Bt3,395m, up by 108% YoY and 12% QoQ and a new record high. NPAT was 35% ahead of our estimate (greater revenue and extra gains and lighter interest expenses than assumed) and 37% above the consensus. Stripping out extra items, core earnings would be Bt3,105m, up by 30% YoY and 13% QoQ (also a new record). The core number beat our estimate by 24% (greater revenue and lighter interest expenses than assumed) and the consensus by 26%.