Earnings Report /
Thailand

Global Power Synergy PCL: High fuel costs make for 1Q22 core loss; red ink expected for 2Q22

  • Core loss reported, due to surges in gas and coal prices

  • GPSC posted a 1Q22 bottom-line of Bt313m

  • Revenue increased by 64% YoY and 24% QoQ

Kijapat Wongmetta
Kijapat Wongmetta

Equity Research Analyst

Bualuang Securities
9 May 2022

Coal and gas prices have risen sharply, squeezing GPSC’s 2022-23 earnings profile and stock price, but its good long-term outlook stands unchanged. Moreover, we expect the firm’s aggressive expansion plans for its EV and battery ventures to build organic growth over the long haul. Our HOLD call stands.

Core loss reported, due to surges in gas and coal prices

GPSC posted a 1Q22 bottom-line of Bt313m, down by 84% YoY and 73% QoQ. The reported number was 14% short of our estimate (but beat the consensus projection of a net loss). Stripping out extra items (a gain from divesting ISP1), the core loss would be Bt210m, a YoY and QoQ reversal. The core loss was much deeper than we had expected, but was shallower than the consensus estimate. Both the core and net numbers missed our projections, due to a slimmer GM than assumed.