Golden year, “power plant stocks”, many positive factors support

causing many investors to choose to buy power plant stocks even attach the port stock price it will not be as prominent as other groups But it helps to diversify the risk very well.

This year should be another good year for power plant business Because many positive factors come into support since the adjustment increase the Ft New for the period January-April 2023, with the residential group maintaining the same Ft at 93.43 satang per unit, or the equivalent of electricity at 4.72 baht per unit, to ease the cost burden of the people.

As for other groups, business sectors, industrial sectors, companies, department stores, shops, initially, the Energy Regulatory Commission (ERC) decided to raise the Ft to 190.44 satang per unit when combined withelectricity billThe foundation will increase the cost of electricity for this group to 5.69 baht per unit.

Causing the private sector to worry because it directly affects the cost. Until having to come out and move and submit a letter requesting consultation with the Prime Minister and the Ministry of Energy to review such decisions.

by the private sector increase in the electricity bill This time is still inappropriate. because the economy has not fully recovered while salary about to adjust soon If the electricity bill rises again The private sector may not be able to accept either. He is also concerned that it will affect foreign investment.

When there was finally resistance, the ERC backed down and decided to raise Ft this group to 154.02 satang per unit, or equivalent to the cost of electricity at 5.33 baht per unit, from the previous 5.69 baht per unit.

The Ft hike is an immediate positive factor for entrepreneurs.power station because it will sell electricity at a higher price Especially the group that sells electricity to industrial customers (IU).

Trinity Warranties It is estimated that the electricity cost of 1 satang per unit will make a profit from BGRIM which has a share of domestic IU customers of 24%, an increase of 24 million baht per year, or approximately 1,454 million baht in 2023, under the assumption that there will be no reduction in electricity bills throughout the year. GPSC With 22% of IU customers, profits will increase by 63 million baht per year or about 3,817 million baht in 2023.

As for this year, many companies are preparing to start operating.power stationnew, making more revenue from electricity sales coming in such as the big brother of the gr GULF New domestic and international generation capacities will add nearly 3,000 megawatts RATCH has 3 new projects to start operating this year. with a total production capacity of more than 900 megawatts

GPSC plans to launch 2 new projects this year to start selling electricity. The total production capacity is almost 200 MW. EGCO will, in the last 2 years, have a new production capacity of 805 MW. This year BGRIM will have 4 projects totaling more than 200 MW.

While on the cost side, there is a tendency to decrease in line with the ongoing decline in gas prices. amid fears that the conditionrecessionwhich will reduce the demand for energy

by information from DBS Vickers Securities (Thailand) that gas prices have fallen very rapidly since the end of August 2022. Currently, the price of gas futures in the United States is about $ 4 per million BTU, or a decrease of 59% from the highest level of $ 9.7 per million.BTU End August 2022

In addition, the power plant sector has also benefited from the appreciation of the baht. because of borrowing in currencydollarmany whenbaht appreciationStrong, for example, during this time, the strongest in 8 months, falling below 34 baht per dollar. As a result, the debt is reduced and additional gains from the exchange rate will also be recognised.

At the same time, the busy tourism sector Especially the Chinese market where it is expected that around 5 million Chinese tourists will travel to Thailand this year, which will increase the use of electricity.

sideAsia Plus Securities 2023 mega power plant earnings are expected to increase by around 18% YoY, mainly driven by GULF, which will see a strong growth of 42% YoY from the realization of new projects expected to COD in 2023. 1.5-1.7 thousand MW

including groupsSPP Power Plant which has a relatively high proportion of electricity sold to industrial customers such as BGRIM and GPSC, which are expected to benefit from the increase in Ft and the direction of gradually decreasing gas prices. As a result, profits are likely to recover from a low base in 2022.

However, the recovery will be gradual and will not return to normalcy as in 2021, while coal-fired power plants such as BPP are expected to increase profits by 15% YoY from a gradual decline in coal costs as well.

partIPP Power Plant Like RATCH, EGCO where most of the energy costs will be transferred to the government (EGAT). Therefore changes in energy prices have little effect on the company’s profits. Operating profit will vary according to the demand for electricity from the government.

In 2023, it is expected RATCH EGCO’s earnings are expected to rise 14% YoY from the realization of new projects of around 900 MW, while EGCO expects earnings to fall 22% YoY due to an unusually high profit base last year. due to South Korea’s Paju power plant Had positive results from gas futures contracts

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