Compared to the first quarter, the net profit increased 96 per cent from Bt598 million, thanks to a more favorable business environment which included a recovery of industrial customer's demand, lower fuel costs and stable electricity tariffs.
Industrial customer sales volume continued to improve from 1st quarter 2009 and has returned to normal levels. The company's profit margin from the segment also continued to improve as gas and coal costs gradually reduced since the first quarter. In particular the coal price has decreased dramatically in 2nd quarter and has dropped to around US$70 per tonne by end of second quarter compared to $125 per tonne at the same time last year.
Esa Heiskanen, the CEO of Glow Group, commented that the business environment became more favorable.
"At the beginning of the year, we were very concerned with our industrial customer's sales volume, fortunately demand has continued to improve from 1st quarter and has now returned to normal level. Meanwhile, we are expecting a continuing recovery of our profit margin in the Cogeneration business where last year fuel prices were high, while the power tariff or FT was not adjusted to reflect those high prices. This year fuel prices have reduced, especially for coal, where this year coal price had dropped by nearly 50 per cent.
"In addition to the improving business environment, we will have new demand from industrial customers whose new plants are now under commissioning. Our new 115 MW coal-fired power plant is scheduled to come on-line by the end of the year and will fully contribute to higher earnings in 2010. For the next two years, Glow will continue to be the power company in Thailand with the highest organic growth of over 1,300 MW or 67 per cent increase in capacity."