WHA Group Posts Record 1,089% Net Profit Increase in Q3/2017

BackNov 15, 2017

  • - In line with the Government’s EEC policy
  • - Year-end interim dividend expected

Bangkok/ 15 November, 2017 – WHA Corporation PCL. (WHA Group) has announced its operating results for Q3/2017, amounting to THB 2,150 million from total revenue and profit sharing from investments in affiliated companies and joint ventures. This result represents a 32% increase YOY. The net profit increased by 1,089%, from THB 42 million in 2016 to THB 506 million YOY. These record figures result from land transfers, profit sharing of power businesses following COD plan of 4 projects since November 2016, and a decrease in financial costs. Ms Jareeporn Jarukornsakul, Group CEO, is confident of a strong year-end performance.

Ms Jareeporn Jarukornsakul, Group Chief Executive Officer, WHA Corporation PCL. (WHA Group), the leading integrated provider of logistics, industrial estates, utilities and power and digital platform, disclosed that the Company’s operating results of Q3/2017 ending September 30, 2017 reached a total of THB 2,150 million in total revenue and profit sharing from investments in affiliated companies and joint ventures. This is a significant increase from THB 1,628 million during the same period last year, and a net profit of THB 506 million compared to THB 42 million, or a record increase of 1,089% for the same period. For the first nine months of 2017, the Company’s total revenue and profit sharing amounted to THB 6,922 million, an increase of 30% from THB 5,336 million YOY. The net profit for the same period significantly jumped to THB 1,559 million compared to THB 497 million, or a 214% growth. The dramatic rise came mainly from land transfers, growth of profit sharing from the commercial operation date (COD) of the 4 SPPs, leading to the Company’s commercialized capacity according to its shareholding ratio of 447 MW, as of end September 2017. The net profit increase also came from the significant decline of financial costs, due to a THB 5,000 million loan repayment last April, another one in July amounting to THB 2,300 million, and lower interest rates after a refinancing scheme through debenture issuance and offering.

Ms Jareeporn also said that Q4/2017 would be the best quarter for the company because of expected revenue from asset sales worth THB 3,090 million to WHART. The merging of WHAPF and WHART and the assets sales to WHART were in line with the business plan, with asset transfers to be completed in November. In addition, the Company has prepared to sell assets worth not over THB 1,690 million to HREIT which is currently undertaking a road show to attract institutional investors and is expected to be completed within this year.

Following the Cabinet and NLA approval of the draft Eastern Economic Corridor (EEC) Act, WHA Group is currently boosting its industrial estate business. It has filed a request to the Industrial Estate Authority of Thailand (IEAT) for permission to enhance and make Hemaraj Eastern Seaboard Industrial Estate 4 (HESIE4) the industrial zone for advance automobile, robotics, aerospace and logistics customers. The EEC policy has generated an increase in local and international customers, especially from China and Japan. The company is also confident that industrial estate land sales will be on the rise toward the end of 2017-2018 as most WHA Group projects are located in the EEC. In addition, Phase 1 of its industrial estate in Vietnam, with a total area of over 3,000 rai, is expected to be operational by the end of 2017.

Revenue of the utilities business, including water distribution services, is expected to reach the target growth of around 10% due to the increase of customers within the industrial estates, especially from the power and petrochemical sectors that consume large amounts of water. The power business is also expected to grow by at least 40% due to the COD of 3 power plants in the second half of the year.

Property for local logistics business targets 200,000 – 250,000 square-meter rental area. At present, the company has lands which are under contract and projects under possible negotiation, either Built-to-Suit and Sale and Leaseback, reaching over 80% of the target. There is also a logistics project in Indonesia which is under negotiation with customers for the second phase.

The Board of Directors approved an interim dividend payment at THB 0.0488 per share, from the operating results for the nine-month period, payable on December 8, 2017. The record date for the right to receive dividends is November 24, 2017, and the XD date is November 22, 2017.