CKPower's First Quarter 2025 Net Profit Surges 82.9% Despite Dry Season, Prepares for El Niño
CKPower's first quarter 2025 net profit surged 82.9% to 1.159 billion baht, driven by strong hydroelectric plant performance and reduced financing costs, as the company prepares for potential El Niño conditions later this year.
CKPower Managing Director Thanawat Triwiswvet announced the company's strong first quarter 2025 performance, with core net profit reaching 1.159 billion baht, up 525 million baht or 82.9% year-on-year. The growth stems from robust operations at both of the company's hydroelectric plants, including a 198.6 billion baht share of net profits from Xayaburi Power Company Limited (XPCL), up from 190.7 billion baht the previous year, thanks to increased water flow and higher electricity sales volumes combined with reduced financing costs from long-term debt repayment and declining global interest rates.
Perfirmance at Fak Kham 2 Power Company Limited (NN2) also improved with higher electricity sales compared to the previous year, driven by reservoir water levels at the beginning of 2025 that exceeded the prior year and increased water inflow during the first quarter. This sustained growth occurred despite operating during the dry season.
Thanawat explained that the company's production capacity structure, based primarily on renewable energy, insulates operations from Middle East instability and global energy price volatility. Energy price fluctuations affect only fuel costs for electricity sold to industrial customers through Bangpakong Cogeneration Company Limited (BIC), representing just 3% of total company output.
In preparation for potential El Niño conditions expected in the latter half of 2025, CKPower has developed a Hydrometeorological Monitoring and Forecasting System to enhance efficiency and accuracy in predicting hydroelectric power plant output capacity.
The Luang Prabang hydroelectric project is 72% complete as of March 2025, on schedule. The company's financial position remains solid, with a liquidity ratio of 1.78x and a net interest-bearing debt to equity ratio of just 0.47x, reflecting efficient cash management and debt repayment capabilities.
Management stated that further interest rate reductions in the U.S. and Thailand would reduce financing costs and support continued 2025 performance, with the company continuously monitoring interest rate adjustments and managing long-term debt appropriately.
Under its five-year plan (2025-2029), CKPower aims to expand production capacity through solar power projects, both via private PPAs and participation in government-sponsored renewable energy auctions, while selling renewable energy certificates (RECs). In 2024, the company's renewable energy plants supplied Thailand with over 10 million megawatt-hours.
