BGRIM posts 54% core profit growth in Q1 amid hostile environment Strong financial foundation with 21 billion cash on hand to weather crisis

B.Grimm Power Plc (BGRIM) recorded a 54% growth in normalized net profit for the first quarter of this year on a 9.4% revenue increase.

The SET-listed private power producer booked core profit from operations, excluding extra items, in the January-March period at 1,158 million baht, with 682 million baht attribute to major shareholders, up 54% from the previous year as revenue grew to 11,223 million baht.

BGRIM CEO Preeyanart Soontornwata says the result demonstrates the company's robustness especially at the time of economic downturn which is aggravated by the Covid-19 pandemic.

Fueling BGRIM's first-quarter performance was mainly due to the 944 MW incremental production capacity rendered over the past one-year circle by four projects which were brought on stream and the acquisition of two co-generation ventures namely the SPP1 in 2019 and the 123-MW Ang Thong Power Plant in March this year.

BGRIM's power sales in the first quarter remained strong, thanks to the diverse industry clientele with rising energy demand from the packaging group (up 15.1%), electronics sector (up 13.2%), household electrical appliances (up 8%), tire (up 3.2%).

There were also new industrial customers which signed up for 26 MW in the past 12 months.

Meanwhile, the margin of EBITDA (income before interest and taxes and depreciation and amortization) rose to the highest level of 29.2% in the first quarter due to the improvement of the gas turbine power generator and the realisation of BGRIM's solar energy ventures in Vietnam which offered the highest EBITDA yield.

Net profit was at 159 million baht, 81 million baht of which was attributable to major shareholders – mainly from unrealised loss primarily from the foreign exchange which was a non-cash item amounted to 886 million baht, calculated from US dollar debt and the depreciation of Thai baht against US dollar.

In the wake of the Covic-19 pandemic, BGRIM currently has over 21 billion baht in cash which allows it to deal with the effect from the protracted Covic-19 crisis. At the same time, the company has also received additional working capital facilities of four billion baht to a total nine billion baht from financial institutions to enhance liquidity.

BGRIM is ready to stand by its stakeholders to overcome this crisis together.

The company has set up a team to closely monitor and respond to government policies related to the crisis.

BGRIM has provided medical and social assistance, worth not less than 50 million baht, as well as putting in place various measures to take care of the safety of employees while maintaining the company's service quality without any layoffs.

Most of BGRIM's revenue comes from long-term power purchase agreements with government agencies which are not directly affected by the Covic-19 situation.

There are still new customers coming in for the rest of the year, totaling 30 MW in power purchase.

In addition, the on-going proactive cost control is expected to save 34 million baht from the extension of the lifespan of some components. Furthermore, improving gas turbines' efficiency of various projects in 2019 and 2020 is expected to cut natural gas cost by not less than 50 million baht per year.

Meanwhile, the company has conducted a thorough cash flow assessment based on various assumptions that offers a strong sense of confidence, having no impacts on the repayment and investment plans.

At the same time, there are still projects under construction such as the 39-MW Ray Power's solar project in Cambodia, the 13-MW Lakchai floating solar farm and the Bowin Wind Farm 1 and 2 Projects which are slated to start commercial operation between the fourth quarter of 2020 and first quarter of 2021.

The company focuses on carefully analyse investments and risk management to ensure the company will grow steadily and sustainably in accordance with the commitment to put in place a total of 5,000 MW capacity from both operating and under-development projects in 2022.

BANPU and SINGER Join Hands in Providing Thais Access to 1.3 Million High-Quality Face Masks

The current COVID-19 pandemic has made individuals and organizations in all sectors alert and ready to protect themselves from the novel coronavirus. The initial response of the people was to get a sufficient amount of personal protective gear such as hygienic masks. However, even the pandemic has lasted for a few months; demand for hygienic masks remains high. Many people still lack access to them because of some constraints such as unaffordable prices, supply shortages, and lack of supply distributions in some areas.

Banpu Public Company Limited, as a private organization with a commitment to the corporate governance principles and corporate social responsibility, aims to contribute necessary medical and public health equipment and supplies for the prevention and control of the current COVID-19 outbreak. Banpu has ordered 1,500,000 hygienic masks made from the anti-mite nanofabrics to be distributed to the public to help them stay safe and hygienic. To get protective masks to as many people as possible, Singer Thailand Public Company Limited, or Singer, will distribute 1,300,000 pieces of high-quality cloth masks to people in remote areas where hygienic masks are not sold in shops due to shortages. This collaboration will widen access to high-quality health protection supplies at an affordable price.

Ms. Somruedee Chaimongkol, Chief Executive Officer of Banpu Public Company Limited, said: “We have kept a close watch on the COVID-19 outbreak situation and realized the necessity to deliver cloth masks to all people, including those in remote areas, who need them for health and safety reason in their daily lives. So, we ordered the production of 1,300,000 good quality cloth masks, which will be distributed to Thai people in all areas while the other 200,000 pieces will be donated to public organizations and foundations. With Singer’s cooperation, we can get good quality cloth masks distributed to wider areas where Thai people still need them for heath protection. Better still, this move helps manufacturers, distributors, and consumers at the same time, not to mention that it will help curb the spread of coronavirus until we finally overcome this crisis.”

Mr. Kittipong Kanokvilairat, Chief Executive Officer of Singer Thailand Public Company Limited, stated: “Singer sees how important the distribution of necessary supplies to people and wish to act as a bridge through which high-quality masks can be sent to people across Thailand. We planned to train our representatives to become sales agents of nanofabric masks manufactured in a standard hygienic process. In this task, Singer will bear the inventory and sales service costs to keep the price of hygienic masks lower than the production cost, as intended by Banpu. Our company will sell these nanofabric masks at over 1,000 Singer’s sales outlets in 763 sub-districts, 475 districts, all over the country. We firmly believe that these nanofabric masks will reach those communities in remote areas.”

Both Banpu and Singer are well aware of the significance of controlling the spread of COVID-19 and
are ready to collaborate with all agencies both in public and private sectors to help Thailand overcome the current crisis as soon as possible.

ROLLS-ROYCE MOTOR CARS REFLECTS ON UNIQUE 116-YEAR HISTORY

4th May 2020, Goodwood - embargoed to 00:01 BST

• A unique moment of historical symmetry for Rolls-Royce Motor Cars occurs on 4th May 2020
• Date marks both the anniversary of first meeting between founders The Hon Charles Rolls and Henry Royce in Manchester, England on 4th May 1904 and resumption of production at Goodwood‑based manufacturing plant

The-Honourable-Charles-Stewart-Rolls

Rolls-Royce Motor Cars records another chapter in its long story today. It was on this day in 1904 that The Hon Charles Rolls first met Henry Royce at the Midland Hotel, Manchester – an encounter after which the motor car, and the world of luxury, would never be the same again. It is with a fitting sense of historical symmetry that production resumes at the Home of Rolls-Royce today, 4th May, on the anniversary of Rolls first declaring of Royce, “I have met the greatest engineer in the World”.

Together, Rolls and Royce shared a vision to make the future of motoring extraordinary. Henry Royce, an engineer, had a desire for perfection and an innate work ethic that later became the pillar of Rolls-Royce philosophy; “Take the best that exists and make it better.” Charles Rolls, an aristocrat, was an accomplished motorist, experienced in selling imported foreign motor cars. His business partner, Claude Johnson, stepped into the role of Managing Director of Rolls and Royce’s venture and expanded the fledgling company’s reputation.

Sir-Henry-Royce

The company they founded has faced extraordinary challenges and difficulties throughout its 116‑year history. Though still in its infancy, Rolls-Royce endured in 1918 when the greatest pandemic of the 20th Century, Spanish Flu, swept the world. A decade later, it again stood firm when the Great Depression laid waste to the global economy. Over the years that followed, Rolls‑Royce has withstood the shocks of economic and political crises at home and overseas, embodying calm and constancy in a tumultuous, uncertain world.

In its more recent history, the company weathered the financial crash of 2008 and came out the other side more resilient and determined than ever. The marque has always risen to every challenge with ingenuity, commitment, courage and solidarity, so while Covid-19 is possibly the biggest test Rolls-Royce has ever faced, it’s certainly not the first.

For the current generation of the Rolls-Royce family, working from home has been a new experience. For Sir Henry Royce, however, it was entirely normal. Indeed, some of his most influential designs were produced in the private studio he maintained at his home – Elmstead – at West Wittering, just eight miles (12.8 kilometres) from the present-day manufacturing plant and global Head Office.

Royce clearly found inspiration and creative energy in the peace, quiet and solitude that working away from the bustle of the office and factory provided. Famously, while walking on the nearby beach one day, he sketched the initial design for the R-series aero engine in the sand with his walking-stick. A later development of that design, the Merlin, would earn everlasting acclaim as the engine which powered the legendary Supermarine Spitfire.

Sir-Henry-Royce-at-Elmstead,-West-Wittering

Royce’s home studio was also the birthplace of another, perhaps less storied engine that nevertheless occupies an important place in the annals of aviation achievement. In 1919, his Eagle VIII provided the power for the first-ever transatlantic flight, from St John’s, Newfoundland to County Galway in Ireland, by British adventurers Captain John Alcock and Lieutenant Arthur Brown. Rolls-Royce Motor Cars commemorated the centenary of their astonishing feat, and the engine that made it possible, in the spectacular Wraith Eagle VIII Collection Car, limited to just 50 examples, released in 2019.

Torsten Müller-Ötvös, Chief Executive Officer, Rolls-Royce Motor Cars, said, “We are living through historic times. Our primary focus is, of course, on safely resuming production at The Home of Rolls-Royce in Goodwood, West Sussex; but in marking this amazing anniversary, we are taking a moment to reflect on what 116 years have taught us.”

He added, “As a company, we can draw strength from the knowledge that although Rolls-Royce has faced uncertainty many times over the years, it has emerged more resilient and confident, with its fundamental principles unaltered. Our present challenges may be unprecedented, but as we look to the future, I am confident there is no company in the world better prepared to overcome them.”