Thachang Green Energy PCL

Thachang Green Energy Public Company Limited, or TGE, reported second-quarter net profit for the fiscal year 2569 of 47.29 million baht, down 35.04% from 72.79 million baht in the same period last year. Revenue from sales and services was 220.3 million baht, down 12.4% from 251.4 million baht. The main factor was electricity sales revenue, the group's core business, which fell to 186.1 million baht, a decline of 12.3%, because revenue from main power purchase agreements dropped after one company in the group shut down machinery for maintenance, while raw material costs per unit of electricity production rose. As a result, gross profit from the electricity sales business in the second quarter fell by 28.6 million baht, or 34.5%. Revenue from other businesses also declined. Revenue from biogas power plant management was 16.9 million baht, down 16.5%. Revenue from water and steam sales was 14.4 million baht, down 8.8%. Revenue from waste disposal services was 2.9 million baht, down 10.3%. However, the company reduced administrative expenses to 16.8 million baht, down 8.5%, and finance costs fell to 4.1 million baht, down 42.0%, thanks to gradual repayment of long-term bank loans, which helped partially offset the impact of lower gross profit. For the first six months of fiscal year 2569, TGE posted net profit of 96.02 million baht, down 18.52% from 117.86 million baht. Revenue from sales and services was 467.0 million baht, down 1.3%, while gross profit was 144.8 million baht, down 13.0%, as gross profit from electricity sales declined in line with main contract revenue and higher raw material costs per unit. Still, first-half results were supported by additional revenue under supplementary power purchase agreements, which rose by 8.9 million baht after the company renewed contracts and began recognising revenue from May 2568. Revenue from power plant management increased 5.6% to 37.3 million baht, and revenue from water and steam sales rose 1.5% to 26.6 million baht. In addition, other income increased to 13.0 million baht, mainly from recognition of 10.3 million baht in machinery insurance compensation in the first quarter of fiscal year 2569. Finance costs fell 39.5% to 9.1 million baht due to scheduled loan repayments. Administrative expenses for the first six months rose 50.4% to 48.9 million baht, mainly because of losses recognised from disposal of damaged machinery spare parts, some of which were offset by the insurance compensation income mentioned above. The company expects full-year 2569 operating results to decline from 2568 because machinery damage has affected electricity sales efficiency. However, it is in the process of improving the efficiency of its biomass power plants and moving ahead with investment expansion in community waste-to-energy power plants. During the first half of the year, TGE paid a dividend from its 2568 operating results at 0.00319 baht per share, with the stock trading ex-dividend on 6 May 2569 and the dividend paid on 22 May 2569.