Gulf Energy Development Public Company Limited

Transcription

1 Management Discussion and Analysis of the Company s Performance For the Six Months Ended June 30, 2018 The Management Discussion and Analysis of the Company s Performance (the MD&A ) is intended to present and analyze the Company s results of operations and financial position at the end of the accounting period. Such information may change in the future. The MD&A is primarily prepared in Thai. In cases where the content in the translation contains any conflict or is interpreted differently from the Thai version, the Thai version shall prevail. For questions or queries, please contact our Investor Relations Department: Tel: +66 (0) or ir@gulf.co.th

2 Definition Company Group EGAT EPC GBL GBP GJP GMP GNC GNS GPD GSRC GTS1 GTS2 GTS3 GTS4 Gulf HK Gulf SG GUT GVTP IPD IPP Mitsui PEA QoQ SPP TFRIC 4 YoY The Company, its subsidiaries, its associates and its joint ventures The Electricity Generating Authority of Thailand Engineering, procurement and construction Gulf BL Co., Ltd., a power project operator under the subsidiary of GMP Gulf BP Co., Ltd., a power project operator under the subsidiary of GMP Gulf JP Company Limited, an associate in which the Company has a 40.0% equity interest Gulf MP Company Limited, a subsidiary in which the Company has a 70.0% equity interest Gulf NC Co., Ltd., a power project operator under the subsidiary GMP Gulf JP NS Co., Ltd., a power project operator under the associate GJP Gulf PD Co., Ltd., a power project operator under the subsidiary of IPD Gulf SRC Co., Ltd., a power project operator under the subsidiary of IPD Gulf TS1 Co., Ltd., a power project operator under the subsidiary GMP Gulf TS2 Co., Ltd., a power project operator under the subsidiary GMP Gulf TS3 Co., Ltd., a power project operator under the subsidiary GMP Gulf TS4 Co., Ltd., a power project operator under the subsidiary GMP Gulf International Investment (Hong Kong) Limited, a subsidiary in which the Company has 100.0% equity interest, and registered in Hong Kong Gulf International Holding Pte. Ltd., a subsidiary in which the Company has an indirect shareholding of 99.99%, and registered in Singapore Gulf JP UT Co., Ltd., a power project operator under the associate GJP Gulf VTP Co., Ltd., a power project operator under the subsidiary GMP Independent Power Development Company Limited, a subsidiary in which the Company has a 70.0% equity interest Independent Power Producer in which capacity sold to EGAT is more than 90 megawatts Mitsui & Co., Ltd. The Provincial Electricity Authority Comparison of performance between this accounting period and the previous quarter Small Power Producer in which capacity sold to EGAT is more than 10 megawatts but not more than 90 megawatts Revenue recognition standard applied for the IPPs to record revenue from availability payment as income from financial lease Comparison of performance between this accounting period and the previous year 1

3 1. Executive Summary 1.1) Summary of the performance in Quarter 2 and the first six months of 2018 The Group s performance Consolidated financial information 2Q 17 1Q 18 2Q 18 Change 6M 17 6M 18 Change M.Baht M.Baht M.Baht % YoY % QoQ M.Baht M.Baht % YoY Profit attributable to owners of the parent ,707.7 (438.0) N.A. N.A. 1, , % Less: gain (loss) on exchange rate from subsidiary Less: gain (loss) on exchange rate from share of profit (loss) from an associate and a joint venture Profit attributable to owners of the parent before gain (loss) on exchange rate ( Core profit ) (467.6) N.A. N.A (120.8) N.A (765.3) N.A. N.A (160.1) N.A % 5.2% , % The Company had core profit from the Group s operations in Quarter 2, 2018 ( 2Q 18 ) of million baht, an increase of 5.2% QoQ and 104.8% YoY, and has core profit in the first six months of 2018 ( 6M 18 ) of 1,550.7 million baht, an increase of 124.2% YoY. The continuous increase in profit was primarily due to the gradual commencement of commerical operations of power projects under GMP and an increase in sales of electricity, steam and chilled water to both EGAT and industrial users of the SPPs under GMP and GJP. Such increase in sales of electricity, steam and chilled water also resulted in greater efficiency of power plant operations and improved heat rate of SPP in both groups. GMP, the operator of 12 gas-fired SPPs In 2Q 18, the Company was able to recognize profit from sales of electricity and steam of the six power projects which had begun commercial operations, namely GVTP, GTS1, GTS2, GTS3, GTS4 and GNC, for the full quarter compared to in 1Q 18 when the Company recognized the full- quartered profit of the first five power projects that gradually began operations between May 2017 and January 2018, but recognized profit from GNC, which began operations in March 2018, for only one month. In addition to the positive factor from the increasing number of power projects gradually commencing operations, in 2Q 18, GMP also benefitted from an increase in the number of industrial users and higher demand for electricity and steam consumption from its existing customers. The volume of electricity sold increased by approximately 8.9% QoQ and the volume of steam sold increased by approximately 40% QoQ. Furthermore, the first five power projects located in industrial estates in Rayong also had a continuous increase in electricity sales to EGAT. The increase in the volume of electricity and steam sold by all the power projects helped to improve efficiency of the power plants operations and continually improved GMP s average heat rate by approximately 0.6% QoQ and 3.3% YoY. GJP, the operator of 2 gas-fired IPPs and 7 gas-fired SPPs In 2Q 18, GJP had an improved core profit. Although in 2Q 18 GNS shut down for planned maintenance for about 18 days, during which it was able to perform the maintenance as scheduled. In the meantime, SPPs under GJP also performed better operaitons with higher sales of electricity, steam and chilled water to both EGAT and industrial users of approximately 0.8% QoQ. As such, in 2Q 18, GJP Group recognized share of profit from an associate and a joint venture of million baht compared to million baht in 1Q 18 or an increase of 1.7% QoQ. Considering the performance that includes gain ( loss) on exchange rate, the Company had a net loss attributable to the Company in 2Q 18 of million baht and a net profit attributable to the Company in 6M 18 of 1, million baht as the Group incurred loss on exchange rate in 2Q 18 and 6M 18 of 1, million baht and million baht, respectively. Gain ( loss) on exchange rate represented unrealized gain/ ( loss) on foreign currency translation of the foreign transactions which has majority in the translation of the U.S. dollar ( USD ) loan with the FX rate by end of accounting period (exchange rate as of December 31, 2017, March 31, 2018 and June 30, 2018 were , and Baht/USD respectively). Gain (loss) is recorded in the proportion of the 2

4 Group s holding in subsidiaries and associates within the power business using the concept under the accounting standard and did not have a real impact on the Group s cash flows and operating performance. 1.2) Overview of key events in Quarter 2, 2018 Investment in power projects in Vietnam In April and May 2018, the Company s Board of Directors passed a resolution approving Gulf SG, a subsidiary in which the Company indirectly holds shares, to invest in two solar power projects in Vietnam, namely TTCIZ-01 and TTCIZ-02 through holding 49% of shares in TTC Green Energy Investment Joint Stock Company and TTC Energy Development Investment Joint Stock Company, respectively. Gulf SG advanced 20% of the share subscription payment and will pay the remaining when the counterparty meet certain conditions as prescribed in the share purchase agreement. On August 9, 2018, Gulf SG paid the remaining share subscription payment for TTCIZ-01. The TTCIZ-01 power project, with an installed power generation capacity of approximately 65.8 megawatts, and the TTCIZ-02 power project, with an installed power generation capacity of approximately megawatts, will require a total project cost of approximately US$65.9 million and US$53.4 million, respectively. IPD calling for share subscription payment and loans from shareholders to pay off GSRC and GPD s loans In March 2018, IPD s Board of Directors passed a resolution to call for additional share subscription payment, amounting to 1,200 million baht, and another resolution for borrowing from shareholders, amounting to 1, million baht, of which the Company paid- up the total capital in proporation to its shareholding, amounting to million baht, and paid for the lending in proportion to its shareholding, amounting to million baht, in April In the same month, IPD injected the two combined amounts, totaling 2,283.0 million baht, in a capital increase for GSRC and GPD to pay off loans from financial institutions, which were borrowed for investments in land to develop the GSRC and GPD power projects. Company s 2018 dividend payment to shareholders In April 2018, the Company s shareholders passed a resolution to pay dividend from the Company s result of operations for the year ended December 31, 2017 at a rate of 0.40 baht per share for the 2,133.3 million ordinary shares, amounting to million baht. The dividend was paid to the shareholders in May Company receiving dividend from its associate, GJP In April 2018, the Company received dividends from its associate, GJP, which was paid out of GJP s result of operations in Quarter 4, 2017 and Quarter 1, 2018, amounting to 1,947.1 million baht in proportion to the Company s shareholding of 40.0%. 1.3) Progress of projects under construction and development in Quarter 2, 2018 Six gas-fired SPPs under GMP in the process of construction had progressed slightly faster than the construction plan, with the progress ranging from approximately 73%-99%. The Company expects that GBL, with an installed power generation capacity of megawatts, and GBL, with an installed power generation capacity of megawatts, will be able to begin commercial operations as scheduled on September 1, 2018 and November 1, 2018, respectively. This will result in an increase in the Group s total installed power generation capacity on an equity basis of megawatts, from 2, megawatts to 2, megawatts by the end of The biomass SPP, with an installed power generation capacity of 25.0 megawatts, located in Chana district, Songkhla province has started construction as planned with progress at around 4%. Two natural gas distribution ( NGD) projects for sales to clients in Hemaraj Eastern Seaboard Industrial Estate has advanced with progress at around 65% and 40%, respectively. 3

5 The solar power project TTCIZ- 01 in Vietnam has started construction activities in the process of land clearing and piling in May 2018 in accordance with the defined plan. Project finacing for GSRC ( an IPP with an installed power generation capacity of 2,650 megawatts) showed satisfactory development, attracting considerable attention from domestic and international financial institutions. The Company has received preliminary offers for the interest rate better than anticipated and expects to sign the financing agreements and acheive the drawdown in Quarter 4,

6 2. Analysis of the Group s Results of Operations for the Six Months Ended June 30, 2018 The Group s results of operations Consolidated financial information 2Q 17 1Q 18 2Q 18 Change 6M 17 6M 18 Change M.Baht M.Baht M.Baht % YoY % QoQ M.Baht M.Baht % YoY Revenue from sales , , ,031.2% 17.4% , ,983.9% Revenue from management fee % 0.0% % Cost of sales (290.0) (2,484.3) (2,929.2) 909.9% 17.9% (291.3) (5,413.6) 1,758.5% Cost of management fee (48.2) (45.7) (53.1) 10.1% 16.3% (100.8) (98.8) -2.0% Gross profit , ,380.5% 14.5% , ,102.8% Other income % -83.4% % Interest income % 42.2% % Dividend income % N.A % Share of profit (loss) from an associate and a joint venture 1, ,300.0 (58.9) % % 2, , % Administrative expenses (332.9) (230.2) (397.9) 19.5% 72.9% (470.9) (628.1) 33.4% Finance costs (325.7) (470.3) (441.9) 35.7% -6.0% (608.2) (912.3) 50.0% Corporate income tax benefits % 77.4% % Gains (losses) on exchange rate (819.0) N.A. N.A (210.5) N.A. Profit for the period ,165.5 (554.1) N.A. N.A. 1, , % Profit attributable to owners of the parent ,707.7 (438.0) N.A. N.A. 1, , % Less: gain (loss) on exchange rate from subsidiary Less: gain (loss) on exchange rate from share of profit (loss) from an associate and a joint venture Profit attributable to owners of the parent before gain (loss) on exchange rate (467.6) N.A. N.A (120.8) N.A (765.3) N.A. N.A (160.1) N.A % 5.2% , % 5

7 Revenue structure Stock Exchange of Thailand s calculation method 2Q 17 1Q 18 2Q 18 Change 6M 17 6M 18 Change M.Baht M.Baht M.Baht % YoY % QoQ M.Baht M.Baht % YoY Revenue from electricity sold to EGAT and PEA , , ,167.4% 18.8% , ,216.0% Revenue from electricity sold to industrial users % 9.0% , ,315.9% Revenue from steam sold to industrial users ,072.0% 48.6% ,260.7% Revenue from management fee % 0.0% % Share of profit (loss) from an associate and a joint venture 1, ,300.0 (58.9) N.A. N.A. 2, , % Interest income % 42.2% % Other income % -83.4% % Revenue from operations 1, , , % -15.9% 2, , % Gain on exchange rate, net N.A. N.A N.A. Total revenues 1, , , % -25.4% 3, , % Power project under subsidiary GMP Commercial operation date Volume of electricity sold (Gigawatt-hour) Volume of steam sold (Ton) EGAT Industrial users Industrial users 1Q 18 2Q 18 1Q 18 2Q 18 1Q 18 2Q 18 GVTP May 16, , ,277.1 GTS1 July 8, , ,932.1 GTS2 September 1, , ,360.8 GTS3 Novomber 1, , ,464.7 GTS4 January 1, , ,176.0 GNC March 1, , ,698.7 Total , ,909.4 Revenue from sales of electricity and steam of SPPs under GMP for the six months ended June 30, 2018 GVTP 1,268.6 MB GTS1 1,384.6 MB GTS2 1,355.9 MB GTS3 1,259.1 MB GTS4 1,324.6 MB GNC MB 1% 5% 5% 2% 3% 2% 25% 25% 23% 19% 23% 9% 74% 70% 72% 78% 74% 89% 6

8 Revenue from sales Revenue from sales in 6M 18 was 7, million baht, an increase of 6, million baht or 1,983. 9% YoY as the Goup recognized revenue from electricity sold to EGAT and revenue from electricity and steam sold to industrial users from six gas-fired SPPs under GMP, namely GVTP, GTS1, GTS2, GTS3, GTS4 and GNC, which gradually began commercial operations between May 2017 to March Whereas, in 6M 17, the Group recognized revenue from sales of electricity and steam of GVTP, which was the only power project that began commercial operations in the first six months of Revenue from sales in 2Q 18 was 3,944.5 million baht, an increase of million baht or 17.4% QoQ as GNC, which began commercial operations for only 1 month in 1Q 18, started to recognize full-quartered revenue in 2Q 18 and all power projects under GMP had an increase in volume of electricity and steam sold in 2Q 18 from an increase in number of industrial users and demand of electricity and steam consumption. Revenue from management fee Revenue from management fee in 6M 18 was million baht, an increase of million baht or 46.8% YoY as the Company and GJP agreed to amend the structure of their Secondment Agreement by entering into another agreement, the Major Maintenance Service Agreement for the power projects under GJP at the end of 2017, resulting in an increase in the management fee. While, in 2018, the Company will recognize fixed management fee at a monthly rate of 25.0 million baht, resulting in stable management fee of 75.0 million in 1Q 18 and 2Q 18. Cost of sales Cost of sales in 6M 18 was 5,413.6 million baht, an increase of 5,122.3 million baht or 1,758.5% YoY as the Company had an increase in cost of production and sales of electricity and steam from SPPs under GMP, which began commercial operations. Approximately 80. 4% of the total cost of sales came from fuel cost, in which average gas price of the SPPs in the first six months 2018 was around baht per million BTU. Cost of sales in 2Q 18 was 2,929.2 million baht, an increase of million baht or 17.9% QoQ due to an increase in volume of electricity and steam produced and sold in 2Q 18 from the 6 SPPs under GMP, whereas average gas price increased from around baht per million BTU in 1Q 18 to around baht per million BTU in 2Q 18 Cost of service Cost of service is the cost of management services that the Company provided to the associate GJP. In 6M 18, cost of service was million baht, a slight decrease of million baht from the same period in previous year. The decrease was caused by the Company s ability to allocate personnel of the management services for GJP more efficiently, resulting in a lower cost of management services for GJP. However, cost of service had increased 10.1% QoQ from 45.7 million baht in 1Q 18 to 53.1 million baht in 2Q 18 as the Company had the annual compensation adjustment for the management and employees in 2Q 18 and there was an increase in number of personnel of the power projects under GMP. Gross profit The Group s gross profit in 2Q 18 was 1,037.2 million baht, an increase of million baht or 14.5% QoQ, with gross profit margin of sales at 25.7% and gross profit margin of service at 29.2%. Whereas, in 6M 18, the Group s gross profit in 6M 18 was 1,942.7 million baht, an increase of 1,882.1 million baht or 3,102.8% YoY, with gross profit margin of sales at 25.9% and gross profit of service at 34.2%. Other income Other income 6M 18 was 7.2 million baht, a decrease of 13.9 million baht or 65.8% YoY as in 6M 17, the Company received compensation from an EPC contractor from the delay liquidated damages of GVTP, which was a non- recurring item, amounting to million. 7

9 Interest income Interest income in 6M 18 was million baht, an increase of million baht or % YoY as the Company had an increase of cash, cash equivalents and short-term investment of 13,275.9 million baht from previous year, which was a result of the IPO in November Dividend income Dividend income in 6M 18 was 59.0 million baht, a decrease of 5.0 million baht or 7.8% YoY. The decrease was a result of lower dividend paid from SPCG, in which, as of June 30, 2018, Gulf HK holds 8.38%. Share of profit from an associate and a joint venture The Group s share of loss from an associate and a joint venture, after adjustment of TFRIC 4, in 2Q 18 was 58.9 million baht, a decrease of 1, million baht QoQ from the share of profit from an associate and a joint venture of 1, million baht in 1Q 18. While, in 6M 18, the Group s share share of profit from an associate and a joint venture of 1, million baht, a decrease of 1, million baht YoY. The decrease was primarily caused by change in the exchange rate used for marking- to- market long- term loans denominated in foreign currency of the associate GJP as at the end of the accounting period. In 2Q 18, the Group had loss on exchange rate of million baht, compared to gain on exchange rate of million baht in 1Q 18. In 6M 18, the Company had loss on exchange rate of million baht compared to gain on exchange rate of million baht in 6M 17. The Group s results of operations Consolidated financial information 2Q 17 1Q 18 2Q 18 Change 6M 17 6M 18 Change M.Baht M.Baht M.Baht % YoY % QoQ M.Baht M.Baht % YoY Share of profit from an associate and a joint venture Less: gain (loss) on exchange rate from share of profit (loss) from an associate and a joint venture Share of profit from an associate and a joint venture before gain (loss) on exchange rate ( Core profit ) 1, ,300.0 (58.9) N.A. N.A. 2, , % (765.3) N.A. N.A (160.1) N.A % 1.7% 1, , % Considering share of profit from an associate and a joint venture before gain ( loss) on exchange rate, in 2Q 18, the Group had share of profit from an associate and a joint venture before gain (loss) on exchange rate amounting to around million baht, an increase of 11.5 million baht or 1.7% QoQ. Although in 2Q 18, GNS shut down for planned maintenance for about 18 days, on which it could performed the maintenance as scheduled, and GUT had a decrease in amount of electricity dispatched by 73.6% QoQ and 81.2% YoY, both IPPs continued to receive full availability payment as prescribed in the power purchase agreements. In addition, SPPs under GJP also had higher amount of electricity, steam and chilled water sold from an increase in number of industrial users by approximately 5.1% compared to that of 2Q 17. In 2Q 61, the Group recognized share of profit from an associate and a joint venture by an increase of 1.7% QoQ and a decrease of 15.1% YoY as GUT shut down for planned maintenance for only about 10 days in 2Q 17 compared to GNS which shut down for planned maintenance for about 18 days in 2Q 18. 8

10 2Q 17 1Q 18 2Q 18 6M 17 6M 18 IPPs Volume of electricity sold (gigawatt-hour) GNS 1, , , ,990.2 GUT , Total 2, , , ,838.2 SPPs Volume of electricity sold to EGAT (gigawatt-hour) 1, , , , ,258.1 Volume of electricity sold to industrial users (gigawatt-hour) Volume of steam sold (ton) 65, , , , ,547.6 Volume of chilled water (refrigeration ton) 6,359, ,462, ,793, ,454, ,459,540.6 Administrative expenses Admintistrative expenses in 6M 18 was million baht, an increase of million baht or 33.4% YoY as the Company incurred an increase in personnel expenses of the power projects under GMP, in the construction phase. In 2Q 18, administrative expenses was million baht, an increase of million baht or 72.9% QoQ, which was mainly driven by an annual adjustment of the management and employees compensation, consulting fees for the development of future projects and advertising and marketing expenses. Finance costs Finance costs in 6M 18 was million baht, an increase of million baht or 50. 0% YoY. Although the Company gradually paid off loans from financial institutions after the IPO, causing a decrease in finance costs, the Group s finance costs in 2Q 18 continued to increase as the six power projects under GMP, which gradually began commercial operations, changed their accounting record method from recording interest expenses as capitalized assets before the commercial operation period to recording as finance costs after the beginning of commercial operation. Gain (loss) on exchange rate The Group incurred loss on exchange rate in 6M 18 of million baht, while experienced gain on exchange rate in 6M 17 of million baht. The change in effect on exchange rate was caused by an increase in loans denominated in foreign currency of power projects under GMP, and because Thai baht depreciated against U.S. dollar from THB/USD as at the end of December 2017 to THB/USD as at the end of June Profit attributable to owners of the parent Although the Group had a constant increase in net profit from the Group s operations before gain (loss) on exchange rate (Core profit) with a Core profit of approximately million baht, an increase of 5.2% QoQ and 104.8% YoY, and has core profit in 6M18 of 1,550.7 million baht, an increase of 124.2% YoY, considering the performance that includes gain (loss) on exchange rate, the Company had a net loss attributable to the Company in 2Q 18 of million baht and a net profit attributable to the Company in 6M 61 of 1,269.7 million baht as the Group incurred loss on exchange rate in 2Q 18 and 6M 18 of 1,232.9 million baht and million baht, respectively. Gain ( loss) on exchange rate represented unrealized gain/ ( loss) on foreign currency translation of the foreign transactions which has majority in the translation of the U. S. dollar ( USD ) loan with the FX rate by end of accounting period ( exchange rate as of December 31, 2017, March 31, 2018 and June 30, 2018 were , and THB/ USD respectively). Gain ( loss) on exchange rate is recorded in the proportion of the Group s holding in subsidiaries and associates within the power business using the concept under the accounting standard and did not have a real impact on the Group s cash flows and operating performance. 9

11 3. Analysis of the Group s Financial Position as of June 30, 2018 Finanical position As of Dec 31 As of Jun 30 Change M.Baht M.Baht M.Baht % Cash, cash equivalents and short-term investment 20, ,741.8 (2,480.4) -12.3% Investments in an associate and a joint venture 20, ,840.7 (597.9) -2.9% Advance payments for land and power plant construction 1, , % Property, plant and equipment, net 50, , , % Other assets 7, , % Total assets 100, , , % Accounts payable for power plant construction 2, , , % Short-term interest-bearing debts 3, ,956.7 (1,075.6) -35.5% Long-term interest-bearing debts 53, , , % Other liabilities 2, , % Total liabilities 61, , , % Issued and paid-up capital 10, , % Share premium 20, , % Unappropriated retained earnings 1, , % Non-controlling interests 4, , , % Other components of equity 1, ,020.4 (53.6) -5.0% Total equity 39, , , % Assets Total assets as of December 31, 2017 and June 30, 2018 was 100,651.9 million baht and 106,829.3 million baht respectively, an increase of 6,177.3 million baht or 6.1%. The increase was due to an increase in property, plant and equipment, net of 7,740.0 million baht and an increase in advance payment for land and power plant construction of million baht, resulting from an increase in value from the construction of GMP s power projects. However, an increase in the assets as mention above reflected to cash and cash equivalents including short-term investment decreased of 2,480.4 million baht Liabilities Total liabilities as of December 31, 2017 and June 30, 2018 was 61,303.7 million baht and 65,046.7 million baht respectively, an increase of 3,743.0 million baht or 6.1%. The increase was primarily due to drawdown of long-term loans by the SPPs under GMP to finance construction costs and expenses of the power projects as well as an increase in accounts payable for power plant construction. Long-term loans from financial institutions to cover expenses of the power projects net increased by million baht, net and accounts payable for power plant construction increased by 2,256.8 million baht. 10

12 Due date The table shows the debt profile of the Group s long-term borrowings as of June 30, Long-term borrowings in the Group s consolidated financial statements as of June 30, 2018 Company IPD GMP Thai Baht (Million Baht) Gulf Solar U.S. Dollar (Million U.S. Dollar) GCG Total GMP In 1 year - - 1, , years 6, , , Over 5 years , , Total 6, , , The table shows the debt profile of the GJP Group s long-term borrowings as of June 30, Long-term borrowings in GJP s consolidated financial statements as of June 30, 2018 Due date Thai Baht (Million Baht) U.S. Dollar (Million U.S. Dollar) In 1 year 2, years 10, Over 5 years 29, Total 43, ,069.6 Equity Total equity as of December 2017 and June 2018 was 39,348.3 million baht and 41,782.6 million baht, an increase of 2,434.3 million baht or 6.2%. The increase was primarily due to 1) an increase in non-controlling interests of Mitsui caused by an increase in paidup capital as well as an increase in profit of the power projects under GMP and IPD in proportion of the shareholding, resulting an increase of 2,167.9 million baht and 2) an increase in the unappropriated retained earning of million baht came from the net profit of company during period. As of June 2018, Debt to equity ratio of the Group was1.56 times. 11