News

Business Outlook Bright as Stability Holds TRIS Rating affirms WHAUP at "A-"

BackOct 06, 2020

Bangkok – WHA Utilities and Power PLC. or WHAUP earned a company rating from TRIS Rating at “A-”, reflecting its business strength for both utilities and power. Its utilities business sees signs of growth after the relieved drought situation, while the power business continues to generate stable cash flow from power plants’ dividends with growth potential from consecutive commercialization of new solar rooftop projects.

Dr. Niphon Bundechanan, Chief Executive Officer of WHA Utilities and Power PLC (WHAUP), reveals that the company expects its performance in the second half of this year to improve from the first half for both utilities and power businesses after the droughts and the Covid-19 situation relieve. For the utilities business, major petrochemical customers now resume their normal operation while new customers commence their production activities, thus the water demand shall increase. This year, water sale volume in Thailand and Vietnam is expected to reach 120-130 million cubic meters after achieving 57 million cubic meters in the first half.

The company target to launch new innovative products and solutions, which will add value to its products and services continuously such as Reclaimed Water and Demineralized Water. During the first half of 2020, the company has commenced Reclamation Plant to produce the Premium Clarified Water with capacity of 5,200 cubic meters per day. In the fourth quarter of this year, the company also plans to commence the new Reclamation Plant which is the largest one in Thailand with the capacity of 25,000 cubic meter per day in WHA Eastern Industrial Estate (Map Ta Phut) and the Demineralized Water Plant Phase 2 for Global Power Synergy PLC (GPSC) in the WHA Eastern Industrial Estate (Map Ta Phut),

For the power business, WHAUP continues to expand its existing energy portfolio together with the development of new power solutions. Since early this year, the company has begun commercial operations of solar rooftop projects with power-generating capacity of 11 MW. It also plans to start commercialization of solar rooftop for industrial customers during the second half of this year for 15-20 MW. WHAUP shall reach a total installed equity power-generating capacity at 592 MW by the end of 2020, rising from 559 MW in 2019.

Besides, WHAUP and its partner are now testing the P2P Energy Trading Platform based on blockchain technology and together will offer new energy service in WHA Group’s industrial estates. Currently, the consortium are working on the API used to connect the platform with Provincial Electricity Authority (PEA)’s system. WHAUP plan to submit the test results of this pilot study as part of its application for Energy Regulatory Commission Sandbox project or ERC Sandbox, which shall have more developments by the fourth quarter of this year.

Recently, TRIS Rating affirmed the company rating at “A-“, reflecting the strong business performance, healthy financial status, stable dividends from investment in power business and the growth potential for utilities and alternative energy such as the expansion of utilities service to customers outside industrial estates and the use of technology and innovation to add business value for solar rooftop and waste-to-energy projects, as well as investment opportunities to acquire assets in both Thailand and abroad generating both organic and inorganic growths. These factors sustain WHAUP’s revenues and the share of profits which enhance the company liquidity and ability to pay debts and reserve as working capital.