Gunkul Engineering projects higher revenue for 2021

Construction News

Gunkul Engineering projects higher revenue for 2021

Gunkul Engineering expects its 2021 revenue to grow by 15-20% from last year, thanks to new development projects in renewable energy, construction engineering services and electrical equipment trade.

The increase is similar to its 15% growth last year.

Gunkul’s chief executive Sopacha Dhumrongpiyawut said the main sources of revenue in 2021 will come from enhanced power generation capacity, particularly for solar and wind farms operated both domestically and overseas.

“We will have a full year of solar farm operations in Vietnam and Malaysia with total capacities of 100 and 30 megawatts, respectively. Rooftop solar panels for corporate clients will also generate an additional 50MW,” she said.

Gunkul is continuing to increase capacity, with plans to obtain licences to run a 200MW wind farm in Thailand, 400MW wind and solar farms in Vietnam and a 100MW solar farm in Taiwan.

Some 60-70MW of additional capacity will also come from new clients in the rooftop solar power business as many Thai firms move to reduce their monthly electricity expenses.

Gunkul has set a target to increase power generation capacity from renewable resources to 1 gigawatt from 597MW at present by 2023. Up to 85% of its 20-billion-baht capital spending set for 2021-23 period will support its renewable energy business.

In the construction sector, Gunkul plans to work for the Bangkok Metropolitan Administration and state utility agencies under the 28.8-billion-baht projects to improve power transmission lines and move overhead power and communication lines underground in 2021-23.

The company aims to win 3-3.5 billion baht contracts from these agencies each year.

Gunkul expects revenue from construction services will grow by 25% to 2.8 billion baht from 2.1 billion baht last year.

Ms Sopacha said more growth in construction services will lead to more revenue in Gunkul’s electrical equipment trade. The company targets 20% growth to 1.8 billion baht in the latter business this year.

The company said a major source of revenue in this segment will be the government, which plans to make electricity meters digital using a budget of 7-9 billion baht. The company is waiting for authorities to call for bids on this project.