Thai Solar Energy Announces Strong Solar Power Sales, Results for FY2015

Construction News

Thai Solar Energy PCL (“TSE”; SET:TSE), a producer and distributor of solar power to the government sector, has announced financial results for the year ended December 31, 2015. Total revenue from sales and services was THB 128.9 million, an increase of THB 75.0 million, or 139.7%, on the previous year, driven by proceeds from 14 PV Rooftop projects, compared to 5 in 2014, contributing an increase in revenue from electricity of THB 75.8 million.

Total cost of sales and services in 2015 was THB 119.5 million, an increase of THB 31.3 million, or 35.5%, due to more staff and other costs of business expansion, and depreciation and roof rental fees from additional rooftop projects in operation. The company’s gross margin for 2015 was 7.3%, increasing from negative 63.6% recorded last year, due to greater commercial operations of PV Rooftops.

Total administrative expenses for 2015 were THB 88.0 million, an increase of THB 2.1 million, or 2.4%, caused by more staff and other costs of business expansion including professional fees for domestic and foreign business opportunities. Finance costs for 2015 were THB 27.8 million, a decrease of THB 1.5 million, or 5.1%, due to a partial loan repayment from IPO proceeds.

The Company invested in a jointly controlled entity which owns and manages a 80 MW solar farm. Operating profit for this entity in 2015 was THB 994.3 million, an increase of THB 252.0 million, or 33.9%, compared with the the previous year, as all power plants became operational in 2015.

Net profit for fiscal year 2015 was THB 526.6 million, with earnings per share of THB 0.30, a decrease of THB 54.7 million compared with net profit of THB 581.3 million and earnings per share of THB 0.41 in 2014. The decrease was due to an extraordinary accounting profit of THB 450 million in 2014 from a change in status of investments in subsidiaries, to jointly controlled entities, offsetting a loss on impairment for solar thermal of THB 250 million.

Net profit excluding extraordinary items in 2014 were THB 381.3 million, with earnings per share of THB 0.27, compared to net profits of THB 526.6 million in 2015, with earnings per share of THB 0.29, showing an increase of THB 145.3 million. Operating profits were stronger in 2015 due to expanded operations from 5 to 10 PV solar power plants and additional operations for rooftop projects.

Management has set targets for 2016 aimed at expanding the solar power plant business in Thailand and overseas. Negotiations to form alliances with solar power operators in projects with a total production capacity of 40-50 MW in Japan are currently underway, and should be finalized by mid-2016. These endeavors are directed at producing 100 MW of solar power in Asia this year, before refocusing on a production target of 300 MW over the next 3 years.

Mr. Tee Seeumpornroj, Cheif Financial Officer, TSE, says the Company has maintained continuous growth, with revenue of THB 129 million from its own power sales in 2015, a 139% increase on 2014. Further, TSE has a 60% stake in joint-investment project with PTT Group, capable of producing 80 MW, which is valued at over THB 1,500 million. Consolidating the two, the Company’s net profit was THB 526.6 million, a 38% increase compared to 2014 (not taking into account special items).

In this regard, the Company’s growth is quite remarkable, deriving from solar power plant operations, particularly the sale of power from solar farms. There are presently 10 projects altogether, with a total capacity of 80 MW, which are capable of generating a significantly higher quality and efficiency than promised, as well as commercial rooftop solar panel projects with a total capacity of 14 MW.

“2015 marked an great achievement for TSE, with solar power plant operations generating satisfying returns, in terms of revenue and profit margins, from projects totaling 98.5 MW, not including upcoming projects that will help strengthen our operating performance and enable steady growth,” stated Mr. Tee.

Dr. Cathleen Maleenont, Chief Executive Officer, TSE, stated “The Company will continuously be enhancing solar power generation capacity both in Thailand and overseas, and especially Japan where we have identified opportunities for investment among the number of solar farm projects in development. At the moment, the Company is in the process of negotiating with a few local business partners in order to invest in solar farm projects with a total capacity of 40-50 MW. Results of these negotiations will become final during the second quarter.

“At its most recent meeting, the TSE Board approved an investment and contractual agreement with Prospec Holdings Inc. for the construction of solar farms with an installed operating capacity of 17.5 MW in Hanamizuki and Ishikawa. The estimated budget for project development is approximately THB 2,000 million, with construction to begin during Q1/16, and expected completion in 2017. Currently, the combined capacity of TSE’s projects in Japan is about 42 MW.

“We are at the forefront of an expansion of renewable energy power plants in Asia, of both solar and other types of energy. Through collaboration in project development alliances, TSE will establish as a leading corporation in the energy business in Asia, especially in Japan and AEC member states. We have articulated a target production capacity of 100 MW for 2016, increasing to 300 MW over the next 3 years,” confirmed Dr. Cathleen.

About Thai Solar Energy PCL

Thai Solar Energy PCL, or TSE, was established in Bangkok in 2008, and is the first company in Southeast Asia to have effectively applied solar energy commercially. The Company supplies electricity to the government following the policies of the Energy Policy and Planning Office, Ministry of Energy to encourage production and consumption of renewable energy, and distributes electricity to the Provincial Electricity Authority (PEA) and Metropolitan Electricity Authority (MEA).

TSE was established by Thai national shareholders who together share the common goal of pushing the technological envelope for clean renewable energy, and harnessing this energy for the benefit of those communities that surround it. It was listed on the SET MAI (Market for Alternative Investment) on Oct 30, 2014, as SET:TSE. For more information, please visit

Source: Thai Solar Energy PCL

Contact: MT Multimedia Limited,
for Thai Solar Enegy PCL.
Thiyaporn Sriadulphan (Ta)
Tel. +66-2-612-2081 Ext.124
Mob. +66-87-556-6974
Email: thiyaporn.s AT