December 8, 2022
  • December 8, 2022

Gunkul will see its revenue increase by 20%

By on November 26, 2021 0


Gunkul Engineering, a renewable energy development and construction company listed on SET, expects 20% growth in total revenue next year through its rooftop solar panel installation service as well than its construction and cannabis activities.

Gunkul chief executive Somboon Aueatchasai said the rate of revenue growth is similar to this year, despite the ongoing Covid-19 pandemic.

The main source of income in 2021 is an increase in power generation capacity, particularly the development of rooftop solar power under private power purchase agreements, as well as construction.

“We will be working on rooftop solar panel projects for businesses, including modern trade operators such as Charoen Pokphand Group, CJ Shop and Home Products Center Plc,” Somboon said.

Gunkul expects these operators to install up to 700 megawatts of solar panels. This level is expected to help the company surpass its target of 1 gigawatt of total power generation capacity by 2023, he said.

Gunkul operates renewable energy generation companies – wind and solar farms as well as rooftop solar panels – in Thailand, Malaysia, Vietnam and Japan, with a combined capacity of 642 MW.

In the construction segment, Gunkul has the potential for new projects worth 8 billion baht, mostly from utility projects, including those of the Bangkok Metropolitan Administration (BMA), said Mr. Somboon. These include the improvement of electricity transmission lines and the underground movement of electric cables and aerial telecommunications.

The government and the BMA have allocated 50 billion baht for projects to improve public services over the next two years.

Gunkul aims to bid on projects worth 7-10% of the baht 50 billion budget each year, he said.

To further develop its business, Gunkul has allocated capital expenditure worth 20 billion baht for 2021-2023. Up to 90% will go to renewable energy development, with the rest supporting other businesses, including cannabis and hemp.

Gunkul expects to receive a license for growing cannabis from the government after being allowed to build a hemp and cannabis processing plant.

As part of its business plan, full-year cannabis cultivation will lead to the production of 5.8 to 16.7 tonnes of cannabidiol (CBD) oil. CBD oil can be used for the treatment of many ailments.