Information Memorandum of Glow Energy Public ... - Investor Relations

Attachment 4• Sales of steam to industrial customers by our cogeneration facilities amounted to Baht4,373.4 million in 2010, a 0.2 percent increase from Baht 4,366.2 million in 2009. Thisincrease was principally caused by 1.2 percent higher sales volume, despite lower gas price.• Sales of other products and services amounted to Baht 347.4 million in 2010, a 2.4 percent decrease from Baht356.1 million in 2009. This decrease was principally caused by volume sold lower by 2.4 percent.Other Income consists mainly of revenue from net exchange gains, interest income and other items.There was a net exchange gain in 2010 amounting of Baht 1,654.0 million while net exchange gain in 2009 was Baht557.9 million. This exchange gain was derived mainly from the US dollar denominated debt in Glow IPP, GHECO-One and Houay Ho Power which are being served by the US dollar-linked and US dollar revenue from sales ofelectricity to EGAT.GLOW ENERGY recognized interest income of Baht 73.7 million in 2010, an increase of Baht 13.5 million from Baht60.2 million in 2009. The interest income was principally attributable to interest earned on cash held in the form ofdeposits, instruments and in reserve accounts under our project financing agreements.Others income in 2010 amounted to Baht 494.2 million increased from Baht 402.9 million in 2009. In 2010, Othersincome included compensation on construction postponement from commercial operation delayed of CFB 3 projectamounted of Baht 293.2 million and additional insurance compensation from the unplanned outage of the 150 MWcoal-fired unit amounted of Baht 116.6 million, whereas such income in last year included the liquidated damage fromCFB 3 project amounted of Baht 77.0 million and insurance compensation of business interruption amounted of Baht223.3 million.As a result of the foregoing, total revenues in the 2010 amounted to Baht 37,878.8 million, a 6.6 percent increase fromBaht 35,525.0 million in 2009.ExpensesCost of sales of goods was Baht 7,297 million in the first quarter of 2011 compared with Baht 29,058.7 million in 2010,Baht 28,927.0 million in 2009 and Baht 28,361.0 million in 2008. The increase in expense in 2010 from 2009 wasattributable to the following factors:IPP facilities• IPP facilities’ cost of natural gas from Glow IPP was Baht 8,337.5 million in 2010, a 2.1 percent increase fromBaht 8,167.6 million in 2009. This increase was principally caused by higher fuel volume consumptionincreased by 4.3 percent, as a result of higher EGAT dispatch, despite lower gas price.• IPP facilities’ cost of diesel from Glow IPP in 2010 was Baht 6.0 million compared with Baht 0.8 million in2009.• IPP facilities’ maintenance costs were Baht 73.5 million in 2010 decreased by 4.9 percent mainly due to the Aand B inspection performed on the boiler and gas turbine of the Glow IPP in previous year.• IPP facilities’ depreciation and amortization costs were Baht 1,228.4 million in 2010, a 10.8 percent increasefrom Baht 1,108.7 million in 2009. This increase was due to the major maintenance in the first quarter 2009 ofGlow IPP as well as consolidation of depreciation and amortization of HHPC for the whole period of 2010,whereas in 2009 such consolidated costs was only from June to December.• IPP facilities’ other costs of sales of goods were Baht 332.0 million in 2010, a 40.2 percent increase from Baht236.8 million in 2009. IPP facilities’ other costs of sales of goods consist mainly of water, chemicals, andgeneral overhead costs, where overhead costs decreased slightly year on year.Cogeneration facilities• Cogeneration facilities’ cost of natural gas was Baht 13,437.7 million in 2010, a 3.2 percent decrease from Baht13,880.5 million in 2009. This decrease was principally caused by average gas cost to our Cogeneration facilitiesdecreased by 1.6 percent and gas consumption lower by 1.6 percent.• Cogeneration facilities’ cost of coal was Baht 2,010.4 million in 2010, a 0.3 percent decrease from Baht 2,016.7million in 2009. The decrease was principally because the reference coal price at FOB was decreased by 5.6percent, from 83.9 USD/ton to 79.2 USD/ton, despite the coal consumption increased by 13.2 percent from150 MW coal fired unit outage in the first quarter 2009.• Our cogeneration facilities’ maintenance costs were Baht 784.0 million in 2010, a 2.2 percent increase fromAttachment 4_Information Memorandum of Glow Energy Public Company Limited_clean.doc Page 17 of 18