What To Know
- 6 megawatts, alongside the Bago wind farm in the Philippines, which is expected to begin operations in 2027 with a capacity of 150 megawatts.
- By strengthening its financial base and maintaining a clear expansion roadmap, SSP is reinforcing its position as a key regional player in the renewable energy sector.
Bangkok Business PR News: Major Asset Sale Boosts Financial Strength
Sermsang Power Corporation Public Company Limited (SSP) has secured a major financial win after completing the sale of its Yamaga solar power plant in Japan for over 1 billion baht, reinforcing its capital base and sharpening its long-term growth strategy. The transaction, valued at 4.97 billion yen or approximately 1.001 billion baht, involves a 34.5-megawatt facility and is expected to be finalized within the second quarter of 2026. The move reflects SSP’s strategy of recycling capital from mature assets into higher-growth opportunities across its expanding renewable portfolio.
Image Credit: Sermsang Power Corporation
Stronger Liquidity and Strategic Reinvestment
According to Chief Financial Officer Chayut Leecharoenkul, the deal will immediately enhance the company’s cash position and improve overall financial flexibility. This Bangkok Business PR News report emphasizes that SSP intends to use the proceeds to reduce interest-bearing debt while preparing for aggressive reinvestment into new renewable energy projects. The strengthened liquidity is expected to support working capital needs and provide a solid platform for expansion both domestically and internationally.
The company believes the transaction will unlock long-term shareholder value by improving financial efficiency while maintaining momentum in project development. With reduced debt pressure and improved cash flow, SSP is positioning itself to better navigate market volatility and capitalize on rising demand for clean energy solutions.
Dividend Payout Signals Confidence
In tandem with the sale, SSP’s board approved an interim dividend of 0.12 baht per share, with the ex-dividend date set for April 22, 2026, and payment scheduled for May 8, 2026. When combined with the previously proposed annual dividend of 0.205 baht per share for the 2025 fiscal year, total payouts will reach 0.325 baht per share. This move underscores the company’s commitment to delivering consistent returns to shareholders while continuing to invest in future growth.
Solid Portfolio Across Asia
Despite divesting the Yamaga project, SSP retains a strong foothold in Japan with three operational solar farms totaling 56 megawatts, all secured under power purchase agreements at 36 yen per kilowatt-hour. Across the region, the company’s total installed capacity stands at 332.8 megawatts, spanning Thailand, Vietnam, Mongolia, and Indonesia. This diversified footprint helps mitigate geographic risks while ensuring steady revenue streams.
Aggressive Expansion Pipeline Ahead
Looking forward, SSP is accelerating its development pipeline. By the fourth quarter of 2026, the company plans to commission two municipal waste-to-energy power plants with a combined capacity of 19.8 megawatts. Additional projects include three solar farms in Thailand totaling 108.6 megawatts, alongside the Bago wind farm in the Philippines, which is expected to begin operations in 2027 with a capacity of 150 megawatts. Further plans include more than 146.2 megawatts of additional capacity to be rolled out by 2030.
Positioned For Long-Term Growth
With a market capitalization of around 4 billion baht, SSP continues to benefit from strong investor interest in renewable energy, particularly amid global supply uncertainties and rising energy costs. The company remains focused on expanding its footprint while maintaining disciplined financial management and adhering to environmental, social, and governance principles.
This latest transaction reflects a balanced strategy of monetizing assets at the right time while reinvesting in future-ready projects. By strengthening its financial base and maintaining a clear expansion roadmap, SSP is reinforcing its position as a key regional player in the renewable energy sector. The company’s ability to combine immediate financial gains with long-term strategic planning is likely to sustain investor confidence and drive continued growth in the years ahead.
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