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RATCH posts 1.259 billion baht profits in Q1/2016, rising 8% NNEG’s revenue to be booked after commercial operation in June

  • Earnings  before interest and taxes (EBIT) were 1.895 billion baht, increasing 2% over year.
  • A 16% decline in cost and expense, especially for fuel cost and a 81% increase in revenue from profit sharing of joint ventures resulted in higher profit.
  • Business and investment strategy for domestic and international expansion were revisited to ensure further sustainable growth. 

Nonthaburi- Ratchaburi Electricity Generating Holding Public Company Limited (RATCH) reported the continuing growth of its operating performance for the first quarter of 2016. The profit was 1.259 billion baht, rising 8% over year. Earnings before interest and taxes (EBIT) were reported at 1.895 billion baht, increasing 2% from the first quarter of 2015. Efficient management of joint venture companies as well as cost and expense, particularly fuel cost helped support the growth of operating performance for this quarter. The company also expects to receive profit sharing from Nava Nakorn Electricity Generating (NNEG) project once commercially operated in upcoming June. 

Mr. Rum Herabat, RATCH’s Chief Executive Officer, said that the satisfactory operating results reflected the company’s effort to create sustainable growth. Aside from cost and expense management, RATCH focuses on five critical tasks this year; 1) Enhance efficiency of key power plants, such as Ratchaburi power plant and Tri Energy power plant, whose combined installed capacity was up to 4,345 megawatts, accounting for 64% of the entire installed capacity, 2) Monitor the performance of joint ventures assets, with less than 50% stake holding to ensure that sharing profit meets the projection, 3) Monitor and assure the punctuality of project’s completion for higher revenues 4) Revisit business strategy and goal to better suit the current business circumstances and competition at home and internationally 5) Pursue feasibility study of new projects in the pipeline and finalize decision as soon as possible for driving future corporate growth.  

“Due to drastic changes in business conditions and competitions, the company is now reviewing our business strategy plan that has been executed for three years, in order to better cope with internal and external environment. This will help redefine our investment directions for supporting the company growth. The plan was scheduled to be finished in the third quarter of this year. In addition, the company stresses the supervision on production efficiency and profitability of key asset and joint ventures, particularly Ratchaburi power plant, Tri Energy power plant and Hongsa power plant as they are the most valuable asset, with critical impact to the company’s performance. We now keep a close watch on the under-construction projects, such as NNEG where the construction is already completed and is in commissioning process, with commercial operation schedule in June. On the part of Xe-Pian Xe-Namnoi hydroelectric power plant in Lao PDR, the construction progress reaches 47% better than the established plan.” added Mr. Rum.       

In addition, there are new projects in process of feasibility study domestically and internationally. Most of them are greenfield projects, such as wind and solar farms in Australia, hydroelectric power plants in Lao PDR, biomass power plant and NNEG, phase II in Thailand. The company also tried to reach conclusion soon.

“Our performance continues to show solid growth. At this present, the capacity of invested projects totaled 390 megawatts that will gradually generate additional incomes for the company until 2019 and drive the operated capacity to 6,810 megawatts increasing from the current capacity of 6,416 megawatts. The company also seeks investment that offers reasonable returns by expansion into energy-related and non-energy businesses. RATCH is now conducting feasibility study for many types of non-energy business and prioritize in domestic market.    

For the first quarter of 2016, the company booked the total revenues of 13.796 billion baht, comprising the revenue from sales of Ratchaburi and Tri Energy power plant amounted to 11.410 billion baht or accounting for 83% of total revenues, the sharing profit of joint ventures amounted to 358 million baht or rising 81% and the cost and expenses totaled 11.931 billion baht, increasing by 15%, with a decline in fuel costs of 16%.

As of March 31, 2016, the company recorded the total asset of 92.115 billion baht, the liabilities of 30.083 billion baht, the shareholders’ equity of 62.032 billion baht, the cash and working capital of 7.950 billion baht and the retained earnings of 47.210 billion baht.

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