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To be a leading value-oriented integrated energy company in Asia-Pacific

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RATCH announces the leader change, pursuing integrated energy business in Asia-Pacific for growing its total shareholder return to 11.3% on par with leading regional energy companies

Bangkok- Ratchaburi Electricity Generating Holding Public Company Limited (RATCH) announced the change of Chief Executive Officer(CEO) and stressed its mission to enhance business growth to meet its long-term strategic plan. All committed projects will be continuously executed and the synergy with business partners will be carried out to enhance competitive advantage and broaden new business opportunity for increasing the enterprise value. Mr.Rum Herabat as officially appointed as RATCH’s CEO to replace Mr.Pongdith Potchana who will retire on September 30, 2015.

Mr.Pongdith Potchana said he had focused on seeking investment opportunity during the early period of his work in the CEO position. Nevertheless, both internal and external challenges had driven the company to revise its business plan by shifting a focus to integrated business into Asia-Pacific for enlarging business opportunity at the company’s expertise. Under the new business strategic plan, RATCH had paid more attention to synergy with both existing and potential business alliances, such as Banpu Group, Chow Steel Group, Chubu Electric Power Group and PTT Group for studying and developing international energy projects.

Mr.Pongdith further added, “Declining electricity consumption demand and expiration of the power purchase agreement of Ratchaburi power plant incoming in 2025 results in the business plan revisit for ensuring stable business growth over the long-term. Meanwhile, efforts to increase the annual enterprise value of 10% will help boost the total shareholder return up to 11.3% on par with leading regional energy companies, over its 9.8% at present. Firstly put into action in 2014, this plan will be carried outby the incoming CEO”.

Mr.Rum Herabat said that it will be a challenge to take up a post of RATCH’s CEO because the company is in transition to be an integrated energy company, with the aim to increase the enterprise value to 180 billion baht in 2018. Aside from making progress in current works and projects, he puts priority on five following issues into effect: 

  • Maximize current asset management in order to maintain profitability and reduce cost. The company assets can be mainly divided into three groups, including power plants aged 10 years and above, such as Ratchaburi power plant; power plants that have been commercially operated until those aged not over 5 years; and the under construction projects.
  • Extend investment overseas. The company will join forces with business alliances to enhance competitive advantage and seek for new and promising business opportunities. Also, RATCH will consider appropriate portion of merger & acquisition and greenfield investment to meet its short-term and long-term goals.
  • Leverage capital structure to add more enterprise value. The company will capitalize on lower debt to equity ratio for raising low-interest rate fund to support future investment and optimize its cash-on-hand over 17-billion-baht.
  • Underline human resource management. The company will develop personnel potentiality and competency for their greater skills and expertise and promote a well-adjusted personality in response to its strategy of business expansion overseas.
  • Adhere to corporate governance principle. It is necessary to develop its preventive anti-corruption mechanisms and system to meet the international standards, with a plan to gain assurance from the Private Sector Collective Action Coalition against Corruption (CAC) within 2016.

“I will further implement the company’s long-term strategic plan to achieve the enterprise value target to be on par with other leading energy companies in Asia-Pacific. The potential investment has to advance rapidly and asset management effectiveness will closely be monitored to ensure that the enterprise value will grow in line with its target and reach 282-billion-baht goal in 2023,” Mr.Rum added.

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