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RATCH announces 2-year business plan and goal, pursuing 3 overseas projects and solar farm project for public sector in Thailand to increase the enterprise value and shareholders’ return

  • Join forces with existing partners to acquire 3 large projects in Indonesia, Lao PDR and China, with combined capacity of 4,400 MW approximately.
  • Proposing seven solar farms for public sector project in Thailand, with total capacity about 35 MW and two projects are expected to win.
  • Recorded 2.34-billion baht profit for first 9- month operating result.

Nonthaburi- Ratchaburi Electricity Generating Holding Public Company Limited announced its short-term business plan, with an aim to boost the enterprise value and maintain the shareholders’ return.  Three main approaches put in focus included exploring new investments, managing efficiency of main power plants and completing construction of new power plants as planned. The said plan will eventually push the enterprise value growth up to 188 billion baht in 2018.

Mr. Rum Herabat, RATCH CEO, said that the company planned to seek new project acquisitions during the next two years and prioritized the joint-venture with existing alliances and projects in its current operating bases in order to fasten consideration process and effectively manage well-rounded risk factors, thanks to market experience and insight.  The potential projects under process of feasibility study and negotiation included 2,000-MW JAWA7 in Indonesia, 400-MW Sekong 4 hydropower project in Lao PDR, seven solar farms projects for public sector in Thailand  with combine capacity of 35 MW and 2,000-MW power plant project in China.

“The company earnestly highlights those projects. For JAWA 7 project which is the synergy with Banpu Group and are already proposed for the project development and now it is under consideration process of Indonesian authorities. Additionally, we have signed the Joint Development Agreement with Lao World Engineering & Construction Co., Ltd. (LW), to develop Sekong 4 hydropower project. LW is a subsidiary of Thai world Power Group which is our partner in Ratchaburi World Cogeneration power plant. In addition, we joined hands with government agencies to apply for the solar farm projects for public sector. The seven proposed projects are located in the central and eastern regions of Thailand, with the total capacity of 35 MW. At least two projects are expected to win. Also, the company expects to enter into the joint venture agreement for the power plant project in China at the end of this year, marking our first step into China, a huge potential market,” Mr. Rum added.

According to the plan, the company continued focus on the key power plant efficiency management. During the first-nine months of 2015, the key power plants with combined equity capacity of 4,558 MW, including the investment in EDL-Gen’s securities can significantly generate revenues for the company. In managing their efficiency, the company emphasizes maintaining availability factor to ensure their generation meeting requirement of the power purchase agreement (PPA), managing the reliability factors to assure stability of the plants as per accepted standards and controlling fuel usage as specified by the PPA.

Construction management of new power plant is another focus in the plan. It is to ensure that all new power plants are able to commence commercial operation as scheduled in order to boost revenue growth and maintain shareholders’ return.  At present, there are six projects under construction: 626-MW unit 3 of Hongsa power plant (40% equity holding) with 95% construction progress scheduling for operation in 2016; 132-MW Nava Nakorn Cogeneration power plant (40% equity holding) targeting operation in 2016, with a 80% construction progress; the combined 33.51-MW two solar farm projects in Japan (60% equity holding) targeting operation in 2017; 410-MW Xe-Pian Xe-Namnoy hydroelectric power project (25% equity holding) targeting operation in 2019, with a 20% construction progress and 100-MW Berkprai Cogeneration power plant (35% equity holding) that is conducting environment impact assessment study. Meanwhile, 9.9-MW Songkhla Biomass power plant (40% equity holding) is recently operated. The total equity capacity of those projects is about 464.7 MW which can boost its enterprise value by 30.930 billion baht.

For financial position as of September 30, 2015, RATCH booked the 97.13-billion baht total asset, 45.11-billion baht retained earnings. Regarding the operational results for the first-nine months of 2015 (Jan.-Sep. 2015), the company recorded 2.34-billion baht profit, with the total equity capacity of 6,578.12 MW, divided into 6,117.31 MW for commercial operation projects and 460.81 MW for under construction and development projects.  

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