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RATCH redefined business plan, focusing on new business and overseas investment for growth, 2.360-billion-baht profit posted for the first-half of 2016

  • Target 10,000-MW capacity by 2023 driven by business diversification and more energy-related investment in neighboring and Asia-Pacific countries 
  • Expand into new business at home by participating in electric train bidding, thanks to its engineering and electric power expertise
  • Profit sharing from the joint venture operations in the first-half 2016 increases by 121%, whereas the overseas revenues rise 8% over-year in line with the business plan.

NonthaburiRatchaburi Electricity Generating Holding Public Company Limited (RATCH) today announced its redefined business plan.  The company’s strategy for growth will shift its focus more on expansion into new business besides power and energy, and overseas investment. It targets to achieve the equivalent capacity goal of 10,000 MW by 2023, and 20-percent renewable energy capacity out of the target so as to serve the country's greenhouse gas reduction scheme. For the first-half 2016 operating results (January 1 - June 30, 2016), the company recorded the 2.360-billion-baht profit, increasing by 2.3% over the same period of last year.

Mr. Rum Herabat, RATCH Chief Executive Officer, said that RATCH’s growth strategy in the revised plan will heavily emphasize on growth creation, securing existing operations, and organizational competency enhancement. We will drive growth by seeking new markets for acquiring expansion in electricity and energy business as well as extending into new businesses. For Thailand, Lao PDR and Australia, our existing operations, the company will optimize returns of our commercially operated power plants and look for value-added business opportunity for future expansion.  Meanwhile, the enhancement of the company's competency will prioritize on project risk management in relations to our overseas investment ambition.

"Generally, we identify three groups for potential markets and overseas investment destinations: neighboring countries, including Myanmar and Cambodia seen as top priority due to benefit for the national power grid security; ASEAN nations, including Indonesia, Philippines and Vietnam; and Asia-Pacific countries, Japan and China. Basically, company is now negotiating and conducting feasibility studies for power projects, renewables and related businesses in the targeted countries. It is expected that many projects would be considered for decision this year. In Thailand, Lao PDR and Australia, the existing operating bases, the company formulates investment plan for renewable projects and new businesses. Particularly in Thailand, RATCH has decided to participate in the bidding for the Yellow and Pink lines of Monorail Electric Train project because of confidence in extensive engineering experiences and considerable expertise in electric power of our personnel fully enabling efficient management for this promising project. RATCH strongly believes that target of 10,000-MW capacity equivalent will be surely achieved as per the planned direction," said Mr. Rum.

In the first-six month performance of 2016, the company realized the additional capacity of 329.49 MW, which are 250.4 MW from Hongsa power plant, Unit 3; 55.65 MW from NNEG power plant and 23.44 MW from EDL-Generation Public Company. Additionally, four projects under construction, with total capacity of 359 MW are progressed as planned. The financial performance showed satisfactory results, thanks to the increase in profit sharing from the joint venture entities of 121%, amounted to 1.236 billion baht and the overseas revenue portion gradually grew to 8% of total revenues, amounted to 2.091 billion baht in line with the business plan, whereas the 4% growth was seen last year.

Additionally in the first half of 2016, the company posted the 27.399-billion-baht revenues which included 23.323-billion-baht electricity sales from Ratchaburi and Tri energy power plants. The cost and expense totaled 23.879 billion baht, decreasing by 12% from same period last year. As of June 30, 2016, the company booked 95.352-billion-baht total assets, 34.280-billion-baht liabilities, 61.072-billion-baht shareholder's equity, and 46.615 billion-baht retained earnings.

Under its current asset portfolio, RATCH owns a combined equity capacity of about 6,980 MW, comprising of 4,948.59 MW (71% out of the total capacity) from domestic projects and 2,031.42 MW (29%) from international projects. In terms of generation fuels, there are fossil fuel capacity of 6,085.97 MW, accounting for 87.19% out of a total capacity, and clean & renewable energy of 894.04 MW (12.85%). The company aims to increase the clean and renewable power portfolio to 20% out of the entire capacity goal of 10,000 MW by 2023.

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