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RATCH aims 7,500 megawatts investment expansion in 2017, announces 6.166- billion-baht profit of 2016, up 93%

  • Proposing the 2016 dividend payment of 3.408 billion baht (or 2.35 baht per share) for annual general meeting’s approval.

Nonthaburi - Ratchaburi Electricity Generating Holding Public Company Limited (“RATCH”) today announces its business direction for 2017, with an expansion plan in electricity and energy business as well as diversifying to non-power business. RATCH aimed to achieve the growth of 7,500 megawatts or equivalent, from the current operation capacity of 6,442 megawatts. The 10-billion-baht investment budget was provided to support the growth plan for this year. In addition, the company reported the 6.166-billion-baht profit for the 2016 operating results, rising 93% overyear.  

Mr. Rum Herabat, RATCH CEO, said that this year direction will focus on two drivers, including investment and asset's profitability in order to support the continuous and stable growth under the expansion goal of 7,500 megawatts, with effort to maintain the return on asset at 6%. Apparently, the company has highly potential projects in pipeline, with combined capacity of 1,100 megawatts or equivalent, plus 538 megawatts capacity for projects under construction and development. It is adequate to the support the growth target for this year.

"This year the company will diversify to non-power business to accelerate the growth and secure the source of revenues. Currently, RATCH owns the operation capacity of 6,442 megawatts. Including above said construction and development projects, the capacity will reach 6,980 megawatts. As a result, RATCH needs the additional capacity of 520 megawatts to meet our target. If the projects in the pipeline come to an end as planned, it is expected that the said goal can be achieved. The 10-billion-baht provision was prepared for funding the under construction and development projects and the new investments. The bright opportunity seems to lie ahead for Thailand, Lao PDR, Australia, Indonesia, Philippines and Myanmar," Mr. Rum said.

The company also planned to grow the renewable portfolio to 10% or 92 megawatts out of the 7,500-megawatt growth target, whilst the existing projects reach 658 megawatts. Our key investment destinations included Australia, Thailand and Lao PDR. On the part of asset management, the company will put effort more on power plant efficiency management by enhancing its reliability and availability for optimizing its profitability, especially for Ratchaburi power plant, Hongsa power plant and the cogeneration power plants (SPP). Meanwhile, the return on Asset (ROA) was targeted at 6% in 2017.

For the satisfactory operating performance in 2016, RATCH booked the 8.338-billion-baht profit before interest and tax expenses and 6.166-billion-baht profit, increasing 93% over year. The total revenues amounted to 51.280 billion baht which can be divided in to 93% (equal to 47.578 billion baht) from electricity sales and services, 6% (equal to 3.112 billion baht) from profit sharing from joint and associate companies and dividend, and the remainder from interest income and others.

On February 15, 2017, the Board’s meeting resolved to propose the 2016 dividend payment of 3.408 billion baht (or 2.35 baht per share) for all shareholders. This payment shall be approved by the annual general meeting of shareholders on April 5, 2017 and the payment was expected to be made on April 27, 2017. However, the interim dividend payment amounting to 1.595 billion baht, at the rate of 1.10 baht per share was already made on September 22, 2016.

For the financial position as of December 31, 2016, the company booked 96.391-billion-baht assets, 33.938-billion-baht liabilities, 62.453-billion-baht shareholder’s equity, 12.595-billion-baht cash and investment capital and 48.825-billion-baht retained earnings. RATCH also receives the “Baa1” Company’s credit rating from Moody’s Investors Service (Moody’s),“BBB+” from Standard & Poor’s (S&P) and “AAA” from TRIS Rating reflecting its potentiality and ability to raise fund at reasonable cost to drive future investment.

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