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RATCH Group’s confidence in power business growth after COVID-19 crisis heading to close power project’s deals overseas this year, posted 1,360.82 MB profit for Q1 operation

Nonthaburi: RATCH Group Public Company Limited (“RATCH Group”) moves forward to boost electricity business growth due to increasing electricity demand from the new normal activities that mainly requires electricity to function. The company is under ongoing negotiation for joint venture in several power plant projects in Asia-Pacific which are in its pipeline with combined installed capacity of approximately 800 megawatts and the conclusion is expected by this year. Recently, the company has successfully invested 888 million bath capitals in two domestic Small Power Producer (SPP) Cogeneration power plants. RATCH Group will make further investment in the fundamental infrastructure for the digital economy which is the next normal after COVID-19 crisis in the already invested business such as the Internet of Things (IoT) network.

For the first quarter of 2020, the company recorded 1.983 billion baht profit before unrealized foreign exchange loss, 16.5% higher than the first quarter of 2019. The profit after the foreign exchange loss in the first quarter booked 1.36 billion baht decreasing 21.8 % compared to same period last year.

Mr. Kijja Sripatthangkura, RATCH Group CEO, said that the company is striving for accomplishing electricity business growth at 10,000-megawatt capacity in 2023. It expects that increase of electricity demand after the ease about Covid-19 pandemic will result from the government's economic stimulus policies and the promotion for private investment in various industries. The medical and related healthcare industries in particular obviously show growth prospect. Moreover, the innovation and digital technology will be applied and play a key role in transforming business model and way of our life in the next normal where physical distancing is still required to mitigate the risk of infection of COVID-19 and emerging diseases in future.

“RATCH Group perceived Covid-19 pandemic as risk and opportunity. In aspect of risk, the company takes pandemic risk management and business continuity into the account ensuring economic and social impacts prevented and limited. For opportunity, we keep eyes on several investment potentials including Smart Grid project, green business, Independent Power Supply (IPS) project to accommodate the industrial sector. Also, extending the IoTs network to Business-to-Business, Business-to-Consumer business and Smart City are among the potential investment. The development of innovative solutions for the new normal targeting in both business and social living is accelerated by joining hands with EGAT Group. The company also invests in ‘Work From Home’ measure to upgrade and transform its internal procedures into a Smart Workplace by deploying interconnection technology for remote working of employees and supply chain. Several applications enabling all generations working from home are also employed. Consequently, individual working style seems to turn into digital teamwork which leads to increase work efficiency and reduce use of resources and operating costs,” added Mr. Kijja.

In the first quarter of 2020, the company realized growing revenues from joint venture shared 32.9% of total revenue. The result derived from better generation efficiency of Hongsa Thermal Power Plant and realization of full-year revenues from Berkprai Cogeneration Power Plant, Xepian Xe Namnoy Hydroelectric Power Plant and RATCH Cogeneration Power Plant.

Out of the recorded 4.506-billion-baht revenues in total, revenues from sale, service and financial lease or accounting was 2.925-billion-baht representing 64.9% of total revenues, profit sharing of joint venture companies and interest and other incomes were 1.480-billion-baht and 0.101-billion-baht respectively.

As of March 31, 2020, the company recorded total asset of 103.448 billion baht and liabilities of 44.440 billion baht and the shareholders’ equity of 59.007 billion baht. The company’s financial capability to fund 10,000 megawatt capacity target in 2023 reflected by key financial ratios; net debt to equity ratio of 0.46 times, the debt service coverage ratio of 7.73 times and return on equity of 10.66%.

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