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RATCH Group provisioned BHT11.3 Billion for new ventures in 2nd half of 2020, Realizing incomes from 3 newly operating power projects

  • Focusing investments in fossil fuel and renewable power projects in Indonesia and Vietnam to achieve remaining 530 MW as targeted
  • Incoming revenues to be recorded from the 60-MW NNEG power plant expansion phase, the 214.2-MW Yandin wind farm which are scheduled for commercial operation in September and November respectively, as well as the 620-MW Thang Long through ABIEF’s equity investment  
  • Announces 2.516.29 billion baht  profit before unrealized foreign exchange impact according to its first half operating performance of 2020

Nonthaburi – RATCH Group Public Company Limited furthers its investment plan to achieve the 780-MW target this year. In the first half, the Company has successfully expanded its capacity investment in four new power plant projects and the expansion of its existing power plant, resulting in equity generation capacity increase by 242.62 MW to 8,177.68 MW in total. For  infrastructure business, the Company has additionally injected 280-million baht capital in Smart Infranet Company Limited, a fiber optic network service provider with 51% stake holding, to be used for assets acquisition from ALT Telecom PCL., which will be its foundation for revenue generation onwards. For the first half operating performance of 2020, the Company posted the profit before unrealized foreign exchange effect of 2.516 billion baht, and the net profit of 2.435 billion baht, or 34.1% decreasing compare to the same period of 2019. It was impacted by unrealized loss of foreign exchange, declining revenue of Hongsa Power Plant and Ratchaburi Power Plant due to their scheduled maintenance outage. However, the Company’s revenues in the first half of this year has positively impacted from significant revenues of RATCH Cogeneration Power Plant taken over last year and Berkprai Cogeneration Power Plant, which commenced commercial operation in the mid of 2019.

Mr. Kijja Sripatthangkura, Chief Executive Officer of RATCH Group PCL., revealed that in the second half of the year the Company will begin to recognize revenues incoming from 3 projects- the expansion project of NNEG Power Plant with a 60-MW generation capacity and 10 tons per hour of steam distributed electricity and steam to industrial customers in Nava Nakorn Industrial Promotion Zone and there are nine industrial users entering the power purchase agreement, the Australia 214-MW Yandin Wind Farm dispatched power to Alinta Sales Pty Ltd under the power purchase agreement, and Vietnam Thang Long Thermal Power Plant invested through An Binh Energy and Infrastructure Fund (ABEIF). In addition, the Company is ongoing negotiate for joint investment in on-hand overseas fossil fuel and renewable power projects, especially in Indonesia and Vietnam, with capacity prospects by 400 MW which will enable the Company to achieve 537 MW this year as planned. Regarding the infrastructure business, the Company is planning to build and expand customer base in order to create income of the telecommunication joint venture companies namely; Smart Infranet Company Limited and Things on Net Company Limited, thanks to growing trend and prospect of telecommunication and digital technology business due to new normal following the COVID-19 crisis.

“According to the Company’s investment plan, RATCH expected to spend approximately 15 billion baht in new projects and existing joint-venture projects this year. In the first half of 2020, the Company already invested 3.7 billion baht, while the rest of 11.3 billion baht will be prepared for new projects acquisition in the second half. The Company’s financial status still shows strong enabling the Company to pursue future investment in order to create the Company’s enterprise value to achieve the business target of 200 billion baht by 2023,” Mr. Kijja concluded.   

For first half operating performance in 2020, the Company recorded 20.768-billion baht total revenues, consisting of revenues from sales, services and financial leases of 18.322 billion baht or 88.22%, profit sharing from joint ventures and dividends of 2.195 billion baht or 10.57%, and incomes from interest and others of 252 million baht respectively.

As of June 30, 2020, the Company has total asset of 105.446 billion baht, total liabilities of 46.332 billion baht, and the shareholders’ equity of 59.114 billion baht. The strong financial capability of the Company is reflected from the debt to equity ratio of 0.46 times, the debt service coverage ratio (DSCR) of 5.77 times, and the return on equity of 7.97%.              

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