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RATCH Group strived for overseas investment to boost 8,700 MW capacity in 2020, posted 4.157 billion baht profits in the first 9-month

Bangkok – Ratch Group Public Company Limited announced its ongoing power project investment to reach 8,700-megawatt capacity target in this year. At present, RATCH realized 8,173-megawatts equity capacity in total after achievement of five new-project acquisitions with combined equity capacity of 243 megawatts. For 9-month operating performance (from 1 January -30 September 2020), the company recorded profit of 4,157.21 million baht, dropped 17.8 % compared to same period of last year because of decease of main power plants’ revenues namely; Ratchaburi thermal power plants and Hongsa power plant. However, the company’s revenues overall is still strong due to income realization from 3 newly commercial operating power plants, and significant increase of profit sharing from Cogeneration power plants, solar power plants and biomass power plant.

Mr. Kijja Sripatthangkura, Chief Executive Officer of RATCH Group PCL, said that the company steady moves growth of core business, power generation, by increasing 780 megawatts to achieve target at 8,700-megawatt of total capacity this year. RATCH has five overseas projects with combined capacity around 500-600 megawatts under ongoing negotiation and conclusion would be this year. It expects that around 740-840 megawatt capacity will be achieved that will boost to 8,700 megawatt target eventually. In addition, the company has invested 10% equity in the Operation and Maintenance of Pang Pa In – Nakhon Ratchasima (M6) and Pang Yai – Kanchanaburi (M81) Intercity Motorway Projects expecting a Concession Agreement signing in December 2020. It also joins venture in wood pallet manufacturing plant with capacity of 60,000 ton per year in Lao PDR particularly to export to Japanese and South Korean industrial customers.

“This year, the Company has allocated a 15-billion baht investment budget for the ongoing projects and newly invested projects. Up to date, the company invested at 10.15 billion baht capital in 6 existing projects of 4.005 billion baht and 4 newly investing projects of 6.145 billion baht. In addition, the company has successfully issued 8-billion baht debenture for environmental conservation, with an average tenure of 11 years, and average interest rate of 2.45%. The 1.3 billion baht will be funded the Yellow-line and Pink-line electric monorail projects, and 6.7 billion baht used for Collector and Yandin wind farm projects in Australia. Not only it helps alleviate the financial costs, but it is also an alternative source of fund to support the company’s renewable energy investment goal and extended investment opportunities in clean transportation projects and waste management as well,” Mr. Kijja said.

The projects that have been successfully joint-invested in the past nine months include.

  1. The Thang Long Thermal power plant in Vietnam, with a capacity of 620 megawatts (22.05% stake in an acquisition), which commenced commercial operation since 2018.
  2. The Thanh Phong wind farm in Vietnam, with a capacity of 29.70 megawatts (51% stake), scheduled for commercial operation in the fourth quarter of 2021
  3. The NEXIF Energy Rayong power plant with a capacity of 92 megawatts (49% stake), scheduled for commercial operation in the second quarter of 2022
  4. The RATCH Cogeneration expansion phase with a capacity of 30 megawatts, scheduled for commercial operation in the third quarter of 2022
  5. The REN power plant with a capacity of 40 megawatts (40% stake), scheduled for commercial operation in 2023
  6. Establishing the SIPHANDONE-RATCH-LAO Company Limited in Lao PDR to operate the production and distribution of wood pellet, with 60,000 tons per year in capacity, located in Chapasak province, an area of 20,000 rai. The plant’s construction is estimated to be in 2021 and manufactured to export in 2022.
  7. The Operation and Maintenance project of the intercity motorway projects; M6: Bang Pa In – Nakhon Ratchasima and M81: Bang Yai – Kanchanaburi (10 % stake)

The targeted power plants that are under negotiation mostly are overseas projects, with total capacity of approximately 500-600 megawatts, comprising the Quang Tri 1 coal-fired power plant in Vietnam, the two projects of Hydro-electric power plant, and one project of the gas-fired power plant.

For 9-month operating performance in 2020, the Company recorded 30.403.12-billion baht total revenues, consisting of revenues from sales, services and financial leases of 26.636 billion baht, profit sharing from joint ventures and dividends of 3.333 billion baht, and incomes from interest and others of 432.93 million baht. The Company had a net profit of 4.157 billion baht, equivalent to 2.87 baht in earnings per share.

As of September 30, 2020, the Company has total asset of 110.910 billion baht, total liabilities of 50.925 billion baht, and the shareholders’ equity of 59.984 billion baht. The strong financial capability of the Company is reflected from the debt to equity ratio of 0.59 times, the debt service coverage ratio (DSCR) of 6.09 times, and the return on equity of 8.08%.

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