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RATCH Group posted THB4.211 billion profits in 1H/2021, up 73% Anticipating income from 160MW of 2 projects in the 2nd half

Nonthaburi – RATCH Group Public Company Limited announced its operating performance for the first six months (January-June) of 2021. It recorded net profits of 4,210.70 million baht, increasing 72.9% from the same period last year. The good result is contributed by an increase in electricity sales of Australian power plants and profit sharing of joint ventures, and decrease of costs and expenses. In the second half of the year, the company expects revenue from two more power plants with combined equity capacity of 160.31 MW scheduling commercial operation in October this year; namely the 296.23-MW gas-fired Riau Combined Cycle power plant in Indonesia (49% equity holding) and the 29.70-MW Ecowin wind farm in Vietnam (51.04% equity holding), which will consequently strengthen the Company's financial position. For non-power business, the company has invested in equity of a healthcare service entity valued at 1,557.71 million baht.

Mr. Kijja Sripatthangkura, CEO of RATCH Group Public Company Limited, said that operating performance in the first 6-months demonstrated capable management in generation efficiency of the Group’s power plants as main assets for revenue stream. Accordingly, the company’s total equity 7,053-MW commercial capacity has contributed 18,948.66 million baht (of total 19,217.47-million baht revenues), of which 17,628.34 million baht revenues derived from conventional power plants and 1,320.32 million baht from renewable energy power plants. Investment in the first 6 months of this year has valued of 5,440 million baht in committed projects and new projects, namely 10% equity acquisition of Principal Capital Public Company Limited and the Ecowin wind power project in Vietnam. Furthermore, the company has entered into two joint ventures through a wholly owned RATCH-Lao Services Company Limited in Lao PDR, comprising of the wood pellet manufacturing project (25% equity holding) and Kasemrad Hospital International Vientiane (9.91% equity holding), which the payment will be made in the 3rd quarter.

“As core business, the company is striving for power project investment mainly in commercially operating power plants with an aim for immediate income. This year, RATCH targets 8,874-MW capacity increase, which additional 584-MW capacity is required to meet the target. Currently, the company is under ongoing negotiation for equity acquisition in several overseas conventional and renewable power projects. If succeeded, RATCH would certainly have more 970-MW commercial capacity and realize revenues immediately. To complete investment mission during 2021-2025, the funding planning is also prepared for both debt financing and capital increase ensuring achievement of 10,000-MW target, stabilized financial position and sustainable returns to shareholders,” said Mr. Kijja.

In the first half of 2021, the company realized a total installed capacity of 8,290 MW, of which consists of 5,879-MW gas-fired power plants (71%), 888-MW coal-fired power plants (11%), 488-MW hydroelectric power plants (6%), 720-MW wind power plants (9%), and 319-MW from solar, biomass and nuclear power plants (3%). The commercial capacity according to its equity holding recorded 7,053 MW and 1,237-MW under construction, of which 160-MW will be completed and dispatched in the fourth quarter of this year.

For the operating results of the period, the company booked total revenues of 19,217.47 million baht, comprising revenues from sales and services and from financial leases of power plants controlled by the company of 15,788.60 million baht, representing 82.2%, a profit sharing from joint ventures of 3,011.65 million baht, accounting for 15.67%, and interest income and others of 417.22 million baht.

As of June 30, 2021, the Company’s financial position booked total assets of 123,232.70 million baht, total liabilities of 57,118.07 million baht, and total shareholders' equity of 66,114.63 million baht. The company’s financial position is still strong reflecting by a net debt to equity ratio at 0.58 times, a debt service coverage ratio (DSCR) at 5.63 times, and a return on equity at 11.94%.

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