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RATCH Group posts BHT5.65 billion profit, up 36% for 9-month of 2021, striving for investment in combined 1,054-MW capacity of 2 power projects, with anticipating immediate income and future business ventures

Nonthaburi – RATCH Group Public Company Limited announced its 9-month operating performance (January-September) of 2021. RATCH recorded a net profit of BHT5.649 billion, higher 35.9% from same period last year. The key factors driven previous nine-month earnings came from an increase of electricity sales of power plants in Australia and profit sharing from joint ventures, while operating costs and expenses decreased. In addition, the company has investment progress in two operating power plants with combined capacity of 1,054 megawatts anticipating stronger cash flow and financial position after the transactions complete. There also had investments in healthcare businesses in Thailand and Laos PDR with total value of about 1.7 billion baht, plus the joint investment with the Electricity Generating Authority of Thailand (EGAT) Group through INNOPOWER Co., Ltd., operating startup business related to electricity and energy innovation.

Ms. Choosri Kietkajornkul, Chief Executive Officer of RATCH Group Public Company Limited said that the past 9-month performance has satisfactorily been grown according to its target, not only operating profits rising impressively, but also new capacity acquisition of 1,054 megawatts tending to be achieved, and consequent to capacity increase to 9,346.35 megawatts over 8,874-megawatt target in 2021. This resulted of the acquisition of 45.515% stake of PT Paiton Energy, an operator two power plants with combined capacity of 2,045 megawatts, endorsed by the Extraordinary General Meeting of Shareholders on October 21, 2021, and the purchase of 51% ordinary and new issued shares of Sahacogen (Chonburi) Public Company Limited., the owner of 214-magawatt cogeneration power plant, two biomass power stations with combined capacity of 17.10 megawatts and solar rooftop business. The two transactions are expected to complete in the first quarter of 2022. The company is also seeking completion of investment in renewable energy project this year.

“RATCH emphasizes on equity acquisition of operating company in order to realize instant income, as well as extending partnership for future value-adding ventures. Apart from power generation business, the company has invested in non-power businesses with a total value of 11,689 million baht. It includes share acquisitions in Bangkok Aviation Fuel Services Public Company Limited, the wood pellet project in Laos PDR, Principal Capital Public Company Limited, Kasemrad Hospital International Vientiane, and INNOPOWER, operating electricity and energy innovative startup business. In this regard, RATCH has set non-power investment target at 20% of its total portfolio; infrastructure & other potential businesses. As a result, the BHT200,000-million enterprise value target is able to be succeeded in 2025”, concluded Ms. Choosri.

At present RATCH has realized 6,874.14-megawatt equity capacity from fossil-fired power plants, representing 84% of total capacity, and 1,305.21-megawatt installed capacity from renewable power plants, equivalent to 16%. By this year, realized commercial operating capacity is rising to 7,321.44 megawatts deriving from combined 123.33-megawatt capacity of Sahacogen and 145.15-megawatt Riau Combined Cycle Power Plant in Indonesia, scheduling dispatch at the end of this year.

For 9-month operating performance of 2021, RATCH recorded revenues of BHT29.824-billion, consisting of revenues from sales and services and income from financial leases of power plants controlled by the company of BHT24.931-billion, equivalent to 83.59% of total revenues, the profit sharing of joint ventures and dividends of BHT4.318-billion, accounting for 14.48%, and interest income and others of BHT575-million. The net profit amounted to BHT5.649-billion, representing earnings per share of 3.90 baht.

As of September 30, 2021, it booked total assets of BHT126,765.41 million, liabilities of BHT58,674.03 million and shareholders' equity of BHT68,091.38 million. The company still has strong financial potential given to net debt to equity ratio at 0.59 times, a debt service coverage ratio (DSCR) at 4.81 times, and return on equity at 11.69%.

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