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RATCH Group gears up investments to strengthen its business, concentrates on production cost management to curb fuel price impact, posted THB1,579 million profits in the first quarter

Nonthaburi - RATCH Group Public Company Limited announces its operating results in the first quarter of 2022. The Company enabled the two new investment projects, namely PRINC Hospital Sakon Nakhon and the Nava Nakorn Power Plant – Phase 3 expansion, with approximate capital investment of THB275 million. The first quarter of 2022 operating results remained robust despite the fuel price impact, with revenues of THB18,249.67 million higher 109.7% as a result of Ratchaburi Power Plant generating more electricity, and revenues from new acquired entities including Sahacogen (Chonburi) Public Company Limited, Fareast Renewable Development Pte Ltd., recently increasing shareholding in Asahan Hydroelectric Power Plant and Riau Combined Cycle Power Plant in Indonesia. In the first quarter, the Company's profit posted THB1,579 million decreasing 24.4% equivalent to THB 508.50 million, caused from one-time write-off deferred debt fees of its existing loans from debt refinancing in the amount of THB 225.73 million, and the recognition of the deferred tax expense of FRD, a subsidiary in Indonesia, in the amount of THB 337.70 million. Both items were the accounting transactions, which had no impact on cash flow of the Group. In addition, the Company plans to accomplish THB25 billion fund raising from the offerings of new issued shares, which will enhance the Company's capability even stronger.

Ms. Choosri Kietkajornkul, Chief Executive Officer of RATCH Group Public Company Limited said that the Company’s investment activity has been ongoing and consistent as planned, while asset management, especially for power plants has been concentrated on managing production cost risk from rising fuel prices. As result of closely supervision and monitoring, the Company is capable to reduce and curb the power plants’ impact at acceptable level, while their profit margin maintained. Additionally, the preparedness of THB25,000 million recapitalization is impressively progressed, on 12 May 2022, the Company announced final offered shares number of 725,000,000 shares, final offering price at 34.48 baht per share and final offering ratio at 2 existing ordinary shares to 1 new ordinary share. The subscription date is scheduled on 6-10 June 2022. The fund will be used for future investment in power generation with an annual plan of 700 megawatts and in non-power business for approximately 2,000 million baht annually, as well as for capital restructuring consequent to liquidity increase.

“This year, five power plants with combined equity capacity of 1,166.58 MW are scheduled to commercial operation that will boost the Company's revenue. Of which two power plants have already been operating commercially namely; 145.15MW Riau Combined Cycled Power Plant in Indonesia operating in February and contributing THB86.45 million profit sharing, and 45.08-MW Nexif Ratch Energy Rayong Power Plant operating in April 2022. The Company expects if the acquisition transaction of Paiton Thermal Power Plant in Indonesia completed in June, our income will be much steadier. For investment plan, the Company has ongoingly sought for new projects. Lately, 355MW Xekong 4A and 4B Hydroelectric Power project, a hydroelectric reservoir type in Lao PDR by the National Energy Policy Council (NEPC)’s meeting approved its electricity tariffs and the Tariff MOU with the Electricity Generating Authority of Thailand (EGAT) is expected to be entered soon. The 347.30 MW electricity of the project will be generated to the national grid in 2033 for 27 years. For non-power investment, healthcare business is our focus and expects projects under negotiation to be finalized within this year,” Ms. Choosri said.

At present, the Company recognizes total equity capacity of 9,203.77 MW, of which 59% (or 5,425.55 MW) based domestic and 41% (or 3,778.22 MW) based overseas. Classified by fuel type, it consists of fossil fired capacity of 7,844.03 MW and renewable power of 1,359.74 MW.

In 2022, the power plants scheduling commercial operation including Indonesia Riau Gas-fired Power Plant with 145.15MW equity capacity, Nexif Ratch Energy Rayong Gas-fired Cogeneration with 45.08MW equity capacity, Vietnam Ecowin wind farm with 15.16MW equity capacity, Gas-fired RATCH cogeneration- extension phase with 31.19MW equity capacity, and Indonesia Paiton Coal-fired Thermal Power Plant with 930MW equity capacity.

About operating result in the first three month of 2022, the Company recorded THB18,249.67 million of total revenues, THB17,298.34 million of total cost and expenses, and THB1,579.36 million profits.

As of March 31, 2022, the Company's financial position recorded total assets of THB155,216.69 million, total liabilities of THB74,431.37 million and shareholders' equity of THB80,785.32 million. The Company’s financial position is still strong proven by its net debt to equity ratio of 0.61 times and return on equity of 10%.

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