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RATCH prepared for new investment aboard driving its enterprise value to reach THB121 billion target in 2014

Nonthaburi: Ratchaburi Electricity Generating Holding Public Company Limited (RATCH) announced its investment progress in 2014 and business goal for 2015 that it aims to accomplish 2014 enterprise value target at THB 121 billion, increasing approximately 10% from previous year. RATCH was also considering for additional investment in eight potential projects aboard.

Mr. Pongdith Potchana, Chief Executive Officer of RATCH, said that the Company seriously runs business based on its 10-year strategic plan (2013-2023) by targeting enterprise value in the next ten years (2023) at THB282 billion. For the nine-month operating performance of 2014, the enterprise value surged from THB110 billion to THB119 billion and it is expected to achieve target at THB121 billion by the end of this year because RATCH has six projects on hands for consideration. RATCH’s equity investment would reach THB34 billion if the said investment decision is made. At present, the Company progressively undergoes the project study and negotiation process with business partners.

“Regarding to the redefined business strategy of the Company conducted at the end of 2013, the Company is aimed to become a leading value-oriented integrated energy company in Asia-Pacific and to enhance its enterprise value to THB282 billion or equivalent to 9,700 megawatts in generating capacity within 2023. Due to its well-established growth strategy framework, RATCH has met several achievements in 2014 as planned. The driving forces to value growth in 2014 mainly are from well management of quality and efficiency of existing assets and upcoming operating power plants scheduling in this year and 2015 with 839 megawatts combined equity capacity, four new invested projects with 59 megawatts total equity capacity, and potential projects on-hand in aboard. The Company has already provisioned sufficient capital for the said projects, if investment would be considered. Under the growth strategy, it is strongly confident that RATCH will extend its leading position from power generation to integrated energy company as its goal,” Mr. Pongdith added.

There are three new power plants operating during 2014-2015. It includes Ratchaburi World Cogeneration power plant (210 megawatts) whose unit 1 has been already operated this year and unit 2 will be operated in 2015, Hongsa Thermal power plant (1,878 megawatts) and Songkhla Biomass project (9.9 megawatts). However, the Company has another 2 power plants under construction including Nava Nakorn Electricity Generating project, and Xe-Pian Xe-Namnoy hydropower project in Lao PDR, with installed capacity of 122 and 410 megawatts respectively.

All five projects require the Company’s capital of around THB16.566 billion.

In addition, the Company has committed investment in 100-megawatt Rajaburi Cogeneration project located in Ratchaburi province, and is also negotiating to enter into a joint investment in the 9.98- megawatts refuse derived fuel power plant projects in Samut Prakan. For investment aboard, it has invested in two solar farm greenfield projects in Japan, with total installed capacity of 33 megawatts. The equity investment of the Company for those four projects is equivalent to THB1.213 billion.

RATCH endeavors to pursue investment in eight potential projects, including two power plant projects in the Republic of the Union of Myanmar, one power plant project in Vietnam, one renewable project in Australia, a solar farm project in Japan and 230 kV-transmission line project in Cambodia, a coal mine project in Indonesia and a fuel supply project in the Republic of the Union of Myanmar. Those are in process of project detail study, with attempt to reach the conclusion by 2015.

As a leading Independent Power Producer in Thailand, RATCH currently accounts the total installed equity capacity of 6,565 megawatts deriving from commercially operated projects of 5,561 megawatts and developing and construction projects of 1,004 megawatts which are located in four investment destinations namely; Thailand (4,936.5 megawatts), Lao PDR (1,096.5 megawatts), Australia (509.52 megawatts) and Japan (22.48 megawatts). As of 30 September 2014, the Company booked total assets of THB98.31 billion, total liabilities of THB36.42 billion and shareholders’ equity of THB61.89 billion. The retained earnings was also recorded at THB45.94 billion.

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