Nonthaburi - RATCH Group Public Company Limited implements 3-S strategy: Strength-Synergy-Sustainability, to gear the company towards sustainable growth. The power and energy business remians the core driver for boosting revenue whist realization of an addition of 1,207.13 megawatts commercial capacity in this year. Besides, 35 billion baht budget was provisioned for more investment, of which 29 billion baht will be used for expanding power business and another 6 billion baht for non-power business. It expects the company's performance in 2023 will continue growing and earnings before interest, tax, depreciation and amortization (EBITDA) stays strong at no less than 12 billion baht.
Ms. Choosri Kietkajornkul, Chief Executive Officer, RATCH Group Public Company Limited said that according to the 2023-2027 strategic plan, the company strives for achieving four targets: (1) increasing returns for gearing EBITDA from 12 billion baht this year to 15 billion baht in 2027, (2) investing at least 5% of the budget in non-power business in 2023 with expectation of revenue generating by 5% in 2027, (3) increasing renewable capacity to 20% this year and 25% in 2025 onwards, (4) enahacing standardization of environmental, social and governance operation in line with international best practice and moving forwards to carbon neutrality commitment in 2027.
Due to interrelation of 3-S strategy: Strength-Synergy-Sustainability, the company still exercises it for creating sustainable growth. Following the S2: Synergy strategy, the company will foster partnership with our strategic alliances with an aim to accelerate the companys' competency in business competition and investment. In this regard, Nexif Rach Energy Investment (NREI), a joint venture will be an investment arm to continue the 8 in-pipeline projects in Australia, Vietnam and the Philippines with combined capacity of approximately 843 megawatts to accomplish commercial operation schedules. According to the company's generation capacity plan, there will be the scheduled commercial capacity of 518.66 megawatts in 2024 and 918.20 megawatts in 2025, 252.77 megawatts in 2027 and 213 megawatts in 2030. In addition, the company pursues investment potentials in Vietnam, Indonesia, and the Philippines where the national power development plans required a substantial increase in power generation, especially renewable energy projects and hydrogen fuel development. For non-power business, it will focus on healthcare business committedly partnering with PRINC group and innovation business driven through Innopower Co., Ltd. Additionally, green hydrogen development is underway of feasibility study and expects a pilot project initially started in Australia.
"The implementation of the sustainability and climate strategies will be implemented further to achieve the targets. This year, we target to reduce greenhouse gas emissions in our production process by 30,000 tons of carbon dioxide equivalent, increase renewable capacity to 20%, and develop carbon credits from community forests of 10,000 rai areas, whereby the company participate in the forest carbon credit management for sustainable development project of the Mae Fah Luang Foundation under the Royal Patronage," said Ms. Choosri.
Futhermore, commercial projects to generate the company's revenues this year include RATCH Energy Rayong power plant, Snapper Point gas-fired power plant, Lincoln Gap 1&2 wind farms in Australia, as well as Coc San, Song Giang 2 hydroelectric power plants, and Ecowin wind power plant in Vietnam. About transaction of Paiton Thermal Power Plant in Indonesia, the company expects to complete the deal in the second quarter of this year.