Ratch expanding in time for AEC opportunities
Ratchaburi Electricity Generating Holding (Ratch) is planning to expand in the region so it can take advantage of opportunities once the Asean Economic Community kicks off in 2015.
CEO Peerawat Phumthong said that with the exception of Laos, Cambodia and Myanmar, where the firm is already planning to invest, feasibility studies are being conducted in other Asean nations, such as the Philippines, Vietnam and Indonesia. The new cooperation under AEC will enable an unrestricted transfer of labour and funds in the region, while bureaucratic regulations will be significantly reduced.
In Laos, he said, the company will be entering power production and distribution business through Ratch-Lao Co Ltd. It is also conducting feasibility studies in other projects, including the Nam Bak and Nam Ngem 3 power-generation plants. Meanwhile, its Hongsa Power Plant is at a stage where agreements to purchase mining equipment are being signed, and the Xepian-Xe Namnoy Hydroelectric Power Project is ready to sign a purchasing contract with Egat in the second quarter. The company is also negotiating concession and purchasing agreements with Laos.
In Myanmar, the authorities are working out how much power produced by the first-phase of a coal-fired 400-megawatt power plant will be consumed at the Dawei Industrial Park before the government agrees to sell the surplus energy to Thailand.
In Cambodia, the 50/50 joint venture KK Power Co Ltd has been granted a monopoly status for its proposed power plants, which should have a combined power-production capacity of 2,000 megawatts. The 1,800-megawatt coal-fired power plant being constructed at Kong Island, will also sell power to Thailand.
Ratch plans to spend Bt16 billion over the next six years and aims to spend at least Bt7 billion on projects this year. The total investment might be increased if the company finds suitable new projects. The company is preparing to sell US-dollar denominated debentures worth up to $500 million (Bt15.67 billion) as well as baht-denominated debentures worth up to Bt7.5 billion.
According to Peerawat, Ratch is delighted that its investment last year in Ratch-Australia Corporation (RAC) earned it Bt1.06 billion in the first quarter. The company plans to increase its stake in RAC from 11.92 per cent to 80 per cent by July. In addition, RAC will be looking to invest in a 200-megawatt wind-energy project as well as a coal mine in Australia.
Ratch also earned Bt98 million in dividends last April from its investment in an infrastructure fund in Australia and from EDL-Gen Plc in Laos. The company plans to buy more shares in both these ventures later this year.
Ratch reported its first-quarter revenue at Bt12.12 billion, showing a 43-per-cent increase from the same period last year, while its profit before investment and tax deductions stood at Bt2.42 billion, up 21 per cent over the previous period. By the end of this year, the company will have a 5,489-megawatt production capacity, up from its current capacity of 5,311 megawatt.
