Ratch looks to further expand in Asean
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Cambodia, Myanmar, RP targeted in continuous drive for higher returns
Ratchaburi Electricity Generating Holding is now looking seriously at other Asean countries such as Cambodia, Myanmar and the Philippines after gearing up for expansion in both domestic and international markets including Laos and Australia.
Chief executive officer Noppol Milinthanggoon said yesterday that the company spent the last quarter making its best efforts to optimise its power-plant portfolio to generate maximum returns.
Ratch’s first-quarter net profit sparked 37 per cent to Bt2.15 billion from the same quarter last year.
The company has set itself a target of 7.8 gigawatts in capacity by 2018.
In Australia, it is developing two wind farms with a combined 430-megawatt capacity. The first 180MW wind farm is expected to start construction this quarter and the 250MW wind farm next year.
It is also studying the acquisition of two large power plants with about 4GW of capacity together with strategic partners. A decision is expected to be reached by end of this year. If the mission is accomplished, the company would benefit from immediate income and become a leading power producer in Australia.
“The steady growth to Bt13.39 billion in revenue stemmed from the electricity sales of existing power plants, profit-sharing from joint ventures including those in Laos and Australia, and dividends from EDL-Gen,” Noppol said, referring to the power-generation arm of Electricite du Laos.
“For capacity expansion, the company has set a Bt10-billion budget for accommodating the development of committed and new projects.
Not only greenfield and brownfield projects, the company’s investment strategy is also overweighted in mergers and acquisitions and many aspects of securities holding to strengthen its cash flow and liquidity,” he said.
Ratch will recognise 6.30GW from 26 operating projects and seven projects under development. The Hongsa Power Plant project has made significant progress in construction and mining work. Commissioning is scheduled for next year.
For the Xe-Pien Xe-Namnoy Hydropower Plant project, financing is being arranged and a deal is expected to be sealed this quarter.
