Hydrotek eyes 10 projects worth Bt1.5 bn
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Hydrotek is preparing to submit bids for at least 10 projects worth a total of Bt1.5 billion to cash in on state expenditures over the new fiscal year and continuing investment by the private sector.
The company expects at least 20-per-cent revenue growth in 2014, including recognition of Bt50 million in revenue from build, own and operate (BOO) and build, operate and transfer (BOT) projects. This should reinforce the company’s stability and reduce income risk in the long run, it says.
Hydrotek chairman and chief executive officer Salib Soongswang says the company’s engagement in construction and environmental-engineering business in the final two months of this year should be hectic given the expenditures by state agencies for fiscal 2014 since early October, as evidenced by more bidding for state projects.
Hydrotek’s engineering, procurement and construction (EPC) business activities continue to be busy as investments in the private sector continue. Hydrotek provides construction design and equipment installation according to clients’ specifications.
In addition, Hydrotek provides operation and maintenance service to its EPC clients, as well as BOO and BOT projects related to water production, water treatment, and water recycling for the public and private sectors. Hydrotek assumes responsibility for expenses incurred from investments and management for the duration of the project’s contract period.
Currently, Hydrotek has two projects (BOO and BOT) for Thai Plastics and Chemicals: a water-recycling project with a 10-year contract period and a tap-water production project for sale to six Chiang Mai municipalities for a period of 30 years.
Hydrotek expects to recognise about Bt50 million in revenue from those projects, which will serve as steady income for the company and reduce reliance on construction contracts, which currently account for 90 per cent of the company’s revenue.
Meanwhile, the net profit margin from the BOO and BOT projects tends to be higher. Hydrotek hopes revenue from investments in projects will account for 50 per cent of the company’s total revenue by 2017.
The company recorded revenue of Bt349.07 million and a net loss of Bt1.99 million in the first half of this year.
