Pact to expand water treatment facilities
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Ch Karnchang (CK) has signed a Bt3.49-billion contract with TTW on a water-treatment project, confident of strong fundamentals with a backlog worth more than Bt100 billion despite the economic slowdown.
CK chief executive officer Plew Trivisvavet said the company signed a construction contract yesterday with TTW to expand water-treatment capacity in two service areas, Samut Sakhon-Nakhon Pathom for Bt3.1 billion and Pathum Thani-Rangsit for Bt392 million, to be completed in two years.
The company is also partnering with TTW to conduct a feasibility study on developing water-treatment plants in Myanmar, beginning with Molamyai, a decision to be finalised in early 2015.
Plew said CK had strong operating performance this year, with earnings of more than Bt33 billion, better than the previously anticipated Bt30 billion, with a gross profit of 8-10 per cent.
CK also recorded special profit of more than Bt1 billion from the sale of shares in Bangkok Metro Co, and more than Bt227 million from the sale of CK Power shares in the final quarter of 2014, as well as Bt600 million from dividends from its investment in other companies. It is confident that this year’s revenue will exceed Bt34 billion.
This year’s additional backlog of more than Bt10 billion comprises Bang Pa-in Cogeneration Power Plant Project 2 (BIC 2) worth Bt4.6 billion, additional work on the MRT Blue Line and Green Line worth more than Bt2 billion, the water-treatment project worth more than Bt3.49 billion, and a yet-to-be-signed contract with the Metropolitan Electricity Authority to install underground cable, worth more than Bt1.1 billion.
Despite the domestic political and economic challenges that delayed the government’s infrastructure projects this year, coinciding with a global economic slowdown, Ch Karnchang has not suffered major impacts. Its current backlog of more than Bt100 billion is sufficient to sustain its construction business for the next four years. Revenue from dividends is stable and CK continues to acquire new large-scale projects. The current construction projects are progressing as planned.
CK says it has received expressions of interest from many major investment groups and institutional investors, both local and international. It says its recent roadshows in Singapore, Hong Kong and Malaysia were highly successful. CK is also listed in the SET50 Index, with its shares gaining momentum among individual and institutional investors.
