Profit sharing from JVs boosts Ratch’s profit gain by 37%
RATCHABURI Electricity Generating Holding has reported net profit of Bt3.2 billion for the first nine months of the year, up 37 per cent over the same period last year. Profit before foreign-exchange losses was Bt4.4 billion, a 4-per-cent increase year on year.
Rum Herabat, Ratch chief executive officer, said profit sharing and dividends from joint ventures drove the company’s performance substantially during the nine month period. This income accounted for 5 per cent of total revenues, at Bt1.9 billion, generated by Hongsa power plant, NNEG co-generation power plant, and Songkhla biomass power plant. The company also enjoyed higher dividend income from investments in common stocks of EDL-Generation in Laos.
Meanwhile, Ratch continues to seek out new project investments to secure a steady income flow. This is seen in the construction of the 180-megawatt Mount Emerald wind farm in Australia that started this month, scheduled for commercial operation in September 2018. Also, construction of the 410MW Xe-Pian Xe-Namnoy hydropower project in Laos has progressed as planned, and its output will be commercially dispatched to the Electricity Generating Authority of Thailand in 2018.
“To accelerate growth, the strategic business plan defined the company’s broadened investment boundaries, enabling expansion into new businesses besides electricity, which is still our core business,” Rum said.
“Ratch has continued to study other potential business opportunities in Thailand and overseas. The company has begun a new chapter in the transport industry by participating in the bidding for Thailand’s Pink and Yellow urban-rail lines on behalf of BSR Joint Venture. Ratch can capitalise on its expertise in power and electrical-system management to implement the project successfully.
“In addition, the company is studying various infrastructure projects in neighbouring countries.
“For new investment in power business, Ratch is conducting feasibility studies for many fossil-based greenfield and brownfield projects in neighbouring and Asean countries where power demand is continuously increasing. It will take time for a thorough assessment of the risks and returns of those projects before making a conclusion.
“The 42MW Collinsville solar power station in Australia, which recently received funding of 9.5 million Australian dollars [Bt255 million] from the Australian Renewable Energy Agency, or ARENA, is under negotiation with potential off-takers and sourcing for project financing that will be finished in early 2017.”
For the first nine months of 2016, the company recorded Bt39.2 billion in revenues, which included Bt31.4 billion from electricity sales from the Ratchaburi and Tri Energy power plants. Profit sharing from joint ventures amounted to Bt1.7 billion, rising 154 per cent. Expenses totalled Bt33.3 billion, decreasing by 16 per cent from the same period last year.
As of September 30, the company booked Bt91.9 billion in total assets, Bt31.8 billion in liabilities, Bt60.0-billion shareholders’ equity, Bt7.2 billion in cash and investment capital, and Bt45.8 billion in retained earnings.
