Costs cut into Ratch earnings for 2017
HIGHER operating costs have been blamed for a 1 per cent drop in 2017 profit from the year before to Bt6.1 billion at Ratchaburi Electricity Generating Holding Public Co Ltd (Ratch).
However, earnings from profit sharing at the power company’s joint ventures grew 23 per cent to Bt3.57 billion from 2016, as a result of the Hongsa thermal power plant’s improved efficiency of equivalent availability factor (EAF). The plant generated revenue of Bt2.01 billion, Ratch said.
Regarding its business goals and direction for 2018, the company plans to expand its generation capacity of 8,250 megawatts equivalent by 870 megawatts equivalent, or 12 per cent from the current installed generation capacity, with a Bt25 billion investment budget provisioning for projects under construction and development as well as new investment this year.
Kijja Sripatthangkura, chief executive of Ratch, said the company continued to show a robust performance in 2017 as seen from the profit sharing of joint ventures and the availability payment of the key power plants that rose 23 per cent and 11 per cent, respectively, despite a slight decline in profit.
The company expected shareholders to gain a 2017 dividend of Bt3.48 billion (Bt2.40 per share), accounting for 57 per cent of the annual profit.
In September 2017, a Bt1.67 billion interim dividend (Bt1.15 per share) was paid, while the remainder of the payment will be proposed to the shareholders’ meeting for consideration and approval on April 5.
“To achieve the 8,250-MW goal, the company will focus on three businesses, namely electricity generation, infrastructure and fuel at home and internationally where six projects in the pipeline show investment possibility,” Kijja said.
“This year, acquisition of operating projects is more focused with a target of 370 megawatts to ensure steady and stable revenues and cash flow of the company.
“At the same time, greenfield and brownfield investment will look further for 500 megawatts. It projects investment spending of around Bt25 billion in this year, which will derive from the company’s outstanding cash and fund-raising in financial market: Bt15 billion used for existing projects and Bt10 billion for new investments.”
This year, two projects in Australia are scheduled to operate commercially: the 34-MW Collinsville solar power project to be generated in July and 144.36-MW Mount Emerald wind farm to be operated in September which will increase the company’s commercial capacity to 6,674 megawatts.
For the overall 2017 performance, Ratch realised Bt8.35 billion in earnings before interest expenses and tax, Bt46.43 billion revenue, and Bt15.09 billion in revenue excluding the energy payment. The availability payment income from the Ratchaburi and Tri Energy power plants as well as the profit sharing from Hongsa power plant rose significantly. Considering the revenue structure in 2017, there are three main sources, including revenues from sale and service as well as a financial lease of 70.6 per cent of total revenues, profit sharing from joint ventures of 24.9 per cent and interest income and others of 4.5 per cent.
For the financial position on December 31, the company reported total assets of Bt94.22 billion, with liabilities of Bt30.94 billion and shareholders’ equity of Bt63.28 billion, along with cash and investment of Bt10.01 billion and retained earnings of Bt51.45 billion.
