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RATCH reports 13.4 jump in profit, investment in three new power projects

Aug 14. 2019
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By The Nation

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RATCH Group Plc (RATCH) saw continued growth in business expansion and operating results in the first half of 2019, the company announced to the SET today (August 14).

 

The company gained Bt3.69 billion in profits, a 13.4 per cent rise over the first half of 2018, and realised income sharing from two commercially operating power plants with total equity capacity of 77.23 MW. 

In addition, RATCH successfully invested in three new power projects enhancing its generating equity capacity to 1,776.74 MW in total. 

Kijja Sripatthangkura, the RATCH Group CEO, said its operating performance reflects both business growth and financial stability, demonstrated by the new investment in three power projects of 1,776.74 MW in total, two of which are large-scale wind farms located in Australia, namely the Collector and Yandin projects. 

The success in the joint-venture Yandin project is considered a critical step for RATCH to build a business platform in Western Australia, a major state of Australia. Also, RATCH is confident of its ability to pursue high-potential investment opportunities under the national Power Development Plan 2018 and through public-private partnership projects both in Thailand and Asean. They are also pursuing the energy service management business for industrial factories, which is now in the research and development stage. 

“For this year, our investment strategy focuses more on joint ventures or partnership schemes in the form of acquisition of existing operations, brownfield and greenfield projects, in order to maximise the effectiveness of investment capital and return,” said Kijja. “In the first half of this year, RATCH invested in two wind farm projects in Australia – the wholly-own 226.8-MW Collector project and the 214.2-MW Yandin project – [in which we] jointly hold a 70 per cent stake, and the 1,400-MW gas-fired Hin Kong power plant in Thailand.”  

RATCH has participated in the bidding for railway, motorway and telecommunication projects with the aim to enhance its infrastructure business under a key goal. It has closely monitored the progress of the under-construction Pink-Line and Yellow-Line monorail projects to ensure they begin commercial operation on schedule by 2021, he said.

In the first six months of this year, RATCH saw additional revenues from two projects that recently commenced operations. The wholly-owned Collinsville Solar Farm in Australia with 42.5 MW began operations in March. Berkprai Cogeneration power plant with 34.73 MW under a 35 per cent equity proportion commenced operations in June. RATCH now has recorded total commercial generating capacity of 6,937.58 MW according to the equity proportion. 

For the operating performance in the first half of 2019, the company reported Bt23.51 billion in total revenues, mainly derived from the Bt19.28 billion electricity sales of Ratchaburi Power Plant, Tri Energy Power Plant and RATCH-Australia Corporation Pty Ltd, accounting for 82 per cent of the total revenues, as well as the Bt2.36 billion profit-sharing in joint venture companies, accounting for 10 per cent of the total revenues. The company recorded Bt3.69 billion in net profit, a 13 per cent rise over the same period of 2018. The earning per share is Bt2.55. 

Its financial position as of June 30, 2018, is total recorded assets of Bt99.15 billion, liabilities of Bt39.55 billion and shareholders’ equity of Bt59.60 billion.

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