EGCO Group posts over 3,200 million baht operating profit in Q2/2022
Electricity Generating Public Company Limited or EGCO Group announced continuous growth in the second quarter of 2022 with 3,219 million baht operating profit.
Recently, the company has successfully completed the constructions of the “Nam Theun 1” hydropower project and the Extension of Petroleum Pipeline System in Northeastern project “TPN” which will shortly start commercial operations and recognize income.
Thepparat Theppitak, EGCO Group’s President, said, “Our operations in Q2/2022 have progressed well as planned. Despite continuous fuel price increases due to the Russia-Ukraine war, EGCO Group has continuously managed the fuel cost to achieve the highest possible efficiency level in our electricity generation activity".
Other significant milestones in the second quarter to date are the financial agreement signing to secure financial support for the “EGCO Cogeneration SPP Replacement" project with a 74 MW net capacity in Rayong province, and the complete construction of two projects – “Nam Theun 1” hydropower project with an installed capacity of 650 MW in Lao PDR and the Extension of Petroleum Pipeline System in Northeastern project “TPN” in Saraburi-Khon Kaen province. The two latter projects are ready to start commercial operations and immediately recognize income.
The company also announced strong operating performance for Q2/2022.
The total revenue in this quarter was 15,217 million baht, an increase of 48% compared to the same period last year. The operating profit was 3,219 million baht, an increase of 17% year on year.
Key factors contributing to the robust performance are the stronger performance of the “BLCP” power plant and “Nam Theun 2” hydropower plant as well as income recognition from investment in “APEX Clean Energy Holdings” in the US. When considering operating performance in the first six months, the company reported 7,391 million baht operating profit, 53% higher than the same period last year.
As for the first half of 2022, the company booked a net profit of 3,339 million baht, an increase of 59% compared to the same period last year. However, the financial performance for Q2/2022 was affected by the conversion of foreign currency liabilities into Thai baht due to the weaker baht and the impact of the change in the fair value of financial instruments. However, both items have no impact on cash flow and business operations.
For the investment direction in the second half of this year, Thepparat stated, “EGCO Group continues to seek new investment opportunities. Based on our “Cleaner, Smarter and Stronger to Drive Sustainable Growth” concept, EGCO Group will focus on the expansion of the electricity generating business, which is a mid-stream business, in the areas where we already have a business presence, especially in the US. We will also focus on growing our fuel and infrastructure business through the “TPN” project operations.
In terms of electricity innovation and the new S-Curve business, we have invested in “Innopower”, which will strengthen our competitive advantages, and drive EGCO Group to become a low carbon company and create sustainable growth in the future.