By Somluck Srimalee
CK Power, the power development arm of Ch Karnchang, plans to invest more than Bt10 billion to increase its power generation from 874.5 megawatts now to 4,380MW in the next 10 years.
CK Power invests in power plants in Thailand and overseas.
Currently, the company holds a major stake in five power firms. They include the hydropower plant Southeast Asia Energy Co (SEAN) in Laos, three solar power plants in Thailand – Bangkhenchai Co, Nakorn Ratchasima Solar Co, and Chiangrai Solar Co – and the latest one is a cogeneration power plant, Bangpa-in Cogeneration Co.
The company’s managing director, Supamas Trivisvavet, a second-generation member of the Trivisvavet family, said that the company plans to acquire a 30-per-cent stake in Xayaburi Power in Laos from Ch Karnchang when the project is completed in 2019, with an estimated budget of more than Bt6 billion. Xayaburi hydropower plant has a total capacity of 1,285MW.
The company also is studying development of eight small power plant (SPP) projects in Thailand at a budget of Bt4 billion to Bt5 billion per plant. The company will hold a stake of at least 30 per cent of total project value. This will itself need an average investment budget of Bt1.2 billion to Bt1.5 billion per project. They will have an average capacity of 100MW to 200MW per plant. This will increase its production capacity to about 1,000MW.
Meanwhile, SEAN, in which CK Power holds a 53-per-cent stake, also is developing a hydropower plant – Nam-Bak – in Laos, with a production capacity of 160MW. It is expected to be completed in the next 8-10 years from now.
The company’s subsidiary, Bangpa-in Cogeneration Co, in which CK Power has a 65-per-cent stake, has developed a cogeneration power plant project 1, with production capacity of 117.5MW. Project 2 is in the pre-construction phase and will start construction in 2014 with total capacity of 120MW. The second phase is targeted to begin operations in 2017 (30 months after construction begins in 2014).
“Combined, we will increase our electricity generation capacity from hydropower, co-generation and solar plants to 4,380MW in 2023,” she said.
Following the business expansion, the company has applied to be listed on the Stock Exchange of Thailand to raise capital from the market for paying back loans and working capital by issuing 220 million shares – 180 million new shares for the public and 40 million for its existing shareholders, including Ch Karnchang, Thai Tap Water Supply, Bangkok Expressway, and Bangpa-In Land Development Co.The company aims to raise capital at the end of June or early July this year.
Currently, the company’s total debt totals Bt2.2 billion, with a debt-to-equity ratio of 0.98:1. The company showed a net loss of Bt206.25 million for 2012, according to its report to the Securities Exchange Commission of Thailand. But the company’s consolidated financial results recorded total revenue of Bt2.5 billion and net profit of Bt112.06 million at the end of 2012 and total revenue of Bt1.2 billion and net profit Bt251.69 million in the first quarter of this year.
“We are a holding company that has to consolidate our accounting from our investment in our subsidiary firm,” she said.
Meanwhile, the company’s future investment budget will come from both its cash flow and borrowings from the bank and the public. The debt-to-equity ratio will not exceed 2.5: 1.
She added that the company’s investment plan will support the country’s increasing demand for electricity, rising from 26,455MW in 2012 to 54,256MW in 2030. The company’s investment to develop power plants in both the domestic and overseas markets is aimed at supporting the country’s demand.
“We have interest in developing power plants – alternative and traditional energy. That will depend on the business opportunity,” she said.
Overseas, the company is focused on Laos. It is also studying business opportunity in Myanmar.