Bangkok--1 Nov--Ratchaburi Electricity Generating Holding
Ratchaburi Holding Announces 4,235 MB Net Profit for the First Nine Months of 2010with expedited development of 4 projects and further investment of 2 new projects in Lao PDR
Ratchaburi Electricity Generating Holding PCL (Ratchaburi Holding) announced the Company and its subsidiaries’ unaudited performance for the first nine months of 2010 (January — September). The Company reported a net profit of 4,235 million baht or 2.92 baht per share, a decrease of 23.79% in comparison to the same period last year. The decline stemmed from the decreased gains from its availability payment that reflected the lower base availability credit specified in the Power Purchase Agreement, compared to 2009.
According to Mr. Noppol Milinthanggoon, President of Ratchaburi Electricity Generating Holding PCL., “The Company’s performance continued to be satisfactory and profitable. The Company is committed to the accelerated development of invested projects to ensure they are on schedule for completion. In late — 2010, the 615 MW Num Ngum2 Hydroelectric Power Plant in Lao PDR will commence initial power operation while the coal-fired Hong Sa Power Plant successfully drew out the first tranche of loan on 29 October, Num Ngum3 Power Plant and Xe Pien Xe Nam Noy Power Plant are progressing as scheduled. Altogether, the combined capacity of the four projects is 3,323 megawatts. The total value of the four projects is 215,670 million baht with the investment of 73,000 million baht made by Ratchaburi Holding.”
In terms of progress on the Num Ngum2 Power Plant, the wet testing of electricity generators unit1 and unit2 has been completed while the testing of unit3 is underway and is expected to be completed in December 2010. After completion of financing 95,000 million baht debt, the Hongsa project has signed the Owner’s Engineer and Construction Service Management Agreement with Electricity Generating Authority of Thailand (EGAT). Construction of the Hongsa project will begin in 2011. Negotiations are underway with EGAT about the power purchase agreements and with the government of Lao PDR about the concession agreement for the Num Ngum3 and Xe Pien Xe Nam Noy projects.
In the first nine months of 2010, the Company’s total revenue was 34,122 million baht, up 19.94% from the same period of last year. This was mainly attributable to 7,369 million baht increase of energy payment revenues to 24,172 million baht and the 20.36% increase in profit sharing from joint ventures (worth 1,345 million baht) from previous year. The gains from availability payment (8,191 million baht), which was the Company’s core revenue, dropped 18.49%, compared to the same period in 2009 as the base availability credit as defined in the Power Purchase Agreement was lower than in 2009.
In the same period, The Company’s total cost (exclude fuel cost) and expenses declined by 5% to 5,837 million baht because its interest expenses decreased by 25.59 to 507 million baht due to the loan repayment and lower average interest during the period. This resulted from the company’s effort in debt refinancing last year. The selling cost was 4,402 million baht, 4.42% down from the same period of last year. The income tax in the period increased 7.51% to 929 million Baht because tax privilege of Ratchaburi combined cycled power plants given by Board of Investment has been expired.
The Company also reported its unaudited Q3/2010 operating results with a net profit of 1,252.71 million baht, 24.39% decline from the same period of last year. The Company’s total revenue was 11,242 million baht and its selling cost and services and administration expenses were 9,517 million baht.
In addition to its mentioned four projects that are in the process of development, the Company plans to make additional investments in many other projects in Lao PDR. With the capacity of 7,000 MW, Lao PDR currently has the contracted capacity of 5,561 MW. The Company is negotiating to co-invest in two projects in Lao PDR with the capacity of 1,500 MW and plans for further investments in the Philippines, Vietnam, Indonesia and Australia. Its future investments will go to large power plants that are operational as well as coal mines. The negotiations about the new oversea deals outside Lao PDR are expected to be finalized by 2011.
“Given its robust financial status, the Company is financially prepared for many large investment projects, with cash in hand of more than 10,000 million baht and accumulated profit of 30,000 million baht. Ratchaburi Holding is capable to mobilize new funds by launching debentures valued at 7,500 million baht, which was approved by shareholders. We are able to get new loans from leading financial institutes as our debt per earnings ratio remains low (0.58 times). The TRIS rating for the Company is A- and this reflects the solid financial status of Ratchaburi Holding,” concluded Mr Noppol.
For more information, please contact:
Public Relations Department
Ratchaburi Electricity Generating Holding PCL.
Telephone: 0 2794 9940-4
Email:
[email protected],
[email protected]