Bangkok--9 Nov--RATCH
Ratchaburi Electricity Generating Holding PCL. [SET symbol: RATCH
] reports the net profit of the Q3/2006 reviewed operating performance, increasing by 21% , ensuring to enter the new IPP bidding next year and aiming to become a leading investment company in power generation business in this region.
RATCH’s third quarter of 2006 operating performance
Mr.Narong Sitasuwan, Managing Director of Ratchaburi Electricity Generating Holding PCL. said that today we announces the reviewed operating performance of the Company and subsidiaries for the third quarter of 2006 with net profit of 1,795 million baht or earning per share at 1.24 baht, increasing by 21% of the net profit of 1,481 million baht from the same period in 2005.
There were two major factors that affect the net income of this quarter. Firstly, the administration expenses decreased by 78% from 581 million baht in the last year to 125 million baht in this year because in the last year the Company recorded the refinancing expense of the principle outstanding loan of the major company’s subsidiary, Ratchaburi Electricity Generating Company Limited, while there was no record of such expense in this year.
Secondly, the interest rate during the year 2006 has increased, which influenced on the Company’s interest’s income of this quarter, increasing by 1 times from 67 million baht of the third quarter of 2005 to 148 million baht in this year.
RATCH’s 9-month period of 2006 operating performance
For the 9-month period of 2006 operating performance, the Company recorded net profit of 5,188 million baht or earning per share at 3.58 baht, which slightly decreased from 5,486 million baht in the same period of the previous year.
The Company’s consolidated total revenue was 39,181 million baht, increasing by 13% from 34,785 million baht in the same period of last year, consisted of electricity sales of 38,070 million
baht, interest income of 390 million baht, sharing profit of an associated and joint-venture companies amounted to 561 million baht, and other income of 160 million baht.
The Company’s total costs and expenses were 32,876 million baht, increasing by 16% from 28,328 million baht in the last year, consisted of cost of sales of 32,473 million baht, and selling and administrative and other expenses of 403 million baht.
Mr. Narong added that the net profit of the 9-month period of 2006 operating performance slightly decreased because the selling income received from Availability Payment (AP) decreased from last year that it affected by a low Available Payment rate specified in the Power Purchase Agreement (PPA) this year.
Moreover, in the 9-month period of 2006, the Company’s cost of sales increased by 18% from the same period of last year because in this year the unit 1 combined-cycle power plant was shutdown for major overhaul and the Company recorded the maintenance expenses of Ratchaburi combined-cycle power plant from General Electric International Operations Co., Inc. and GE Energy Parts, Inc., contracting parties to Contractual Service Agreement (CSA) of Ratchaburi Electricity Generating Company Limited for 22 years. However, the CSA can enhance the power plants’ efficiency maintenance and cost management to strengthen generation availability of the combined cycle power plants and stabilize maintenance expense by paying service charge in quarterly basis.
RATCH’s future growth
Mr. Narong said that we are preparing for the upcoming Independent Power-Producer (IPP) bidding in next year and aiming to win the bidding because of the readiness on the source of funds for future investment derived from the Company’s working capital amounts to 9,491 million baht and its retained earning from business operation accrues to 17,746 million baht and the strategic site location of the existing site of Ratchaburi’s power plant can share the common facilities with another new 1,400 MW. power plants with less investment cost .
Besides, the government gives an opportunity to the Company and all private power producers in Thailand to enter the new IPP bidding in order to enhance the fair competition, which can build the great benefits to people in the Kingdom. Moreover, the Company also maintains the leading local power-producer status by retaining the level of growth rate and percentage in the market share of the power production capacity.
RATCH’s investment direction from 2007 onwards
Mr. Narong added that from the year of 2007 onwards, we revised the Company’s strategic plan to be more effective with the new vision of aiming to be the leading investment company in power generation business in this region with public trustfulness and the new mission of investing, developing, and operating in the power generation business and the related businesses.
For the Company’s policy, we have three-investment schemes to be followed in respectively: to be a major power-producer in Thailand, to produce power abroad and sell it to Thailand, and ultimately to produce and sell power overseas. Finally, we also follow the management principle of focusing on the great benefit of society, environment, and the community and the corporate governance.
The Company’s information
Ratchaburi Electricity Generating Holding Public Company Limited is a leading investment company in power generation business with a total capacity of 3,995 MW, deriving from its investment in many power plant projects. The Company has a capacity portion by equity own in each projects as follows: The current commercial operating plants are the 3,645-MW Ratchaburi’s power plants and the 350-MW Tri Energy’s power plants in Ratchaburi province. The ongoing projects are the 350-MW Ratchaburi Power’s power plants in Ratchaburi province, the 1.75-MW power generation from flared gas project in Sukhothai province, and the 153.75-MW Nam Ngum 2’s Hydro power plant in Lao PDR. Including the current capacity and the ongoing project, the company will have a total production capacity of 4,500.50 MW.
Learn more about Ratchaburi Holding, visit our web site at www.ratch.co.th
Information for media contact:
Mookpim Chulpongstorn / Saowanee Rattanakit
Tel: 02-978-5223-4 Fax: 02-937-9541