แท็ก
TRIS rating
TRIS Rating Co., Ltd. has affirmed the company rating of Glow Energy PLC (GLOW) and the ratings of its outstanding debentures at “A”. TRIS Rating has also assigned a “A” rating for GLOW’s proposed up to Bt2,000 million guaranteed debentures. The outlook has been remained “stable”. The ratings reflect GLOW’s stable cash flow from long-term Power Purchase Agreements (PPAs) with the Electricity Generating Authority of Thailand (EGAT) and long-term contracts with a diverse group of industrial customers (ICs). Moreover, GLOW has a proven record of providing reliable electricity and other utilities to customers, and receives strong support from its major shareholder, SUEZ Group. The ratings also take into consideration environmental concerns, and uncertainty about future regulation of the power industry. From a business growth perspective, GLOW faces intense competition from the PTT Group, completion risk for its CFB#3 project, and uncertainty regarding the bidding under the new Independent Power Producer (IPP) scheme.
The “stable” outlook reflects GLOW’s reliable cash flow from its long-term PPAs and contracts with EGAT and ICs. The company is expected to maintain its strong financial profile and ability to finance growth, without weakening its financial position.
TRIS Rating reported that GLOW was founded in 1993 as an energy company and its business currently consists of four Small Power Producers (SPPs) and one of the seven IPPs in Thailand. GLOW Group is considered the largest SPP Group in Thailand with installed capacity of 996 megawatts (MW) electricity and 968 tonnes per hour (tph) steam. Glow IPP Co., Ltd. (GIPP), the GLOW subsidiary responsible for its IPP business, operates a 713 MW combined cycle power plant. The GLOW Group’s total electricity generating capacity is 1,709 MW, of which 76% has been contracted to EGAT under 21-25 years PPAs. The remaining electricity, together with steam and treated water, are supplied to ICs under sales contracts that have a tenor range from 10 to 20 years. Those long-term commitments provide GLOW with stable revenue. In 2006, electricity sales accounted for 87% of GLOW’s total sales, with EGAT and ICs contributing 72% and 28% of electricity sales, respectively.
GLOW’s SPP businesses, located in Map Ta Phut Industrial Estate (MIE) and Eastern Seaboard Industrial Estate (ESIE) in Rayong province, mainly cater to petrochemical plants which require highly stable utility supplies. The SUEZ Group’s holding in GLOW is currently 69%, diluted from 99% after GLOW listed on the Stock Exchange of Thailand (SET) in April 2005. SUEZ is an international industrial and service group whose core activities are energy and environment services. SUEZ’s total power capacity is approximately 60,000 MW. In 2006, the SUEZ Group reported ?44,289 million in revenue, of which the energy business contributed 74%. GLOW is part of SUEZ Energy International (SEI) which is the SUEZ business line responsible for the company’s energy activities outside Europe. The SUEZ Group has remained as GLOW’s major shareholder since 2000 and has provided experienced management teams and technical support.
TRIS Rating said that GLOW’s operating performance in 2006 was satisfactory. The company achieved its equivalent availability factor (EAF) for SPPs at 95%, and forced outages were 1%. The EAF of GIPP was 97.5%, a significant improvement from 83.7% in 2005, when the company performed major scheduled maintenance. The average heat rate of GLOW’s SPPs and IPP in 2006 improved slightly from 2005. GLOW’s sales in 2006 increased by 14.4% year-on-year (y-o-y) due to higher sales volume. The volume of power GIPP sold to EGAT increased by 17% y-o-y, while GLOW’s SPPs business also increased electricity sales volume by 2% to EGAT and by 9% to ICs. Operating income as a percentage of sales decreased to 26.8% in 2006 from 29.0% in 2005, mainly due to rising fuel prices. GLOW’s liquidity is fairly strong as debt is being repaid as scheduled. Leverage is not expected to be much lower than the current level since GLOW plans to re-gear to finance CFB#3 project which is a 115 MW coal-fired power plant at project cost of approximately Bt7,000 million. The CFB#3 project started construction in February 2007 and has a project completion target by the end of 2009.
GLOW’s business expansion in the Map Ta Phut (MTP) area is expected to be limited by increasing competition from the PTT Group and potential government action regarding environmental concerns in the area. Though the imposition of stricter environmental standard or other governmental measures have not yet been finalized, these concerns limit the potential for business expansion in that area. As one of the largest energy groups in Thailand, GLOW may be one of the successful bidder and is expected to receive an IPP license in the coming IPP bidding. However, its synergies in the MTP area may no longer be an advantage, said TRIS Rating. -- End
Glow Energy PLC (GLOW)
Company Rating: Affirmed at A
Issue Ratings:
GLOW089A: Bt6,500 million guaranteed debentures due 2008 Affirmed at A
GLOW09OA: Bt2,310 million guaranteed debentures due 2009 Affirmed at A
GLOW10DA: Bt3,490 million guaranteed debentures due 2010 Affirmed at A
Up to Bt2,000 million guaranteed debentures due 2017 A
Rating Outlook: Stable
-------------------------------------------------------
Copyright 2007, TRIS Rating Co., Ltd. All rights reserved. Any unauthorized use, disclosure, copying, republication, further transmission, dissemination, redistribution or storing for subsequent use for any purpose, in whole or in part, in any form or manner or by any means whatsoever, by any person, of the credit rating reports or information is prohibited. The credit rating is not a statement of fact or a recommendation to buy, sell or hold any debt instruments. It is an expression of opinion regarding credit risks for that instrument or particular company. The opinion expressed in the credit rating does not represent investment or other advice and should therefore not be construed as such. Any rating and information contained in any report written or published by TRIS Rating has been prepared without taking into account any recipient’s particular financial needs, circumstances, knowledge and objectives. Therefore, a recipient should assess the appropriateness of such information before making an investment decision based on this information. Information used for the rating has been obtained by TRIS Rating from the company and other sources believed to be reliable. Therefore, TRIS Rating does not guarantee the accuracy, adequacy, or completeness of any such information and will accept no liability for any loss or damage arising from any inaccuracy, inadequacy or incompleteness. Also, TRIS Rating is not responsible for any errors or omissions, the result obtained from, or any actions taken in reliance upon such information.
The “stable” outlook reflects GLOW’s reliable cash flow from its long-term PPAs and contracts with EGAT and ICs. The company is expected to maintain its strong financial profile and ability to finance growth, without weakening its financial position.
TRIS Rating reported that GLOW was founded in 1993 as an energy company and its business currently consists of four Small Power Producers (SPPs) and one of the seven IPPs in Thailand. GLOW Group is considered the largest SPP Group in Thailand with installed capacity of 996 megawatts (MW) electricity and 968 tonnes per hour (tph) steam. Glow IPP Co., Ltd. (GIPP), the GLOW subsidiary responsible for its IPP business, operates a 713 MW combined cycle power plant. The GLOW Group’s total electricity generating capacity is 1,709 MW, of which 76% has been contracted to EGAT under 21-25 years PPAs. The remaining electricity, together with steam and treated water, are supplied to ICs under sales contracts that have a tenor range from 10 to 20 years. Those long-term commitments provide GLOW with stable revenue. In 2006, electricity sales accounted for 87% of GLOW’s total sales, with EGAT and ICs contributing 72% and 28% of electricity sales, respectively.
GLOW’s SPP businesses, located in Map Ta Phut Industrial Estate (MIE) and Eastern Seaboard Industrial Estate (ESIE) in Rayong province, mainly cater to petrochemical plants which require highly stable utility supplies. The SUEZ Group’s holding in GLOW is currently 69%, diluted from 99% after GLOW listed on the Stock Exchange of Thailand (SET) in April 2005. SUEZ is an international industrial and service group whose core activities are energy and environment services. SUEZ’s total power capacity is approximately 60,000 MW. In 2006, the SUEZ Group reported ?44,289 million in revenue, of which the energy business contributed 74%. GLOW is part of SUEZ Energy International (SEI) which is the SUEZ business line responsible for the company’s energy activities outside Europe. The SUEZ Group has remained as GLOW’s major shareholder since 2000 and has provided experienced management teams and technical support.
TRIS Rating said that GLOW’s operating performance in 2006 was satisfactory. The company achieved its equivalent availability factor (EAF) for SPPs at 95%, and forced outages were 1%. The EAF of GIPP was 97.5%, a significant improvement from 83.7% in 2005, when the company performed major scheduled maintenance. The average heat rate of GLOW’s SPPs and IPP in 2006 improved slightly from 2005. GLOW’s sales in 2006 increased by 14.4% year-on-year (y-o-y) due to higher sales volume. The volume of power GIPP sold to EGAT increased by 17% y-o-y, while GLOW’s SPPs business also increased electricity sales volume by 2% to EGAT and by 9% to ICs. Operating income as a percentage of sales decreased to 26.8% in 2006 from 29.0% in 2005, mainly due to rising fuel prices. GLOW’s liquidity is fairly strong as debt is being repaid as scheduled. Leverage is not expected to be much lower than the current level since GLOW plans to re-gear to finance CFB#3 project which is a 115 MW coal-fired power plant at project cost of approximately Bt7,000 million. The CFB#3 project started construction in February 2007 and has a project completion target by the end of 2009.
GLOW’s business expansion in the Map Ta Phut (MTP) area is expected to be limited by increasing competition from the PTT Group and potential government action regarding environmental concerns in the area. Though the imposition of stricter environmental standard or other governmental measures have not yet been finalized, these concerns limit the potential for business expansion in that area. As one of the largest energy groups in Thailand, GLOW may be one of the successful bidder and is expected to receive an IPP license in the coming IPP bidding. However, its synergies in the MTP area may no longer be an advantage, said TRIS Rating. -- End
Glow Energy PLC (GLOW)
Company Rating: Affirmed at A
Issue Ratings:
GLOW089A: Bt6,500 million guaranteed debentures due 2008 Affirmed at A
GLOW09OA: Bt2,310 million guaranteed debentures due 2009 Affirmed at A
GLOW10DA: Bt3,490 million guaranteed debentures due 2010 Affirmed at A
Up to Bt2,000 million guaranteed debentures due 2017 A
Rating Outlook: Stable
-------------------------------------------------------
Copyright 2007, TRIS Rating Co., Ltd. All rights reserved. Any unauthorized use, disclosure, copying, republication, further transmission, dissemination, redistribution or storing for subsequent use for any purpose, in whole or in part, in any form or manner or by any means whatsoever, by any person, of the credit rating reports or information is prohibited. The credit rating is not a statement of fact or a recommendation to buy, sell or hold any debt instruments. It is an expression of opinion regarding credit risks for that instrument or particular company. The opinion expressed in the credit rating does not represent investment or other advice and should therefore not be construed as such. Any rating and information contained in any report written or published by TRIS Rating has been prepared without taking into account any recipient’s particular financial needs, circumstances, knowledge and objectives. Therefore, a recipient should assess the appropriateness of such information before making an investment decision based on this information. Information used for the rating has been obtained by TRIS Rating from the company and other sources believed to be reliable. Therefore, TRIS Rating does not guarantee the accuracy, adequacy, or completeness of any such information and will accept no liability for any loss or damage arising from any inaccuracy, inadequacy or incompleteness. Also, TRIS Rating is not responsible for any errors or omissions, the result obtained from, or any actions taken in reliance upon such information.