CH. Karnchang signs Bt 3,500-million water treatment plant expansion projects Partnering with TTW to expand to Myanmar, confident on strong fundamentals with backlog of over Bt 100,000 million despite economic slowdown
Mr. Plew Trivisvavet, Chief Executive Officer, CH. Karnchang Public Company Limited (CK) revealed that the company signed a construction contract on 23 December 2014 with Thai Tap Water Supply Public Company Limited (TTW) for Water Treatment Plant Capacity Expansion project worth Bt 3,498 for service area Samut Sakhon-Nakorn Pathom and Pathumthani-Rangsit worth Bt 3,106 million and Bt 392 million respectively, to be completed in 2-year duration. The company also partners with TTW to conduct feasibility study on developing water treatment plant in Myanmar starting at Molamyai with clear direction to be confirmed in early 2015.
Plew added that the company had strong operating performance for 2014 with earnings of over Bt 33,000 million for the entire year, better than previously anticipated earnings of Bt 30,000 million, with a gross profit of 8 – 10%. CK also recorded special profit of over Bt 1,000 million from the selling of Bangkok Metro Company Limited (BMCL)’s shares, and over Bt 227 million from the selling of CK Power’s shares in the fourth quarter, as well as Bt 600 million from dividend from the investment in other companies. The company is confident that total annual revenue will exceed Bt 34,000 million. New backlog of over Bt 10,000 million for 2014 comprises Bangpa-in Cogeneration Power Plant Project 2 (BIC 2) worth Bt 4,611 million, the additional works of the MRT Blue Line and Green Line worth over Bt 2,000 million and water treatment plant capacity expansion project worth over Bt 3,498 million, and to-be-signed MEA underground cable installation project worth over Bt 1,100 million. These achievements reflect the company’s strength, operating efficiency and well-planned investment strategy.
“Despite the domestic political and economic challenges, global economic slowdown which cause impact and delay to the government’s infrastructure projects in 2014, CH. Karnchang has not seen a major impact. Our current backlog of over Bt 100,000 million is sufficient to sustain our construction business for the next four years. Our revenue from dividend is stable and we continue to acquire new large-scale projects. The current construction projects are progressing as planned. The construction of the MRT Blue Line Extension from Sanam Chai to Tha Phra Stations is now 60% complete, with construction of the first underground tunnel crossing Chao Phraya River now finished and the second tunnel excavation started and scheduled to be completed in 2016. As for the procurement of rolling stock for the MRT Purple Line (Bang Yai -Bang Sue Section), the train production in Japan has started by J-TREC (Japan Transport Engineering Company), the leading manufacturer of high-speed bullet train, and the first train will be delivered to Thailand in the end of 2015 for installation and test run. It was anticipated that BMCL will open the Bang Yai -Bang Sue Section for trial service in the middle of 2016 and start commercial operation in August 2016. Xayaburi Hydroelectric Power Project in Lao PDR is now 45% complete and the MRT Green Line - Bearing – Samutprakarn Section now 50% complete,” said Plew.
“Operating strategy is the key strength of CK in moving forward in the construction and infrastructure development businesses with stable and effective manners as a leading, contractor and infrastructure developer with extensive experience and international standard. Looking ahead in 2015, the company will gear full steam ahead in bidding for new infrastructure projects including the MRT Orange Line and Pink Line, dual-track railways and motorways, with confidence to acquire 20 – 25% share of these projects. CK is also ready to invest in the infrastructure project as Public-Private Partnership (PPP) through its subsidiaries including BECL, BMCL, TTW and CKP in expressway, mass transit line, power plant and water treatment plant projects. In the beginning of 2015, the concession of operation of the MRT Blue Line Extension will be finalized and CK along with BMCL will employ their best efforts to expedite its operation,” added Plew.
Currently CK has received continued interest from many major investment groups and institutional investors, both local and international. The recent road shows in Singapore, Hong Kong and Malaysia were highly successful. CK is also listed in the SET50 Index, making its shares gaining momentum among individual and institutional investors.