EGCO GROUP POSTS OVER THB 7 BILLION PROFITFOR 2013 INVESTMENT CONTINUES IN THE ASIA PACIFIC
Electricity Generating Public Company Limited or EGCO Groupannounced strong 2013 performance with continuous growth which is better than expectation. The Company will keep its focus in investing in power generating business, in which it has expertise, in Thailand and the Asia Pacific region, and seeking opportunities to acquire commercially operated projects in order to immediately recognize income. Other strategies for 2014 include seeking opportunities for Greenfield investment to strengthen long-term revenue maintenance and generation with an aim to maintain return on equity at least at 10%.
Mr. SahustPratuknukul, President of EGCO Group reported “For the year 2013 ending 31 December 2013, EGCO Group continued to record better-than-expected operating results. The operating profit before the effects of Foreign Exchange (FX) gains (losses), Deferred Tax, and Amortisationof fair value uplift of Quezon was 7,605 million baht, a rise of 1,545 million baht from the previous year. EGCO Group’s total assets were 130,937 million baht, an increase of 20,548 million baht or 18.61%, compared to 2012.
In 2013, EGCO Group successfully developed several renewable power plant projects both in Thailand and overseas, especially in the Asia Pacific region with the successful investment in Australia. 9 renewable power plant projects commercially operatedand dispatched electricity into the system with a total contracted capacity of 41 MWequity. These projects included the “Bueng Sam Phan” solar power plant in Petchabunprovince, which is the fourth project operated by G-Power Source Company Limited (GPS), the “Lopburi Solar Expansion” project operated by Natural Energy Development Company Limited (NED), the “Theppana” wind power plant in Chaiyaphumprovince, six solar power plants of “Solarco” project, namely “SaiYai 1”, “SaiYai 2”, “SaiPhet 1”, “SaiPhet 2” and “SaiPhet 3” in NakhonPathom province, and “SaiKyo” in Suphanburi province.
Consideringthe Power Purchase Agreement signing events, there were 2 power plant projects includingthe new 930-MW Khanom power plant project (Unit 4) in Nakorn Si Thammarat province which has been under construction, and the 81-MW equity Chaiyaphum Wind Farm project in Chaiyaphum province which has been preparing for construction. Forthe new overseas investment, the Company invested in the 113-MW Boco Rock Wind Farm in New South Wales, Australia which has been under construction.
EGCO Group currently runs 20 operating plants which have already started commercial operations in Thailand and overseas with a total contracted capacity of 4,518 MW equity, and 8 projects under construction and development with a total contracted capacity of 1,613 MW equity.
2014: Investment in Projects with Immediate Income Recognition and Greenfield Investment
Mr. Sahust said, “In 2014, EGCO Group will continue to focus our efforts in maintaining income level by keeping return on investment (ROE) at 10% minimum. We will focus our investment in power generating business in Thailand and the Asia Pacific region, which is the area we have expertise and experience for years.”
Considering its business strategies in 2014, the Company will seek new opportunities in investment in commercially operating projects for its short-term business plan. This will enable the Company to benefit from immediate earning recognition. For long-term investment plan, the Company will seek opportunities in Greenfield investment projects for long-term income generation. For overseas investment, the Company will leverage on its existing projects for further investment opportunities.
The Company also focuses on asset management, especially commercially operating assets in the portfolio, by ensuring power plant operations efficiency. Close monitoring of jointly invested projects has been introduced to ensure that return on investment from those projects meets with the projection.
“In addition to driving business growth, EGCO Group values sustainable business development. This can be achieved by maintaining power plant efficiency for the minimum fuel usage in generating electricity, investment in renewable energy to support the government’s policy in reducing dependence on electricity generation from fossil fuel, doing business with good corporate governance, and responsibility towards communities, society and the environment. In 2013, the Company announced a new vision of being a major sustainable Thai power company doing business in Thailand and the Asia Pacific region, with full commitment to environment protection and social development support,” said Mr. Sahust.