However, the company expects that this year's revenues will shrink by 10 per cent from Bt51.85 billion last year. This is expected to result in a slight decline in net profit.

With a net profit of Bt6.12 billion last year, a 1-per-cent increase from 2005, its board of directors agreed on Monday to pay an additional Bt1.10 dividend per share on May 16. It has already paid Bt1 each last September.

Managing director Narong Sitasuwan said the investment plan of Bt25 billion was aimed at expanding capacity for electricity production at the Nam Nguem 2 and Nam Nguem 3 dams in Laos, and for a pending bid as an IPP.

The company would rely on its own capital in the early stages of the plan due to its financial strength, with retained earnings of Bt18.7 billion, working capital of Bt11.23 billion and cash flow of Bt2 billion each year. However it must borrow to finance the later projects that need huge capital.

It is to spend Bt2 billion for this year's investment and Bt3 billion next year. The huge investments will be made in the fourth and fifth years of the plan.

Narong said Ratch was set on joining the IPP bidding for gas power plants, as the Energy Ministry had not specified the type of fuel to be used at the new plants. Ratch and Tri Energy, 50-per-cent owned by Ratch, would join the bidding separately, as the company would, at the same time, cooperate with other partners in the bidding.

"The company has prepared for bidding, both for gas and coal-fired power plants. We have made less preparation for the coal-fired power plants, so we will not go fully on those plants," he said.

Narong said the company's plan for the bidding would depend on the ministry's request for proposal, but the number of power plants bid for would be appropriate. The company has prepared for IPP bidding in many areas, but not Rayong.

The construction of the Nam Nguem 2 dam worth Bt30 billion is already four months ahead of the plan. It is to operate in 2013 as scheduled after test runs in 2010 and 2011.

The company's major overhaul operations would cause the revenues for this year to be lower than last year, but its performance next year is likely to improve due to increasing income, without any major overhaul needed.

Narong said the company was interested in power production for industrial estates, as demand on the general grid is expected to decline continually amid strong competition.

The company also plans to join private companies to run power-plant projects in Burma.

Anoma Srisukkasem

 The Nation