The key earnings driver was the first earnings contribution of Bt1.27 billion from BLCP, a coal-fired power plant with a capacity of 1,400 megawatts in which Electricity Generating holds a 50-per-cent stake. This compensated for the sharp earnings drop from Khanom Electricity Generating (Kegco) and Rayong Electricity Generating (Regco), based on lower capacity in a power-purchase agreement with Electricity Generating Authority of Thailand.

The broker expects Electricity Generating to report a return to ongoing growth during this quarter from BLCP's full-quarter earnings. Also, phase 1 of the Kaeng Khoi 2 project, its 50-per-cent-owned venture with a capacity of 734MW, comes on line this month, followed by phase 2 (also 734MW) next March.

Despite the lower capacity rates of both Kegco and Regco, the brokerage believes the earnings contribution from BLCP and Kaeng Khoi 2 will drive a second-quarter net profit, compared with last year's second-quarter net profit of Bt1.58 billion.

The broker also believes the power generator has a high potential to win new independent-power-producer bidding this year. It expects Electricity Generating to win 700-1,400MW, based on facilities, experience, fuel source, location, cost advantage and a strong financial position.