Ratch is confident of winning IPP biding
Ratchaburi Electricity Generating Holding (Ratch) has estimated its third-quarter revenues will drop by 15 per cent from last year, resulting in a 10-per-cent fall in forecast revenues for the entire year, due to a major overhaul, said managing director Narong Sitasuwan.
However, Narong said its financial status remained firm as it prepared to invest in three independent-power-producer (IPP) projects without the need for borrowing. He expressed confidence of winning the IPP bidding. The company intends to initially apply for only gas-powered plants. The major overhaul in its four units caused a reduction in availability payment, which will result in profits falling in the third and fourth quarters. "EBITDA [earnings before interest, tax, depreciation and amortisation] in the third and fourth quarters will be reduced, unlike the second quarter, but it is as we planned in advance," Narong said in a press conference yesterday. The overhaul is to begin in June and finish in December this year. A major overhaul is scheduled to be conducted every six years. Narong said the company was ready to join the IPP bidding, expected to open in May or June. It would participate only in the bidding for gas-powered plants but would partly prepare for coal-powered plants. He was confident of winning the bidding due to his company's good location and low relative costs. "Our liquidity is enough to serve the three IPPs without asking for any loans. Our sites and low cost are our advantages. We can offer prices lower than other companies," he said. The company's retained earnings are currently Bt20.71 billion, with working capital reaching Bt12.35 billion. Cash flow circulated at about Bt2 billion last year. Ratch will attend the bidding by itself and with alliances to construct power plants in existing and new sites, he said. It plans to increase its capacity to higher than 5,000 megawatts in 2011, compared with current capacity of 3,995MW. The company has maintained its five-year investment plan worth Bt20 billion, of which Bt2 billion is for this year's projects. In the first quarter, the company marked a 5.94-per-cent increase in net profits, as its profits before interest and tax rose by 7.36 per cent year on year. The company's equity is already higher than its liabilities.
Anoma Srisukkasem The Nation
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