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The move is in response to lower electricity demand resulting from the economic slowdown.

Managing director Noppol Milinthanggoon yesterday said the downward revision was also in line with the Kingdom's 15-year power-development plan, which was under amendment and tended to lower its forecast for electricity consumption.

However, he said the company would continue to invest in power generation, both locally and internationally, by funding power plants fuelled by mainstream and alternative energies.

At present, Ratch has a combined power-generation capacity of 5,478MW. Of that, 4,347MW is generated commercially, while the rest is under development, including the 85-per-cent completed Nam Nguem 2 hydropower plant in Laos.

The first phase of the plant is expected to be operational next year, and this will help the company generate more revenue in the future.

Noppol said Ratch posted a second-quarter net profit of Bt2.06 billion, up 62.48 per cent year on year. For the first half, it posted a net profit of Bt3.9 billion, up 31.33 per cent year on year.

"These results reflect the company's efforts to achieve its target," he said.

Noppol said the company had successfully negotiated with banks to reduce its interest payments, lowering its financial cost of Bt540 million in the first half.

In addition, Ratch has invested more in small and very small power plants, adding 2.63MW to its installed power capacity. The company has raised its stake in Sustainable Energy to 30 per cent.

Sustainable Energy develops wind power plants with power generating capacity of 60MW.

Meanwhile, Kim Eng Securities (Thailand) said in its latest research report that Ratch's second-quarter net profit had beaten expectations by 4 per cent.

Even though it shut down some operations of its co-generating power plants, Ratch has received more income contributions from its subsidiary and affiliate.

The report said Tri Energy and Ratchaburi Power, of which Ratch now owns 50 per cent and 25 per cent, respectively, contributed a combined net profit of Bt412 million in the second quarter, up from Bt65 million in the same period last year.

Ratch is expected to post a lower normalised profit in the third quarter, Bt2.08 billion, because it will have a higher tax burden.

The broker expects sales of Bt42.28 billion for Ratch this year, up from Bt42.21 billion last year. Ratch's normalised full-year net profit is forecast at Bt5.63 billion, down from Bt6.49 billion last year.

Ratch yesterday closed at Bt37.50, unchanged from Tuesday.