Ratch allots Bt10 billion for investment

Thailand, Laos, Australia remain power company's top destinations

Ratchaburi Electricity Generating Holding (Ratch) has allocated about Bt10 billion this year for investment in domestic and overseas ventures to drive steady revenue growth.

The investment budget is for developing a total of seven existing and new projects in Thailand, neighbouring countries, the Philippines, Australia and New Zealand.

The company's 2013 strategy continues to focus on investment in three core businesses: power generation, renewable energy, and business associated with power generation.

Chief executive officer Noppol Milinthanggoon yesterday said the company still attached most weight to investment in Thailand, Laos and Australia, its existing business bases.

Domestically, the company has targeted IPP (independent power producer) bidding and expansion in renewable energy and small power projects.

Meanwhile, there is also more potential in both small and large hydropower plants in Laos, while there are huge opportunities in renewable-energy business in Australia, he said, adding that the company was also looking for potential small projects in Cambodia.

"Under the company's 2013 investment plan, we have allocated Bt8 billion for acquiring new ventures. The company is seeking opportunities in the Philippines and New Zealand, focusing on mergers and acquisitions and brown- and greenfield investment, and in Myanmar where foreign investment has recently been officially allowed.

"In the past year, it appeared that the company's revenue was increasingly generated from overseas operations, representing 11.41 per cent of the total. Exceptional satisfaction in our growth and expansion reflects efficiency and effectiveness in our business strategies, and we are confident that our profitability and capacity will continue growing this year," Noppol said.

Last year, the company realised a shade over Bt60 billion in revenue, 31 per cent higher than in the previous year. Profit was recorded at Bt7.72 billion, increasing 59 per cent year on year and amounting to Bt5.33 earnings per share.

Improved results were mainly derived from Ratch-Australia Corp (RAC), which recorded earnings of Bt783.68 million, partly due to the benefits from divestment of the Loy Yang-A power plant in Australia, for which the company gained 20 million Australian dollars (Bt617.7 million) in cash and a 15-year scheduled payment option agreement.

During the year, Ratch also realised RAC's profits of Bt1.06 billion and compensation from termination of the Collinsville coal-fired power plant's power purchase agreement.

As of December 31, Ratch booked Bt96.81 million in assets and 6,303 megawatts of capacity, consisting of 4,586.5MW in Thailand (72.77 per cent of capacity), 1,206.5MW in Laos (19.14 per cent) and 510MW (8.1 per cent) in Australia.

Renewable-energy capacity accounted for 156.45MW, or 2.5 per cent of the total.