RATCHABURI Electricity Generat-ing Holding says its strategy will shift more to expansion into new business besides power and energy, and overseas investment, especially in Asean countries.
It targets capacity equivalent to 10,000 megawatts by 2023, with 20 per cent of that from renewable sources, so as to serve the country’s policy to reduce greenhouse-gas emissions.
In the first half of 2016, the company recorded profit of Bt2.36 billion, increasing by 2.3 per cent over the same period of last year, chief executive officer Rum Herabat told a news conference yesterday.
He added that Ratch’s growth strategy in the revised plan would heavily emphasise securing existing operations and enhancing organisational competency.
“We will drive growth by seeking new markets for acquiring expansion in electricity and energy business as well as extending into new businesses,” he said.
“For Thailand, Laos and Australia, our existing operations, the company will optimise returns of our commercially operated power plants and look for value-added business opportunity for future expansion. Meanwhile, the enhancement of the company’s competency will prioritise project risk management in relation to our overseas investment ambitions.
“Generally, we identify three groups for potential markets and overseas investment destinations: neighbouring countries, including Myanmar and Cambodia, seen as top priorities due to benefit for national-power-grid security; Asean nations, including Indonesia, the Philippines and Vietnam; and Asia-Pacific countries Japan and China,” he said.
The company is negotiating and conducting feasibility studies for power projects, renewables and related businesses in the targeted countries. It is expected that many projects will be considered for decision this year.
In Thailand, Laos and Australia, the existing operating bases, the company is formulating investment plans for renewable projects and new businesses. In Thailand, Ratch has decided to participate in the bidding for the Yellow and Pink lines of the Greater Bangkok urban-rail project because of confidence in its extensive engineering experience and considerable expertise in electric power.
Ratch strongly believes that the target of 10,000MW capacity equivalent will be achieved, he added.
In the first six months of 2016, the company realised additional capacity of 329.49MW, comprising 250.4MW from its Hongsa power plant, Unit 3; 55.65MW from Nava Nakorn Electricity Generating (NNEG) power plant; and 23.44MW from EDL-Generation in Laos.
Additionally, four projects under construction, with total capacity of 359MW, are progressing as planned.
The company said it was satisfied with its first-half financial performance, thanks to the 121-per-cent increase in profit sharing |from joint-venture entities to Bt1.236 billion, while the overseas revenue portion gradually grew to 8 per cent of the total, amounting to Bt2.091 billion, whereas 4-per-cent growth was seen last year.
In the first half, the company posted revenue of Bt27.399 billion, which included Bt23.323 billion in electricity sales from its Ratchaburi and Tri Energy power plants.
Under its current asset portfolio, Ratch owns a combined equity capacity of about 6,980MW, comprising 4,948.59MW (71 per cent of total capacity) from domestic projects and 2,031.42MW (29 per cent) from international projects.
In terms of generation fuels, there are fossil-fuel capacity of 6,085.97MW, accounting for 87.19 per cent of the total, and clean and renewable energy of 894.04MW (12.85 per cent). The company aims to increase the clean and renewable power portfolio to 20 per cent of the entire capacity goal of 10,000MW by 2023.