Ratchaburi Electricity Generating Holding says it has improved its strategies for managing its assets in parallel with investment expansion with the goal of raising its enterprise value to Bt280 billion by 2023 from Bt108 billion now.
In the first quarter, Ratch recorded Bt12.7 billion in revenues and Bt2.365 billion in profits.
The primary sources of income were the Ratchaburi, Tri Energy and Ratchaburi-Power power plants, those plants operated by Ratch-Australia Corp, and renewable-energy power stations in Thailand.
Pongdith Potchana, chief operating officer of Ratch, said the company focused on operational excellence in its existing power plants, the company’s key assets. Utilisation of the plants’ full efficiency and capitalisation of non-performing assets are prioritised to increase income to the maximum.
About 90 per cent of Ratch’s main power facilities are in Thailand, followed by Australia. As such, managing the domestic plants’ efficiency becomes the significant factor to meet the company’s long-term goals. This includes consistent periodical plant maintenance, management of spare parts and equipment inventory to keep costs down, and securing cost controls in the areas of power generation, operation and maintenance, and financing.
The company plans to set up a Bt15-million performance centre in its headquarters this year. The centre will be a base for monitoring power plants’ operational efficiency, with the data used to make improvements.
Ratchaburi Power Plant targets overall cost reductions of 5 per cent, including a 0.5-per-cent cut in fuel costs. Tri Energy plans to improve its power-generation efficiency to increase revenue by Bt150 million this year.
In the renewable-energy segment, eight solar farms in the Solarta project aim to enhance production efficiency by 1 per cent and trim operating and maintenance expenses by 5 per cent. In the meantime, the three solar farms in Nakhon Ratchasima are being upgraded towards a combined generating capacity of 10.99 megawatts.
Ratch will recognise additional income from the 112MW Unit 1 of the Ratchaburi World Co-generation plant and 9.9MW Songkhla biomass power project after they commence commercial operations this year, Pongdith said.
In parallel, investment planning for new potential projects is under way in both the domestic and overseas markets.