Ratchaburi Electricity Generating Holding (RATCH), the country's largest independent power producer, aims to acquire 10 overseas power plants with a combined installation capacity of 2,000 megawatts by 2016.
Two deals are expected to conclude this year, a gasfired power plant and another fuelled by gas, coal and renewable energy. Located in neighbouring countries, they have an installation capacity of 300400MW each, said Peerawat Pumthong, senior executive vice president for business development.
"These two deals are the most advanced. We have approached 10 companies," he said, adding that RATCH expects to acquire no less than 25 per cent in each target company.
RATCH will finance the deals through cash and debentures, said Darunee Abhinoraseth, senior executive vice president for finance. The company has cash of Bt10 billion and can raise another Bt7.5 billion via debentures. She expects the company to need huge investment next year, if the deals can be finalised this year.
Peerawat said Ratch was also seeking the opportunity to invest in small and very small power producers, cogeneration plants, and renewableenergy plants such as solar, wind and biomass, in the second half of this year. It aims to expand its investment in solar and wind farms by 30MW and 50MW respectively by 2012.
RATCH recently concluded a deal to acquire a 60per cent stake in Yanhee Solar Power to invest Bt356 million in the 3MW solar farm in Ayutthaya. Yanhee plans to invest further in the solar farm to increase its capacity to 50MW in the near future, and RATCH is interested in coinvesting in the project.
Peerawat said the company now aims for an initial operating date for the Nam Ngum 2 hydropower plant of December 27, earlier than the previous schedule of next March. As a result, it would gain additional revenue of roughly Bt250 million over the previous target of Bt700 million in 2011. Meanwhile, the Hongsa Thermal Power Plant, for which RATCH recently signed the power purchase agreement (PPA) with the Electricity Generating Authority of Thailand, is scheduled to commence operations in 2015.
Darunee said RATCH recorded consolidated net profit of Bt1.524 billion in the second quarter of this year, decreasing by 25.85 per cent year on year mainly because of a decrease in its availability payment, depending on the PPA. As well, it had to pay full income tax of 30 per cent after the taxbreak promotion of the Board of Investment expired in April. However, the first half net profit was better than its earlier estimation thanks to efforts to cut operating costs and shorten plant shutdown periods.
She said the company forecast its net profit in the second half of this year to be lower than the firsthalf figure of Bt2.982 billion. The net profit would rebound in 2011 according to the PPA.
RATCH booked consolidated net profit of Bt6.7 billion in 2009.