Ratchaburi Holding Announces Q2/2010 Operating Performance With Net Profit of 2.982 Billion Baht

Energy Press Releases Friday July 30, 2010 12:01
Bangkok--30 Jul--Ratchaburi Electricity Generating Holding
  • Gear up on renewable energy by acquiring 60%stake of Yanhee Solar Power, the developer of 3 MW-Solar Power Project expecting COD by October and prepare for capacity expansion in solar power by 30 MW as well as increase more 50 MW in wind power project
  • Move on feasibility study for more than 10 project with approximately 2,000 MW in domestic and foreign

The Company's net profit was 2,982.20 million baht or 2.06 baht per share, a decrease of 23.53% from the same period of the previous year. In Q2/2010, the Company reports net profit of 1,524.92 million baht or 1.05 baht per share, decrease of 25.85% compared to Q2/2009. The declines stem from increases in energy costs and energy payments caused by its full commercial operation performance. In a meantime the Company gains a decrease in its availability payment. Nevertheless, the Company commits to pay more in its income tax.

Mr. Noppol Milinthanggoon, the President of Ratchaburi Electricity Generating Holding PCL revealed that in the first half of 2010, the Company saw progress in project development and its business expansion both in IPP and renewable energy development projects: the Hongsa Thermal Power Plant project and the Sai-Sena Solar Power Plant. Recently, Hongsa Thermal Power Plant, with 40% stake in Hongsa Power Co., Ltd. (HPC), has nearly accomplished a Loan Agreement to support the ongoing construction and commissioning process. Moreover, the Company invested in the 3 MW-Sai Sena Solar Power Project by acquiring a 60% stake of Yanhee Solar Power Co. Ltd., the project developer. The commercial operation date (COD) of this project is planned for October 2010. The Company strongly believes that it would be a pilot project, which could enhance capacity expansion in solar power by 30 MW in the near future.

As per the Company’s operating performance for the second quarter 2010, net profit is 1,524.92 million baht, which is a decrease of 531.66 million baht, or 25.85% compared to the same period of last year. The Company generates 12,521.54 million baht in total revenue consisting of 11,999.84 million baht in sales revenue, 33.06 million baht in management service fee, 80.84 million baht in interest and other incomes and 407.80 million baht from the Company’s share of its affiliates’ profits. The Company’s increase in total revenue for Q2/2010 is 2,868.66 million baht, compared with the same period of last year. This is according to the less of the reserve shutdown and planned shutdown for maintenance of Ratchaburi Power Plant, causing energy cost increased by 61.77%. However, the Company gains a decrease of 319.30 million baht in its availability payment caused by the lower rate of Availability Payment which refers to the Power Purchase Agreement.

For the shared profit from the Company’s affiliates in the Q2/2010, the Company gained 407.80 million baht, which represents a decrease of 198.38 million baht, or 32.73% from the same period last year due in part to exchange rate fluctuations, which cost 222.33 million baht.

The Company’s cost of sales and other expenses is 10,996.62 million baht, consisting of 10,174.58 million baht in cost of sales, 220.79 million baht in administration and other expenses, while the interest payments are 164.74 million baht, for a cumulative decline of 62.29 million baht or 27.44% compared to the same period last year (227.03 million baht). The interest rate is less than the former year's rate. Three blocks of combined cycle of the Ratchaburi Power Plant have ended the period for tax exemption from the BOI and have started paying income tax since April 18, 2010, the Company anticipates paying tax in the amount of 436.51 million baht which is higher than the amount paid in 2009 (291.40 million baht) of 145.11 million baht.

In terms of significant progress in the second half of the year, the 615 MW-Nam Ngum 2's Hydroelectric Power Project increased its reservoir capacity by 326 meters for a total or 1,233.93 cubic meters and is set to start the wet tests during August till November and expect to run its initial operating date in December 2010. In addition, the 390 MW-Xe Pian Xe Namnoy's Hydroelectric Power Project in Lao PDR is expected to accomplish its Tariff MOU with the Electricity Generating Authority of Thailand based on the resolution of the Energy Policy and Planning Office. For foreign investment projects, the Company is trying to conclude negotiation with strategic partners within this year.

Regarding the renewable energy, the Sai Sena Solar Power Project in Ayuthya province with installed capacity of 3 MW and a project value of 356 million baht, in which the Company holds a 60% stake through Ratchaburi Energy Company Limited, has entered a Power Purchase Agreement (PPA) with the Provincial Electricity Authority (PEA). This solar power project has gained full tax exemption from the Board of Investment (BOI). The project will effectively generate income for the Company after its commercial operation in October 2010. The Company believes that Sai Sena Solar Power will be a pilot project for the development of 30 MW in capacity from future solar power projects whereas wind power projects will be able to expand its capacity by approximately 50 MW.

“The Company continues to look for foreign and domestics investment opportunities in the power sector and related businesses. The twin objectives of the investments are to increase the Company’s total installed capacity as well as its profitability. We currently have 10 projects under feasibility study both domestic and abroad, which will add more 2,000 MW in installed capacity. This includes 100 MW in country's renewable energy” Mr. Noppol concluded.

Company Information

Established in March 2000, Ratchaburi Electricity Generating Holding PCL. operates its business in power generation, renewable energy and other related businesses. Currently, the Company has its total installed capacity of 4,347 MW deriving from 4 commercial operating projects. Whereas, 4 IPP projects are ongoing development with total installed capacity of 1,111 MW and SPP and renewable energy projects has another 21 MW in total installed capacity. Considering the mentioned commercial operating and ongoing development projects, the Company will achieve the total installed capacity of 5,481 MW.

The commercial operating projects located in Ratchaburi province are 3,645 MW-Ratchaburi Power Plant (99.99% stake), 350 MW-Tri Energy Power Plant (50% stake), 350 MW-Ratchaburi Power Power Plant (25% stake) whereas 1.75 MW-Pradu Thao Power Plant locates in Sukhothai province.

The ongoing IPP projects in Lao PDR, comprising 153.75 MW-Nam Ngum 2 Hydroelectric Power Plant (25% stake), 751 MW-Hongsa Thermal Power Plant (40% stake), 110 MW-Nam Ngum 3 Hydroelectric Power Plant (25% stake) and 93 MW-Xe Pian Xe Nam Noy Hydroelectric Power Plant (25% stake)

SPP and Renewable Energy projects are 18 MW-Khoa Kor Wind Energy in Phetchabun (30% stake), 0.875 MW-Extension of Pradu Thao Power Plant and 1.8 MW-Sai Sena Solar Power Project in Ayuthya (60% stake).
Please search further information via www.ratch.co.th
For more information, please contact
Public Relations Department, Ratchaburi Electricity Generating Holding PCL.
Wiwan Phayakvichien and Khanut Bunnooklub
Tel: 0 2794-9941-3 E-mail wiwanp@ratch.co.th

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