RATCH reviewed growth strategy to boost up its competitive advantage strengthen current bases, access new markets, diversify to new value added power business lines

Energy Press Releases Monday November 11, 2013 14:56
Bangkok--11 Nov--Aziam Burson-Marsteller

Ratchaburi Electricity Generating Holding PCL (“RATCH”) disclosed its growth strategy for enhancing potential and competitive advantage emphasizing on strengthening its current business bases and extending its presence in new potential markets where there are numerous opportunities in greenfield development and brownfields merger & acquisition. Additionally, the company planned to diversify its investment into power value-chained business.

Mr. Pongdith Potchana, Chief Executive Officer of RATCH, said that the company has reviewed its business strategy to cope with changing and intensified competition in domestic and international arenas and to ensure that it can continue growing and generating good return to shareholders, relevant stakeholders and society. The redefined strategy includes utilization full potential of existing assets, looking for attractive greenfield projects in the established markets such as Thailand, Laos and Australia, seeking for partnership to expand generation portfolio in new markets such as Myanmar, Indonesia, Vietnam and the Philippines, exploring higher-valued business along power value chain, and enhancing organizational readiness and capabilities to enable the company’s strategy towards its goals.

Mr. Pongdith added that “During 13 years of operation, RATCH has grown strongly and stably proven by its 4.28 times or 329% capacity growth from 1,470 megawatts in 2000 to 6,303 megawatts at present. The assets have increased 2.48 times or 149% from 37 billion baht when established to 92 billion baht as of end of June 2013. The company has recorded 38.6 billion baht retained earnings at 30 June this year and dividend yield is at 4.5%. Laos and Australia besides Thailand are main RATCH’s sources of income and the company has continued investment expansion in those counties. In Australia, it is underway development of “Collinsville Energy Park” where coal-fired Collinsvile power plant compound has been redeveloped to become Solar PV and Solar Thermal Farms and there are development plan for natural gas- fired power plant as well”.

RATCH currently has 26 operating power stations and 6 projects under development and construction including 210-megawatt Ratchaburi World Cogeneration (40% equity owned), 122-megawatt Nava Nakorn Cogeneration (40% equity owned), 60-megawatt Khao Kor Wind Farm (55% equity hold), 9.9-megawatt Songkla Biomass (40% equity hold), 1,878 megawatt Hongsa coal-fired power plant (40% equity owned), 410-megawatt Xepian Xenam-noi hydro power project (25% equity owned). These projects are progressed as planned.

In future, RATCH aims to expand its portfolio by considering coal-fired, hydro and renewable power projects in forms of greenfield development and merger & acquisition in brownfields and operating assets in Thailand and aboard. Also it will explore diversified investment in new business line of electricity generation and energy.

“The company targets to achieve project investment in Myanmar, Indonesia, Vietnam and the Philippines. According to the company’s market potential assessment and analysis, it is founded that there are huge opportunities in coal fired and hydro power project in Myanmar, Indonesia and Vietnam while in the Philippines the merger and acquisition is interesting,” Mr.Pongdith concluded.


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