EGCO sees net profit drop to B6.9 bln in 2008
The Electricity Generating Plc (EGCO) saw its net profit from last year’s operations drop 18 percent from 2007 to about 6.93 billion baht and plans to invest more in neighbouring countries this year.
Vinit Tangnoi, president of EGCO Group, on Tuesday told reporters that the EGCO Group’s total assets had however increased nine percent from the end of 2007 to 58.33 billion baht while the total liabilities rose 10 percent to almost 12.79 million.
Although the National Economic and Social Development Board (NESDB) has forecasted that Thailand’s gross domestic product (GDP) would this year grow not more than two percent, with a domestic investment slowdown and a decrease of electricity demand, Vinit said, the situation should not have any impact on EGCO Group’s operations within this year but the company’s business expansion in the future. Therefore, he said, the company will give more emphasis on expanding investment opportunities in the markets in Southeast Asian countries, especially on fuel projects, and focusing on prospective domestic projects which would use renewable energy as fuel sources to sustain EGCO group’s market share as a leader in energy sector.
In 2009, the company’s strategies may involve in acquiring stake or additional shares in approved projects and projects under construction as well as continuing its study and development of renewable energy projects using wind, solar cell and biomass as commercial fuel sources.
Regarding the profitability, EGCO Group has been focusing on effective asset management of existing assets, especially at Kaeng Koi 2 combined-cycle power plant in Saraburi Province, run by Gulf Power Generation Co., Ltd., and BLCP coal-fired power plant in Rayong Province, under BLCP Power Ltd, which have been operating for a year, and at Quezon Power Project in Philippines which EGCO Group has acquired in December last year and also Nam Theun 2 Project in Lao PDR whose construction is expected to be completed by December this year.
Currently, EGCO Group is owned 25.41 percent by state-run Electricity Generating Authority of Thailand (EGAT), 22.42 percent by OneEnergy Thailand and the remaining 52.17 percent by Thai and foreign investors. The group currently operates a total of 13 power plants with a total capacity of 4,239.3 MW.
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