EGCO Group Reports 2018 Impressive Profit over THB 21,000 million
Electricity Generating Public Company Limited or EGCO Group announced a net profit in 2018 of 21,073 million baht and expected to pay the final dividend from the second-half-year operation of 2018 at 3.50 baht per share. Moving ahead in 2019, the Company will continue to focus on pursuing overseas power business and related business opportunities in the Asia Pacific region.
Mr. Jakgrich Pibulpairoj, President of EGCO Group disclosed that “EGCO Group’s 2018 performance satisfactorily exceeded its expected goals. Net profit was 21,073 million baht, an increase of 9,255 million baht or 78%. For the operating profit, the Company posted 23,372 million baht, an increase of 14,104 million baht or 152% compared to the previous year. Major factors contributing to high profitability are the gains amounted 14,177 million baht from divestment of three assets – East Water, GIDEC and MPPCL. The Company, however, recorded the normal operating profit of 9,195 million baht, a decrease of 73 million baht. Considering such performance, the Company’s Board of directors will propose to the Shareholder’s 2019 Annual General Meeting to consider the dividend payment from the second-half-year operation of 2018 at 3.50 baht per share. Upon the approval of the shareholders, the full year dividend payment, therefore, will total to 9.50 baht per share.”
Highlight of the Company’s performance included the 49% investment in Paju Energy Service Co., Ltd., the owner and operator of the 1,823MW Paju combined cycle power plant in Gyeonggi province, South Korea. For this investment, EGCO Group has partnered with SK E&S Co., Ltd. which has expertise in LNG business. This partnership not only allowed EGCO Group to expand its business to a new market in the Asia-Pacific, but also opened the door for the Company to enter into LNG business, a high potential business in Thailand and other countries in this region in the future. The deal was completed on January 15, 2019.
Mr. Jakgrich added, “Looking at 2019, EGCO will continue to focus on sustainable growth and high return for shareholders. We will seek new investment opportunities in power business, an area of our expertise, in both fossil fuel and renewable power plants. We will find new investment opportunity to grow in related business, especially in the Asia-Pacific. At the same time, we will optimize the efficiency of commercially operating power plants and ensure that the projects under construction will be completed as plan and budget.”
“EGCO Group views that there is limited growth opportunity in the local power business in Thailand. We, therefore, will expand our investment mainly in other countries, especially in ASEAN countries where we already operate, such as Laos, the Philippines and Indonesia. At the same time, we will expand to other countries in the Asia-Pacific, such as South Korea. We will seek opportunity to invest in related businesses, such as LNG, through cooperation with strong partner, like SK E&S. In Thailand, we are ready to make investment in support of the government’s policy and the new PDP 2018. For IPP, we are ready to participate in the bidding in any area across the country, especially in the west, south or east of Thailand,” he said.
For 2019, EGCO has allocated around 30,000 million baht investment budget for 3 overseas projects under construction and the acquisition transaction of Paju power plant in South Korea which has already been completed on January 15, 2019. The three power projects in pipeline with total equity contracted capacity of 544 MW consist of the 160MW Xayaburi power plant in Laos PDR, the 223MW San Buenaventura power plant in the Philippines which both projects will be completed and start commercial operations in 2019, and the 161MW Nam Theun 1 power plant in Laos PDR which will be completed and start commercial operations in 2022. The investment budget, however, does not include new investment projects and 2 projects under development such as Quang Tri coal-fired power project in Vietnam and expansion of Star Energy geothermal power project in Indonesia.
“In addition to creating continuous growth for the shareholders, EGCO Group has always focused on operating our business under good corporate governance principle, transparency, and social responsibility. EGCO Group is a power producer in Thailand and across the Asia-Pacific, relying heavily on natural resources in our power generation activity. We realize that our responsibility towards community, society and the environment is very important. We have been involved in improving quality of life of the people living in communities surrounding our power plants everywhere we operate. We have continuously promoted youth’s education and learning on energy and the environment by introducing the Youth Development Project and Khanom Power Plant Learning Center. We have participated in preserving and rehabilitating the country’s major watershed forests through the Thai Conservation of Forest Foundation, a charitable organization established and supported by EGCO Group, throughout the past over 10 years,” Mr. Jakgrich concluded.
