Thailand: UAC posts higher net profit on renewables

Thailand: UAC posts higher net profit on renewables

UAC Global Plc, an MAI-listed chemical trader that has diversified into
renewable energy, posted a 13% rise in net profit in the first quarter of
this year from rising revenue of new renewable power projects, and growing
demand in the chemical business.

Strong earnings are also encouraging the company to expand into the
neighbouring countries of Cambodia, Laos, Myanmar and Vietnam (CLMV) to
capitalise on rising demand in both power and chemical sectors at a time the
economies are growing, according to its president and chief executive
Chatchaphol Prasopchoke.

In the first quarter of 2017, the company had a total revenue of 377 million
baht, up 15.7% from the same period of last year, when it had revenue of 326
million baht, he said.

Mr Chatchaphol said rising revenue mostly came from renewable power projects
that started commercial operations earlier this year, including solar
rooftop projects and a biomass power plant in Chiang Mai, with a combined
power generating capacity of 12 megawatts.

Demand in the chemical sector also rose higher and helped strengthen the
company's polymer sales, he added.

"We expect an even brighter outlook in the second quarter of this year with
demand for power and polymers remaining strong to yield rising revenue, and
encouraging the company to expand further in neighbouring countries," said
Mr Chatchaphol.

He added the company expects total revenue to rise by 30% to reach 1.8
billion baht this year, up from 1.4 billion baht last year.

He said the company is conducting a feasibility study for the expansion
plan, particularly in CLMV countries.

Mr Chatchaphol said the economies of CLMV countries are growing quickly,
triggering demand for chemicals, especially in painting, garments, and
construction materials sectors.

The company is expected to seal a deal to sell power from its 20-MW power
plant to the Myanmar government within the first half of the year, which is
a part of the company's plan to push total revenue to 1.8 billion baht.

He said the 20MW power plant in Myanmar is worth 1.1 billion baht and the
company is in talks with banks to secure loans for it.

The company plans to double the production capacity of latex to 20,000
tonnes per year through its fully-owned subsidiary UAC Advance Polymers and
Chemicals Co Ltd.

UAC also plans to list UAC Advance Polymers and Chemicals on the Market for
Alternative Investment by 2018 to raise funds for the expansion of its
chemical business.

UAC shares closed yesterday on the MAI at 5.35 baht, down five satang, in
trade worth 1.2 million baht.

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Link to Original Article:
http://www.bangkokpost.com/business/news/1254758/uac-posts-higher-net-profit
-on-renewables

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com