Thailand: Ratch amps up 37% in nine-month profit

Thailand: Ratch amps up 37% in nine-month profit

SET-listed Ratchaburi Electricity Generating Holding Plc (Ratch), Thailand's
largest private power producer in terms of capacity, posted a 37% rise in
net profit in the first nine months of 2016, largely because of additional
capacity at a coal-fired power plant in Laos.

Chief executive Rum Herabat said Ratch had a net profit of 3.2 billion baht
in the first nine months, up from 2.3 billion in the same period last year.

For the third quarter alone, the company had a net profit of 841.5 million
baht, up from 35.3 million a year earlier.

The earnings gains this year resulted from additional equity-based profit at
existing joint ventures, Mr Rum said.

Those higher income came mostly from the Hongsa coal-fired plant in Laos.

"The company has continued to invest more in power-generating business and
diversified into other sectors to strengthen its financial status," he said.

One new investment project was the 80-megawatt Mount Emerald wind farm in
Australia, where the project and financing deal were done via its
subsidiary, Ratch-Australia Corporation Ltd, in which it owns an 80% share.

The project is worth A$258 million (6.9 billion baht) and construction is
expected to start this month. The commercial operation starting date is
slated for September 2018, said Mr Rum.

The company plans to continue expanding its power-generating capacity both
from renewable and fossil-fuel sources in Asia-Pacific countries.

Ratch announced earlier this year its diversification into infrastructure
segments such as water and smart grids.

It is also conducting feasibility studies on water utility businesses in
Myanmar and Laos.

Ratch also joined with BTS Group Holding Plc and Sino-Thai Engineering &
Construction Plc to submit a bid under the name "BSR Joint Venture" on the
construction of rail projects in Bangkok. The rail projects are the MRT Pink
Line (Khae Rai-Min Buri) with a total track length of 34.5 kilometres, and
the MRT Yellow Line (Lat Phrao-Samrong) with a total track length of 30.4km.

RATCH shares closed Friday on the Stock Exchange of Thailand at 50.25 baht,
down 50 satang, in trade worth 110 million baht.

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Link to Original Article:
http://www.bangkokpost.com/business/news/1134685/ratch-amps-up-37-in-nine-mo
nth-profit

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com