Thailand: Gunkul sees profit from construction

Thailand: Gunkul sees profit from construction

SET-listed Gunkul Engineering Plc, a provider of engineering services and
renewable power, remains confident that robust revenue from construction
will offset smaller gains from renewable power capacity.

Managing director Somboon Aueatchasai said major contractor service jobs,
including submarine cable and smart grid equipment, are expected to generate
revenue for the company this year. That would support Gunkul's full-year
revenue as the company waits for new renewable power to enter the grid, he
said.

Mr Somboon said contractor services, which the state utility will open for
bidding later this year, could be worth more than 30 billion baht, including
a project to put power lines and other communication cables underground.

He said Gunkul recently won a bidding to construct a submarine cable project
worth 87.28 million baht in Koh Prathong, Phangnga province. The firm also
has backlog projects on hand totalling 1 billion baht, he said.

"We would be quite busy with a lot of construction jobs that would help
prevent our 2017 total revenue from slipping," Mr Somboon said.

He said that while Gunkul failed to be awarded the operation licence to
develop a solar farm, it has a chance to get construction jobs to construct
solar farm of those who was granted the licences.

For renewable power business, chief finance officer Thitipong
Techaratanayuenyong said the company expects additional power-generating
capacity from two domestic wind farms with a combined 110 megawatts and
another two solar farms in Japan's Sendai and Kimitsu with a combined
capacity of 82MW.

He said Gunkul budgeted 6 billion baht for capital expenditure next year,
most of which is set for construction of new renewable projects to make the
company's total capacity to reach 487MW within 2019.

For longer-term business development, Gunkul is negotiating with other firms
as well as local governments to increase its power generating capacity by
another 1,200MW for both acquiring stakes in renewable companies as well as
to develop a green field project abroad.

Of the total 1,200MW, Gunkul is approaching around 550MW from projects in
Japan, 200MW from projects at home, 280MW in Vietnam and 160MW in Malaysia.

GUNKUL shares closed yesterday on the Stock Exchange of Thailand at 3.80
baht, up two satang, in trade worth 26.5 million baht.

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Link to Original Article:
http://www.bangkokpost.com/business/news/1310807/gunkul-sees-profit-from-con
struction

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com