Electricity Generating Public Company Limited or EGCO Group has been moving forwards to be a regional power company in Asia Pacific by continually focusing its electricity business investment which is the area of its expertise in ASEAN and Asia Pacific region. The Company expects 10,000 million Baht operating profit to be achieved by 2017.

Mr. Chanin Chaonirattisai, President of EGCO Group, revealed the Company’s business directions as he assumed the president position, “EGCO Group will continue to focus its investment in electricity business, which is the area the Company has expertise and experiences. EGCO Group aims to become the regional power company and to continuously maintain the return on equity (ROE) at 10% minimum. To achieve these goals, the Company will employ three key strategies: ensuring maximum efficiency of existing power plant, managing projects under construction to be completed as scheduled and within the planned budget, and seeking new investment opportunities through acquisition of commercially operating assets so to immediately recognize incomes as well as developing new projects within the existing plant sites and pursue greenfield project investments for long-term income generation.”

“In the next two years, we will focus more on overseas investment, especially in the countries where the Company has strong presence, such as the Philippines and Lao PDR as well as Indonesia and Australia. We will also consider investment opportunities in other ASEAN countries, such as Myanmar, Vietnam and Malaysia and we aim to increase the Company’s revenues from overseas investment from the current 37% to 50%, We are also well prepared for power investments in Thailand as new opportunities arise”, said Mr. Chanin.

So far, EGCO Group has successfully expanded its overseas investment in 4 countries with 5 power projects being 2 coal-fired power plants, “Quezon” power plant (100% shares) and “Masinloc” power plant (40.95% shares) in the Philippines, “Nam Thuen 2” hydroelectric plant (35% shares) in Lao PDR, “Star Energy” geothermal power station (20% shares) in Indonesia and “Boco Rock” wind farm (100% shares) in Australia. Those investments could be a good proof of EGCO Group’s success in the overseas markets.

Presently, the Company has additional 3 overseas power projects on progress being “Xayaburi” hydroelectric plant in Lao PDR, “San Buenaventura” and “Masinloc Unit3 ” coal-fired power plants in the Philippines with total equity contracted capacity of 505 MW. EGCO Group has allocated 42,000 million Baht investment budget for these projects.

For domestic investment, the Company has currently 5 domestic projects under construction which will start commercial operation from 2016 to 2019. These projects have total equity contracted capacity of 1,338 MW which include “Khanom (Unit 4)” in Nakhon Si Thammarat, “Chaiyaphum Wind Farm” in Chaiyaphum, three Small Power Producer (SPP) projects, namely “TP Cogen” and “SK Cogen” in Ratchaburi and “TJ Cogen” in Pathumthani. Such domestic projects requires EGCO Group’s 49,000 million Baht investment budget. The Company is also well prepared for possible investment opportunities in the country, including renewable energy projects and IPP bidding if a new round of bid is called.

Furthermore, EGCO Group is studying the potential investment opportunities around 6 projects both domestic and in the region, such as Lao PDR, Myanmar, Indonesia and Vietnam with an aim to continuously increase the Company’s earnings for both short and long terms.

“We strongly believe that our business strategies will drive continuous growth for EGCO Group while offering the best possible short and long term returns for shareholders. If everything goes well as planned, we will see the Company’s operating profit to reach 10,000 million Baht by 2017. In addition, to become a regional power company in the Asia Pacific, EGCO Group would need to strengthen its organization, especially our human resource development to be most competent and resilient in response to business challenges and that corporate culture and the Company’s core values would be revisited. EGCO Group will strictly adhere to the good corporate governance principles as we have always been to ensure the sustainable growth,” concluded Mr. Chanin.

For the third quarter of 2015 ending 30 September 2015, EGCO Group’s operating profit before the effects of Foreign Exchange (FX) and Deferred Tax was 2,662 million Baht, a rise of 512 million Baht or 24% increase, as compared to the same period last year. Considering the first nine months of 2015, the Company reported 6,561 million Baht operating profit before the effects of Foreign Exchange (FX) and Deferred Tax, which reflects the Company’s real performance.

About EGCO Group
Ending 3rd quarter of 2015, EGCO Group runs 23 operating power plants with total equity contracted capacity of 3,795 MW in 5 countries in Asia Pacific region – Thailand, Lao PDR, the Philippines, Indonesia and Australia. There are 7 projects under construction and development with total equity contracted capacity of 1,721 MW. The Company’s power plants generate electricity using several fuel sources such as natural gas, coal, biomass, waste, hydro, solar, wind, and geothermal.