Electricity Generating Public Company Limited or EGCO Group posts strong performance in 2014 with continuous growth and better-than-expected results, caused by the successful construction completion of 2 new power plants starting commercial operation and new investment in 2 commercially operating power plants with immediate earnings. For five-year business direction, the Company will keep its focus in managing projects under construction and development to be completed as scheduled together with expanding its overseas portfolio both ASEAN and Asia Pacific regions. EGCO Group aims at continuously maintain its return on equity (ROE) at 10% minimum.

 Mr. Sahust Pratuknukul, President of EGCO Group said, “For 2014, EGCO Group continued to record better-than-expected operating results. The Company’s assets totaled 160,687 million baht, an increase of 29,567 million baht, compared to 2013. The operating profit before the effects of Foreign Exchange (FX), Deferred Tax, Lease Income and Income from Service Concession was 7,705 million baht, a rise of 330 million baht from the previous year, or 14.64 baht per share. EGCO Group is tireless to focus its efforts in maintaining the return on equity (ROE) at 10% minimum. Its ROE for the shareholders for 2014 was satisfactorily recorded at 10.67% which was higher than target.

In 2014, EGCO Group successfully completed 2 construction projects which started commercial operation and supplied electricity into the system being “Boco Rock Wind Farm” power plant in Australia with total contracted capacity of 113 MW and “Hat Yai Municipality” waste power plant in Songkla with total equity contracted capacity of 3.25 MW.

For the new overseas investments, the Company acquired a 40.95% shares in “Masinloc” power plant with total contracted capacity of 589 MW in the Philippines, as well as acquired 20% shares in “Star Energy” geothermal power station with total contracted capacity of 227 MW in Indonesia. In addition to immediate earning recognition, the two power plants will provide the Company with opportunities for further expansion in the future which will enhance its long-term value.

2015-2019 Business Direction: continually grow with under construction and development projects and keep seeking new opportunities to expand its overseas electricity portfolio

Considering business direction from 2015 to 2019, Mr. Sahust revealed, “We will continue to focus our investment in electricity business, which is the area we have expertise and experience for years. We will concentrate on growth management using 3 strategies which have been deployed since 2011 – ensure maximum efficiency of existing power plant operations, manage the projects under construction to be completed as scheduled and within the planned budget, and seek new investment opportunities.”

In February 2014, EGCO Group acquired 33.33% additional shares in Natural Energy Development Co., Ltd. (NED) which owns and operates Lopburi Solar and Wang Ploeng Solar power plants. This acquisition enabled the Company to be the major shareholder of NED and recognize the additional earnings.

In the next 5 years, the Company will continue to grow constantly as 6 projects under construction and development will start commercial operation from 2016 to 2019. These projects with long term Power Purchase Agreements together have total equity contracted capacity of 1,498 MW which include 5 domestic projects and 1 overseas project, 5 comprising “Khanom power plant (Unit 4)” project in Nakhon Si Thammarat, “Chaiyaphum Wind Farm” project in Chaiyaphum, three Small Power Producer (SPP) projects, namely “TP Cogen” and “SK Cogen” in Ratchaburi and “TJ Cogen” in Pathumthani, as well as “Xayaburi Hydroelectric Power Plant” in Lao PDR. The Company has prepared 44,800 million baht investment budget for these projects in the next 5 years.

Furthermore, the Company is studying on the potential expansion of the 3 overseas power projects being “San Buenaventura” and “Masinloc” coal-fired power plants in the Philippines, and “Star Energy” geothermal power station in Indonesia. Upon the feasibility of such projects, EGCO Group’s total equity contracted capacity would increase by 500 MW with the commercial operations from 2019 onwards and the 38,000 million baht investment would be expected.

“Presently, EGCO Group is studying the potential investment opportunities both in Thailand and ASEAN region. In ASEAN countries, we will co-invest with local business partners to expand the existing power plants and acquire commercially operating assets with focus on Lao PDR, the Philippines and Indonesia where the Company has strong presence. Additionally, we have kept seeking new opportunities to invest in other countries such as Myanmar, with an aim to continuously increase the Company’s earnings both short and long terms. EGCO Group will continue to focus our efforts in maintaining return on equity (ROE) at 10% minimum as achieved from 2011-2014,” concluded Mr. Sahust.

Currently, EGCO Group runs 23 operating power plants with total equity contracted capacity of 3,767 MW in 5 countries in Asia Pacific region – Thailand, Lao PDR, the Philippines, Indonesia and Australia. There are 6 projects under construction and development with total equity contracted capacity of 1,498 MW. The Company’s power plants generate electricity using several fuel sources such as natural gas, coal, biomass, hydro, solar, wind, waste and geothermal.