Mr. Chanin Chaonirattisai, President of Electricity Generating Public Company Limited or EGCO Group disclosed that its first half of 2016’s operating profit before the effects of FX, Deferred Tax, Lease Income and Income from Service Concession and impairment was 4,299 million baht, an increase of 400 million baht or 10% from the same period of the previous year. EGCO Group’s Board of Directors also approved the interim dividend payment for the first half of 2016 of Baht 3.25 per share.

For the first six months, EGCO Group’s business has been progressed well, especially projects under construction to be completed as scheduled and additional investment in commercially operating assets. The highlighted project “Khanom Unit 4” has been successfully completed and started its commercial operation and supply electricity to the grid as scheduled on June 19, 2016 and would thereby generate revenues from the third quarter. The new power plant would help enhance the south’s power system reliability and Thailand as a whole.   Moreover, EGCO Group has completed its acquisition of 8.05% additional indirect ownership interest in Masinloc Power Partners Co. Ltd. Making its shares to 49%. EGCO Group has also recognized more earnings from new tariff adjustment of “Star Energy” geothermal power plant in Indonesia which has increased on average by 40%.

For the second half of 2016, EGCO Group would continually concentrate on sustainable growth to maintain at least 10% return on equity (ROE)  for its shareholders in pursuit of its strategic plan: 1) ensuring maximum efficiency of existing power plants and managing projects under construction to be completed as plan and budget, 2) pursuing Greenfield project investments and developing new projects within the existing plant sites for long-term income generation, and 3) acquiring commercially operating assets for immediate earnings.

“We still give priority to power business, which is our core expertise and foresee much opportunity for business expansion. We, however, will focus on overseas markets where the Company has strong presence, especiallythe Philippines which isour flagship market as well as Indonesia and Lao PDR. Presently, EGCO Group has 2 operating power plants and 3 power projects under construction with total equity contracted capacity of 1,100 MW in the Philippines. For other countries such as Australia and ASEAN countries i.e. Vietnam and Myanmar, the Company will carefully seek investment opportunities together with our strategic partners”, said Mr. Chanin.

Apart from 7 power projects under construction, both domestic and overseas, which have their commercial operation schedules from late this year until 2019, EGCO Group is studying the potential overseas investment in other 5 power projects including 2 projects in Lao PDR,  912 MW “Pak Beng” and 650 MW “Nam Theun 1” hydro power projects; “Star Energy Expansion (Unit 3 and 4)” geothermal power project with 60 MW of each unit in Indonesia ;  1,220 MW “Quang Tri” coal-fired power project in Vietnam and a power project in Dawei Industrial Estate, Myanmar.
 
EGCO Group’s President added that “For power investment in Thailand, we will seek for investment opportunities in renewable VSPP projects which is strongly encouraged by the government  as well as cogeneration SPP projects which have rights to extend PPAs with EGAT.”

About EGCO Group
As of August 2016, EGCO Group runs 23 operating power plants with total equity contracted capacity of 4,049 MW in 5 countries across the 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 941 MW. The Company’s power plants generate electricity using several fuel sources such as natural gas, coal, biomass, waste, hydro, solar, wind, and geothermal.