Electricity Generating Public Company Limited or EGCO Group posted satisfactory performance in 2015 with over 7.9 billion Baht operating profit. For business direction this year, the Company keeps its focus in expanding overseas portfolio especially in the countries where it has strong presence, in pursuit of three business strategies to strengthen its long-term income generation. 2016 revenue growth is likely to be boosted by the commercial operations of “Khanom Unit 4” and “Chaiyaphum Wind Farm” power projects.

Mr. Chanin Chaonirattisai, President of EGCO Group disclosed, “EGCO Group’s 2015 operating results proved our continuous growth. The Company’s assets totaled 179,812 million baht, an increase of 19,125 million baht, compared to 2014. The operating profit before the effects of Foreign Exchange (FX), Deferred Tax, Lease Income and Income from Service Concession and impairment was 7,920 million baht, a rise of 215 million baht from the previous year, or 15.04 baht per share. For 2015 dividend payment, the Board of Directors will propose to the Shareholder’s 2016 Annual General Meeting to consider the final dividend payment from the second-half-year operation of 2015 at 3.25 Baht per share. Upon the approval of the shareholders, the full year dividend payment, therefore, will total to 6.25 Baht per share.”

Outstanding activities from the year of 2015 until now:  EGCO Group has expanded its investment in the existing assets and developed new projects within the existing plant sites. These included the additional shares acquisition in Natural Energy Development Co., Ltd. (NED) owning and operating Lopburi Solar and Wang Ploeng Solar power plants, which enables EGCO Group to become the major shareholder of NED; the additional shares purchase in Quezon Power (Philippines), Limited Co., (QPL), resulted in the Company’s 100% indirect ownership in QPL. Additionally, “San Buenaventura” power project in the Philippines got approval on Power Supply Agreement and is now under construction, while  “Masinloc Unit 3” power project entered into an omnibus expansion financing agreement and  commenced the construction. Moreover, the Company recognized the immediate earnings from the divestment of EGCOM Tara Co., Ltd.

2016: Broaden overseas investment with focus on countries where EGCO Group has Strong Presence

Mr. Chanin said that in 2016, EGCO Group will continue to focus its investment in power business, which is the area of the Company’s expertise and experiences. In gearing the Company’s performance, three key business strategies will be deployed: 1) ensuring maximum efficiency of existing power plants and managing projects under construction to be completed as scheduled and within the planned 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 to immediately recognize earnings.

“We will continue to focus 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 seek investment opportunities in other ASEAN countries, such as Myanmar and Vietnam with an aim to increase the Company’s profits portion from overseas investment from currently 37% to 50%. Meanwhile, we are very well prepared for domestic investment opportunities, especially renewable power projects”, said Mr. Chanin.

22 Billion baht investment budget allocated for 8 power projects in pipeline

This year EGCO Group has allocated more than 22,000 million baht investment budget for its 8 power projects in pipeline both in Thailand and overseas, of which 15,000 million baht is set for 5 power projects in Thailand while the other 7,000 million baht is prepared for the overseas projects. The Company’s domestic projects having total equity contracted capacity of 1,338 MW  include “Khanom Unit 4” in Nakhon Si Thammarat, “Chaiyaphum Wind Farm” in Chaiyaphum, and 3 Small Power Producer (SPP) projects and 3 overseas power projects under construction with total equity contracted capacity of 431.68 MW are “Xayaburi” in Lao PDR, “San Buenaventura” in the Philippine, currently  held its groundbreaking ceremony for construction commencement on December 10, 2015, and “Masinloc Unit 3” in the Philippines which also held the groundbreaking ceremony for construction commencement on March 3, 2016.

“Masinloc Unit 3”, a coal-fired power project in the Philippines having 335 MW installed capacity is located at the existing sites of Masinloc Unit 1 and 2 power plants in Zambales province. The project is co-invested by EGCO Group, AES Corporation and the International Finance Corporation (IFC), in the proportion of 40.95%, 51% and 8.05% respectively. The power plant is scheduled to start its commercial operation by mid-2019.

In addition, EGCO Group is studying the potential investment in other 5 power projects both domestic and in the region, such as Lao PDR, Myanmar, Indonesia and Vietnam with an aim to continuously boost the Company’s earnings. 

“We are moving forward to drive continuous growth for EGCO Group in pursuit of its strategic plan to maintain the return on equity (ROE) at least at 10%. We project the 2016 operating performance to be boosted by the stream of revenues from “Khanom Unit 4” power project which has been synchronized to the grid since January 2016 and will start its commercial operation in June 19, 2016 to replace the existing Khanom power plant. “Chaiyaphum Wind Farm” power project is also scheduled for the commercial operation in the last quarter of 2016,” concluded Mr. Chanin.

About EGCO Group

As of March 2016, EGCO Group runs 23 operating power plants with total equity contracted capacity of 3,808.94 MW in 5 countries across the Asia Pacific region – Thailand, Lao PDR, the Philippines, Indonesia and Australia. There are 8 projects under construction and development with total equity contracted capacity of 1,769.68 MW. The Company’s power plants generate electricity using several fuel sources such as natural gas, coal, biomass, waste, hydro, solar, wind, and geothermal.