Electricity Generating Public Company Limited or EGCO Group recorded its 2016 outstanding performance with 9,175 million baht operating profits. For business direction this year, the Company continues to focus on pursuing overseas power business opportunities while the investment budget over 30,000 million baht has been allocated for funding of 7 projects in pipeline. EGCO Group also aims to increase its renewable portfolio to 30% by 2026.

2016 Outstanding Results with Over 9,000 Million Baht Profits
Power Projects Completed as planned
Successful Overseas Power Project Investment

Mr. Chanin Chaonirattisai, President of EGCO Group disclosed that “For operating year 2016, EGCO Group’s assets totaled 197,225 million baht, an increase of 17,443 million baht from 2015. The Company booked 9,157 million baht operating profits before the effects of Foreign Exchange, Deferred Tax, Lease Income and Income from Service Concession and Impairment, a rise of 1,237 million  baht or 16% when compared to the previous year. As for the net profits, the Company successfully posted 8,321 million baht, an increase of 93% from the previous year while the Company’s Board of directors will propose to the Shareholder’s 2017 Annual General Meeting to consider the final dividend payment from the second-half-year operation of 2016 at 3.25 baht per share. Upon the approval of the shareholders, the full year dividend payment, therefore, will total to 6.50 baht per share.”

EGCO Group’s significant events in 2016 included the completion of 2 power project construction which started their commercial operations as scheduled, being 930MW “Khanom Unit 4” power plant in Nakhon Si Thammarat and 80MW “Chaiyaphum Wind Farm” wind power plant in Chaiyaphum. The Company also succeeded in power business investment with 3 projects overseas. These comprised the acquisition of 8.05% additional indirect ownership interest in Masinloc Power Partners Co. Ltd. making EGCO Group’s share ownership to 49%, the recognition of higher earnings from of “Star Energy” geothermal power plant in Indonesia as its tariff has been increased on average by 40%, and the acquisition of 20.07% indirect ownership interest in “Salak” and “Darajat” geothermal power plants in Indonesia.

2017 Business Direction:
Further Investment in Overseas Power Business, Countries with  EGCO Group’s Foothold in Particular
Investment Budget over 30,000 Million Baht Allocated for 7 Power Projects in Pipeline

For 2017, EGCO Group aims to achieve its continuous sustainable growth so to maintain at least 10% return on equity (ROE) for its shareholders by deploying three key strategies which have been continuously and earnestly implemented: ensuring maximum efficiency of existing power plants, managing projects under construction to be completed as plan and budget, and seeking continuous investment opportunities. Project selection criteria have been set to ensure quality investment and EGCO Group places high priority in its overseas asset management to suit the business environment of the target countries including political and socio-economic policies and directions.

“We still focus on power business, which is our core expertise and we see great opportunities for business expansion, especially in overseas markets where the Company has strong presence. Philippines will be our flagship market, followed by Lao PDR and Indonesia. The Company will also seek investment opportunities in other countries such as Vietnam and Myanmar”, said Mr. Chanin.

EGCO Group has allocated more than 30,000 million baht investment budget for its 7 power projects in pipeline both in Thailand and overseas. These consist of 6 projects under construction that are scheduled to start commercial operations from 2017 until 2019 i.e. 3 SPP projects, “Xayaburi” in Lao PDR, “San Buenaventura” and “Masinloc Unit 3” in the Philippines. In addition, share transfer of “Salak” and “Darajat” geothermal power plants in Indonesia is on process and expected to be completed in the first quarter of 2017. Such budget does not include new projects EGCO Groups is pursuing both acquisition projects for immediate earnings and 4 overseas projects under development  i.e. 2 projects in Lao PDR; 912MW “Pak Beng” hydropower project which is waiting for the Mekong River Commission’s approval and 650MW “Nam Thuen 1” hydropower project which is pending for the Attorney General’s review of for the Power Purchase Agreement, one project in Indonesia; expansion of “Star Energy (Unit 3-4)” geothermal power plant which is on process of electricity price negotiation with PLN and one project in Vietnam; “Quang Tri” coal-fired power project which is presently under negotiation on electricity selling with the Vietnamese Government.

EGCO Group’s President added that “There are potential investment opportunities in domestic market as well as we see the renewable SPP/VSPP projects most attractive as private participation is well supported by the government. PPAs extension of EGCO Group’s cogeneration SPP projects with EGAT are also our opportunities.”

Aim to increase renewable portfolio to 30% by 2026

“As a corporate citizen, EGCO Group believes in the collaboration among all sectors in increasing clean energy to minimize negative environmental impacts and global warming pollution. The Company, therefore, targets to grow EGCO Group’s renewable portfolio to 30% by year 2026. EGCO Group presently runs 16 operating renewable power plants with total equity contracted capacity of 751 MW, accounted to 18% of the Company’s total equity contracted capacity”, concluded Mr. Chanin.

EGCO Group was recently ranked in SET’s Thailand Sustainability Investment (THSI) 2016 List for the second year. This award reflected the Company’s outstanding performance on Environmental, Social and Governance (ESG) aspects.

About EGCO Group
As of December 2016, EGCO Group runs 24 operating power plants with total equity contracted capacity of 4,122 MW in 5 countries across Asia Pacific region – Thailand, Lao PDR, the Philippines, Indonesia and Australia. There are 6 projects under construction with total equity contracted capacity of 869 MW and 1 project on process of share transfer with total equity contracted capacity of 128 MW. The Company’s power plants generate electricity using several fuel sources such as natural gas, coal, biomass, waste, hydro, solar, wind, and geothermal.