Mr. Jakgrich Pibulpairoj, President of EGCO Group disclosed that “EGCO Group’s 2017 performance satisfactorily exceeded its expected goals. The Company successfully posted THB11,818 million net profit, a rise of THB3,497 million or 42% when compared to the previous year. The Company’s Board of directors will propose to the Shareholder’s 2018 Annual General Meeting to consider the final dividend payment from the second-half-year operation of 2017 at 3.50 baht per share. Upon the approval of the shareholders, the full year dividend payment, therefore, will total to 7 baht per share.”

 

EGCO Group’s significant events in 2017 included the completion of power project construction which started their commercial operations as scheduled, power business expansion and an asset divestment. The details are as follows.
• Completion of 2 power project construction which started their commercial operations as scheduled, being “Klongluang” power plant in Pathumthani province and “Banpong” power plant in Ratchaburi province.

• Additional investment in 2 overseas power projects, comprising the share transfer completion of 20.07% stake in “Salak” and “Darajat” geothermal power plants in Indonesia, and the new investment with 25% stake in “Nam Theun 1” hydro power project in Lao PDR.
• Divestment of 49% indirect ownership interest in Masinloc Power Partners Co. Ltd. (MPPCL) to gain the proceeds of USD850 million (THB27.66 billion equivalent).

 

2018 Business Direction:
Further Investment in Overseas Power Business in Asia Pacific region
Target to Increase Renewable Portfolio to 30% by 2026

For 2018, EGCO Group is yet committed to sustainable growth and to generate steady and good return for the shareholders with an aim to maintain at least 10% return on shareholders’ equity (ROE) by deploying three key strategies which are as follows.

- Ensuring maximum efficiency of existing power plants and managing projects under construction to be completed as plan and budget
- Seeking opportunities to acquire operating assets and develop greenfield projects in both domestic and Asia Pacific region
- Expanding investment in renewable energy projects to achieve target of 30% by 2026 and exploring new business opportunity

 

“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 Asia Pacific countries, especially in renewable energy projects so to increase its renewable portfolio to 30% by 2026. EGCO Group presently runs 16 operating renewable power plants with total equity contracted capacity of 876 MW, accounted to 20.56% of the Company’s total equity contracted capacity”, said Mr. Jakgrich.

 

EGCO Group’s President added that “For domestic investment, EGCO Group is well prepared for arising opportunities from the government’s policy and the Thailand Power Development Plan (PDP) which would be revised, renewable SPP/VSPP projects in particular. The Company is also considering an opportunity of PPAs extension of its cogeneration SPP projects and has readiness for IPP expansion in the existing sites.”

 

For 2018, EGCO Group has allocated around THB12,000 million investment budget for its 3 overseas power projects in pipeline. These consist of “Xayaburi” and “Nam Theun 1” in Lao PDR and “San Buenaventura” in the Philippines which are scheduled to start commercial operations in 2019 and 2022. Such budget does not include new investment projects and 3 overseas projects under development such as “Pak Beng” hydropower project in Lao PDR, expansion of “Star Energy (Unit 3-4)” geothermal power project in Indonesia, and “Quang Tri” coal-fired power project in Vietnam.

 

“Besides its firm business foundation, competent personnel, financial strength and creditability, EGCO Group recognizes that business sustainability must be based upon knowledge and continuous development. Accordingly, the Company actively encourages both commercial and social innovations to strengthen its competitiveness and to benefit society and the environment alongside. This is to ensure that the Company will grow with stability, thus yielding steady annual return for the shareholders”, concluded Mr. Jakgrich.

 

As of 28 February 2018, EGCO Group runs 27 operating power plants with total equity contracted capacity of 4,260 MW in 5 countries across Asia Pacific region – Thailand, Lao PDR, Philippines, Indonesia and Australia. There are 3 projects under construction with total equity contracted capacity of 544 MW. The Company’s power plants generate electricity using several fuel sources such as natural gas, coal, biomass, waste, hydro, solar, wind, and geothermal.