Electricity Generating Public Company Limited or EGCO Group announced a strong performance for Q2/2023 with 15,593 million baht revenue and 2,652 million baht operating profit. Paju ES power plant in South Korea has contributed largely to the strong operation. The company also expressed confidence in projects under construction based on the satisfactory progress of Yunlin offshore wind farm project in Taiwan. To continue the momentum of sustainable growth, EGCO Group has introduced and applied the “4S” strategy.

Mr. Thepparat Theppitak, EGCO Group’s President, said that, in the first 6 months of 2023, EGCO Group continued to maintain high efficiency of all power plant portfolio and fuel cost management at all power plants, especially the big ones in Thailand and overseas, enabling the company to generate more income from sales of electricity. In addition, the company has ensured that projects under construction have continued as planned, enabling the company to recognize more income in the future. Some of these projects are under APEX in the USA, which has 5 projects with an accumulative installed capacity of 657 MW covering solar power, wind farm, and battery storage system under construction at the same time. EGCO Cogeneration SPP Replacement project is over 78% completed and Yunlin offshore wind farm in Taiwan construction has made good progress as planned. TPN project, its energy-related business, is ready to launch a commercial operation this month as well.

In Q2/2023, EGCO Group reported a total revenue of 15,593 million baht, a 2% increase year on year. Operating profit was 2,652 million baht, a 18% decrease compared to the same quarter last year, which is caused by the lower sales by the three hydro power plants in Laos PDR – Nam Theun 1, Nam Theun 2 and Xayaburi, because of lower water level and maintenance. At the same time, Khanom Power Plant earned lower availability payments (AP). However, Paju ES power plant in South Korea had higher electricity revenue. In addition, its net profit was 1,460 million baht, 288% higher than the same period last year.

Business progress: EGCO Group’s total contracted capacity increased by 115 MW. The increase was contributed by APEX’s 5 renewable energy projects under construction in the USA, including 2 solar power projects, 1 wind farm project, and 2 battery storage projects. Once completed, 2/3 of the projects will be run by APEX and the rest will be sold out. This is EGCO Group’s new hybrid business model.

Yunlin offshore wind farm in Taiwan has made good progress as planned. Twenty wind turbines have been completed and started to generate and transmit electricity to the grid since Q4/2022. Its total capacity is 144 MW. So far, the accumulated transmission capacity was 620 GWh. While the project is well progress compared to the previous year, it is on track in discussions with Taiwanese Bureau of Energy to postpone the completion schedule in the management contract to 2024. The investment structure negotiation has made significant advancement and is expected to be completed within this year.

“Amidst the increasingly challenging business environment, EGCO Group has continued to grow our electricity generation and energy businesses in a sustainable manner. We will focus on the “4S” strategy that will quickly generate more income and strengthen the company’s businesses. The “4S” strategy comprises 1. strengthening financial performance, 2. selecting high quality project with focus on merger and acquisition of highly efficient conventional and renewable power plants to immediately recognize income, 3. speeding up projects under construction to meet with the planned schedule, and 4. streamlining portfolio and improving operation of our existing 36 power plants and energy-related businesses in order to achieve maximum efficiency. The “4S” strategy directly addresses one of the company’s missions to maintain continuous growth to create sustainable value to our shareholders,” said Mr. Thepparat.
 
About EGCO Group
EGCO Group currently has a total contracted capacity of 6,317 MW (including both projects that already start commercial operations, and projects under construction). Total capacity from renewable energy is as high as 1,363 MW (22% of the total capacity), which includes biomass, hydropower, solar power, wind power, fuel cells and battery storage. These power plants and other projects are located in eight countries, namely Thailand, Laos PDR, the Philippines, Indonesia, Australia, South Korea, Taiwan and USA. In addition, its energy-related businesses include the Extension of Petroleum Pipeline System in Northeastern (TPN), “EGCO Rayong” Industrial Estate Development project, the license to source and supply natural gas in Thailand, financial technology company (Peer Power), innovation research and development company (Innopower). EGCO Group has been included in the Dow Jones Sustainability Index (DJSI) for three consecutive years and sets a goal to achieve Net Zero by 2050.