RATCH : announced THB1,448 million profits in Q1/2023, new operating plants’ revenues increased EBITDA growth

Nonthaburi - RATCH Group Public Company Limited reported that its operating performance in the first quarter of 2023 remains steady growth. Its earnings before interest, tax, depreciation, and amortization (EBITDA) recorded THB3,701 million, higher 23.6% than the same period of 2022, and profit before foreign exchange losses at THB1,625 million increasing 39.3%. The company posted a net profit of THB1,448 million.

In this quarter, the company initially realized around THB1,479 million revenues from five new invested power projects, namely 98 MW RATCH Energy Rayong power plant, a combined 212 MW Lincoln Gap 1&2 wind farms, and 154 MW gas-fired Snapper Point power plant in Australia, 17.37 MW Coc San and 17.10 MW Song Giang2 hydroelectric power plants in Vietnam, consequent to the company's financial stability.

Ms. Choosri Kietkajornkul, Chief Executive Officer of RATCH Group said that this quarter performance demonstrated continued growth thanks to revenues derived from new acquired power plants. The power business as a main source of income generated THB16,494 million or accounting 97% of its total revenues, of which THB14,603 million generated by conventional power plants (88.5%) and another THB1,891 million by renewable power plants (11.5%), whilst non-power businesses contributed THB511 million revenues representing 3% of its total revenues.

In first three months, the company has pushed forward its operation progress as planned. The 31.2 MW expansion phase of the RATCH Cogeneration power plant has already commenced generation of electricity and steam for industrial users. Princ Hospital Sakon Nakhon with 59-bed capacity, has also opened for service. Simultaneously, the share acquisition transaction of Indonesian-based 2,045 MW Paiton thermal power project is underway, and expects finalization by the second quarter, leading to immediately gain income in the third quarter of this year.

In addition, the eight under-construction projects with a total 518.66 MW equity capacity scheduled for commercial operation in 2024 has impressively progressed as planned. Hin Kong combined-cycle power plant project is under the process of fuel supply procurement expecting to complete in the third quarter of this year. The 36.33 MW Calabanga Solar farm regarded as a pioneering project of RATCH in the Philippines is securing project financing and will start construction in June.

"The company strives for achieving around 700 MW investment targets in the power business by focusing on conventional, natural gas in particular, and renewable power plants in Thailand, Vietnam, Indonesia, the Philippines, and Australia. The non-power business, the company will explore investment in solar energy business in Thailand, green hydrogen production in developed countries such as European countries, Australia, Japan, as well as extending healthcare business base. The asset management is also committed in order to create steady cash flow and stable income, while funding plan has been considered appropriate financial instruments and cost suited with each individual projects. This will help the company to reach target of its business expansion plan," said Ms. Choosri.

The company's operating result in the first quarter of 2023 posted THB17,005 million revenues, a THB15,310 million total cost and expenses, and THB1,448 million net profits. As of 31 March 2023, the company booked total assets of THB224,500 million, the total liabilities of THB118,035 million, and shareholders' equity of THB106,465 million. The company's financial position remains strong reflected by its debt-to-equity ratio of 1.11 times and a return on equity of 7.36%.