OPERATING RESULTS

No. EGCO 320/ 488 November 12, 2001 Attn : The President of the Stock Exchange of Thailand Subject : Financial statements and report concerning financial results of operation for the nine-month periods ended September 30,2001 We submit herewith the financial statements and the consolidated financial statements of Electricity Generating Public Company Limited and subsidiaries for the period ended September 30,2001 and 2000 , of which the operating results for the nine-month period of 2001 has been changed exceeding 20% from the corresponding period in 2000. In order to comply with the Regulation of the Stock Exchange of Thailand Re: Rules , Conditions , and Procedure Governing Preparation and Filing of Financial Statements and Reports Concerning Financial Status and Results of Business Operations of Listed Companies (No.1) B.E. 2541 item 4(7), under which any listed company has to explain the reason why the operating results has been changed exceeding 20% from the same period of previous year, we would like to clarify that the company's net profit of 2,307 million baht for the nine-month ended September 30,2001 is 760 million baht or 49% higher than the net profit of 1,547 million baht in 2000 due to the followings : 1) The impact of currency exchange in 2001 and 2000 resulted in the company's exchange loss of 262 million baht and 1,095 million baht, respectively, which show a decrease of 833 million baht in 2001. Moreover, the impact of currency exchange was the main factor resulting in shares of profit from the company's associates, Amata-Egco Power Co.,Ltd., in the amount of 6 million baht, where as there was shares of loss of 87 million baht from the associates in 2000. 2) Total revenues were 8,831 million baht increased by 986 million baht or 13% mainly due to the followings; * Electricity revenues of 7,954 million baht rose by 804 million baht or 11.28% which were from Gulf Electric Co.,Ltd.(GULF) and Conal Holding s Corporation (CONAL) in the amount of 420 million baht and 660 million baht ,respectively. Revenues from GULF and CONAL were included for nine month in this year in which three month of GULF and one month of CONAL were included in previous year. Whereas the revenues from Rayong Electricity Generating Co.,Ltd. (REGCO) and Khanom Electricity Generating Co.,Ltd. (KEGCO)decreased in the amount of 18 million baht and 258 million baht , respectively(4,677 M.kWh from REGCO and 4,566 M.kWh from KEGCO) which reflected from lower major maintenance cost as determined in the Power Purchase Agreement (PPA). * Revenue from sell piped water of a subsidiary ,Egcomp Tara Company Limited(EGCOMP TARA), was 61 million baht due to operated since February 2001. * Service income from EGCO Engineering and Service Co.,Ltd. was 106 million baht, increasing by 28 million baht or 36.90% from the previous year resulted from higher operating and maintenance revenues. * Interest income and other revenues amounted to 711 million baht increased by 90 million baht or 14.49% mainly due to dividend from other company of 25 million baht and others of 104 million baht. Whereas the interest income decreased 39 million baht due to Company has paid cash for new projects. 3) Total Expenses were 6,108 million baht increasing by 983 million baht or 19.18% mainly due to the followings: * Cost of sales of 2,862 million baht rose by 636 million baht or 28.57% mostly owing to the increase of major maintenance costs from a subsidiary, REGCO, in the amount of 192 million baht whereas KEGCO decreased 114 million baht. Furthermore, the share of cost of sales for nine month from two joint ventures, GULF and CONAL, were higher than previous year in the amount of 310 million baht and 216 million baht, respectively. Cost of sale of EGCOMP TARA was 32 million baht. * Cost of service was 61 million baht increased 6 million baht or 10.51% * Administrative expenses totaling 590 million baht was up 162 million baht or 37.80% due to : - Shares of administrative expenses from GULF and CONAL in the amount of 30 million baht and 57 million baht and amortization of Goodwill in the amount of 10 million baht and 21 million baht, respectively. - Acquisition of two subsidiaries, Thai LNG Power Corporation Limited(TLPC) and TLP Cogeneration Co.,Ltd.(TLP COGEN), of which shares of administrative expenses were in the amount of 9 million baht and 11 million baht respectively. - Shares of administrative expenses from other subsidiaries increased 14 million baht - An increasing in the company's admin expenses mostly owning to consulting fee, advertising cost and others in the amount of 8 million baht, 19 million baht and 14 million baht, respectively. * Interest expenses of 2,563 million baht, which was up 150 million baht partly due to: - Shares of interest expenses from GULF and CONAL amounted to 47 million baht and 140 million baht, respectively. - Interest expenses of a subsidiary ,EGCOMP TARA , increased 18 million baht. - Interest expenses of two subsidiaries , REGCO and KEGCO ,decreased by 10 million baht and 25 million baht ,respectively and the interest expenses of Company decreased by 20 million baht Accordingly, the net profit for the nine-month ended September 30, 2001 excluding foreign exchange loss of 262 million baht was 2,569 million baht , which was 73 million baht or 2.75% lower than net profit excluding foreign exchange loss in the same period of 2000. Yours sincerely, Mr. Machima Kunjara Na Ayudhya Senior Executive Vice President - Finance and Administration Acting for President Accounting & Budget Division Tel : 998-5160