EN | TH
15 May 2002

OPERATING RESULTS Q1-2002

No. EGCO 340/ 163 May 14, 2002 Attn : The President of the Stock Exchange of Thailand Subject : Financial statements and report concerning financial results of operation for the quarter March 31,2002 Attachment: 1. Interim consolidated and company financial statements 2. Management Discussion and Analysis for the quarter operating results ended 31 March 2002 We submit herewith the financial statements and the consolidated financial statements of Electricity Generating Public Company Limited and subsidiaries for the quarter March 31,2002 and 2001 , of which the operating results for the year of 2002 has been changed exceeding 20% from the corresponding period in 2001. 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 B.E. 2544 item 6 , 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 1,249 million baht for the quarter March 31,2002 is 807 million baht or 182% higher than net profit of 443 million baht in 2001 due to the followings : 1) The impact of currency exchange in 2002 and 2001 resulted in the company's exchange gain of 157 million baht and loss 283 million baht, respectively, which show a increase of 440 million baht in 2002. 2) Total revenue were 3,228 million baht increased by 330 million baht or 11.41% mainly due to the followings; * Electricity revenue was 2,873 million baht increased 285 million baht or 11% came from - The Electricity revenue from KEGCO rose by 299 MB while the Electricity revenue from REGCO decreased by 82 MB. The Electricity revenue was as determined in the capacity payment formula calculated on a "Cost plus basis" under Power Purchase Agreement (PPA), and were in line with the company's projection - Joint ventures which including Gulf Electricity Public Co.,Ltd (GULF) ,Conal Holding Corporation (CONAL) amounted to 3 million baht and 9 million baht ,respectively and share of electricity revenue of Amata Power Bangpakong Co.,Ltd(APB) amounted to 57 million baht which is the first year in 2002. * Revenue from sell piped water of a subsidiary, Egcomp Tara Company Limited(EGCOMP TARA), was 30 million baht increased by 24 million baht due to previous year had operated only 2 month since February 2001. * Service income from EGCO Enginering and Service Co., Ltd. (ESCO) was 73 million baht ,increaseing by 51million baht or 232% from the previous year resulted from more operating and more maintenance for other company. * Interest income and other revenues amounted to 253 million baht decreased by 30 million baht or 11% mainly due to interested income decreased by 47 million baht and others income decreased by 17 million baht due to group had capital gain from sold 20% of investment in TLP COGEN in 2001 ,whereas dividened from marketable securities increased by 34 million baht. 3) Share of profit from joint venture companies amounted to 18 million baht increased 62 million baht due to share of loss from AMATA-EGCO amounted to 44 million baht which mainly due to the impact of currency exchange loss amounted to 33 million baht in 2001. 4) Total expenses were 2,076 million baht increased by 1 million baht or 0.07% mainly due to the followings; * Administrative expenses totaling 232 million baht decreased by 29 million baht or 11.25% mainly came from reducing of TLP COGEN's expenses by 41 million baht due to financing fee of long-term loan in 2001. Moreover, decreasing of subsidiaries and joint venture's expenses totally by 14 million baht. Whereas, expenses of company increased 26 million baht due to the loss on the forward contract of the foreign currency 38 million baht, however other expenses decreased 12 million baht. * Interest expenses was 726 million baht which decreased 142 million baht , partly due to decreasing of interest paid of company ,REGCO, KEGCO, GULF and CONAL amounted to 41 million baht , 52 million baht, 24 million baht, 12 million baht and 23 million baht, respectively. Whereas the interest expenses of EGCOMP TARA and APB increased by 6 million baht and 4 million baht, respectively. * Cost of sales of 1,076 million baht rose by 148 million baht or 15.88% mostly owing to the increase of major maintenance costs from two major subsidiaries, REGCO and KEGCO, in the amount of 99 million baht. Furthermore, the share of cost of sales from APB, a joint venture, and EGCOMP TARA were in the amount of 41 million baht and 8 million baht, respectively. * Cost of services of 42 million baht rose by 25 million baht or 153.17% due to the increased operating and more maintenance for other company. Accordingly, the net profit for the year 2002 excluding foreing exchange gain of 157 million baht was 1,092 million baht , which was 366 million baht or 50% higher than net profit excluding foreign exchange loss in2001 Yours sincerely, Mr. Machima Kunjara Na Ayudhya Senior Executive Vice President - Finance and Administration Acting for President Accounting & Budget Division Tel : 998-5160