News Update

EGCO Group Posts Over Bt13bn Net Profit for 2019 New Vision Drawn to Support Changes in Energy Industry

6 March 2020

Electricity Generating Public Company Limited or EGCO Group saw its 2019 net profit soaring to Bt13,059 million and expected to pay Bt3.25 dividend per share. Together with strong performance, the Company revealed the new vision: “To be a major sustainable Thai energy company with full commitment to environment protection and social development support”, which frames its future business direction focusing on strengthening its leadership in the power generating business and expanding its wings in energy-related businesses for sustainable growth.

 

2019: Achieving targets for growth and performance

 

Dr. Gumpanart Bumroonggit, Senior Executive Vice President – Strategy & Asset Management and Acting President of EGCO Group, said, “EGCO Group performed well and successfully achieved our 2019 targets. We have seen Bt13,059 million net profit, a decrease of Bt8,014 million compared to the previous year. However, if gains on disposal of investment of Bt14,177 million was not included, the Company’s normal operating profit was Bt10,368 million, an increase of Bt1,173 million compared to the previous year. Considering such performance, the Company’s Board of directors will propose to the Shareholder’s 2020 Annual General Meeting to consider the dividend payment from the second-half-year operation of 2019 at 3.25 baht per share. Upon the approval of the shareholders, the full year dividend payment, therefore, will total to 6.50 baht per share.”

 

EGCO Group’s significant events in 2019 included the completion of power project construction which started their commercial operations as scheduled, power generating business and energy-related business expansion. Highlights are as follows:

  • Completion of 2 power project construction which started their commercial operations as scheduled: The two projects are the “San Buenaventura” coal-fired power plant in the Philippines which started its commercial operations on 26 September 2019 and the “Xayaburi” hydropower plant in Lao PDR which started commercial operations on 29 October 2019.
  • Investment in 2 power generating projects: The Company invested in the 19.80MW “Gangdong” fuel cell power project in South Korea through Paju Energy Service Co., Ltd. in which EGCO holds 49% stake. The Company also successfully signed Share Purchase Agreement for 25% investment in 640 MW Yunlin offshore wind farm project in Taiwan.
  • Investment in energy-related business: The Company acquired 44.60% stake in Thai Pipeline Network Co., Ltd., operating the Oil Pipeline Extension to Northeastern Region project.

 

EGCO Group currently has three projects under construction. The fuel-cell “Gangdong” power project in South Korea is currently 82.45% completed and is scheduled for commercial operation commencement in the 4th quarter of 2020. The “Nam Theun 1” hydropower project in Lao PDR is currently 66% completed and scheduled for commercial operation in the 2nd quarter of 2022. In addition, other energy-related business under construction is the Oil Pipeline Extension to Northeastern Region project which is 22.15% completed and will start commercial operation in the 4th quarter of 2021.

 

2020: New vision to enhance power generating business, expand into energy-related businesses

 

Dr. Gumpanart added, “EGCO Group also adjusted our vision as “To be a major sustainable Thai energy company with full commitment to environment protection and social development support”. This is to better reflect the currently changing market situation and address the Company’s business expansion focusing on power generating and energy services. Electricity generation will remain our core business. Meanwhile, we will continue to seek new opportunity to invest in energy-related businesses in order to increase value and boost overall business progress, as well as exploring opportunity to invest in other regions, not only in Thailand and the Asia Pacific.”

 

In 2020, the Company has set clear business direction. Dr. Gumpanart added, “EGCO Group will strengthen the power generating business, which is our area of expertise, in both fossil fuel and renewable power plants. We will focus on overseas investment, especially in the countries we already have our footprint, such as the Philippines and South Korea. We will also enter into new markets, like Taiwan. At the same time, we will explore investment opportunity in related businesses, such as Smart Energy Solution. While moving forward, we are paying attention to optimizing efficiency of power plants which are already operating commercially and to managing projects under construction to ensure they progress well as plan and under budget. This year, the Company allocated Bt30,000 million investment budget for projects under construction and investment in new projects.”

 

“In addition to our strong business and financial status, EGCO Group will continue to strengthen our human resource, adopting new IT and innovations to improve our operational efficiency, and enhancing international-standard sustainability and good governance practice. We see these as a strategic move to enhance corporate competitiveness and ability to make larger contribution to the society and the environment, which eventually leads to sustainable growth and ability to generate greater returns for our shareholders,” said Dr. Gumpanart.

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