OPERATING RESULTS 2001

No. EGCO 340/ 069 February 25, 2001 Attn : The President of the Stock Exchange of Thailand Subject : Financial statements and report concerning financial results of operation for the year ended December 31,2001 We submit herewith the financial statements and the consolidated financial statements of Electricity Generating Public Company Limited and subsidiaries for the period ended December 31,2001 and 2000 , of which the operating results for the yearperiod 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 2,939 million baht for the year ended December 31,2001 is 1,722 million baht or 141% higher than the net profit of 1,217 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 236 million baht and 1,478 million baht, respectively, which show a decrease of 1,242 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 35 million baht, where as there was shares of loss of 77 million baht from the associates in 2000. 2) Total revenues were 11,612 million baht increased by 1,061 million baht or 10% mainly due to the followings; * Electricity revenues of 10,434 million baht rose by 854 million baht or 9% which were from Gulf Electric Co.,Ltd.(GULF) and Conal Holding s Corporation (CONAL) in the amount of 436 million baht and 662 million baht ,respectively. Revenues from GULF and CONAL were included for one year in which six month of GULF and four 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 88 million baht and 156 million baht ,respectively(5,842 M.kWh from REGCO and 5,979 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 92 million baht due to operated since February 2001. * Service income of 207 million baht increased by 91 million baht or 78% which were from EGCO Engineering and Service Co.,Ltd. of 68 million baht resulted from higher operating and maintenance revenues, and from CONAL of 23 million baht * Interest income and other revenues amounted to 880 million baht increased by 26 million baht or 3% mainly due to dividend income, Gains on disposal of investments, Gains on deemed on disposal of interest on dilution of investment in a subsidiary and others of 157 million baht. Whereas the interest income decreased 131 million baht due to Company has paid cash for new projects. 3) Total Expenses were 8,269 million baht increasing by 451 million baht or 6% mainly due to the followings: * Cost of sales of 3,916 million baht rose by 604 million baht or 18% mostly owing to the increase of major maintenance costs from a subsidiary, REGCO, in the amount of 220 million baht whereas KEGCO decreased 305 million baht. Furthermore, the share of cost of sales from two joint ventures, GULF and CONAL, were higher than previous year in the amount of 324 million baht and 318 million baht, respectively. Cost of sale of EGCOMP TARA was 47 million baht. * Cost of service was 117 million baht decreased 33 million baht or 22% * Administrative expenses and Directors' remuneration totaling 905 million baht decreased 116 million baht or 11% due to : * An decreasing in the company's admin expenses by 290 million baht due to the cost of project development of Nam Theun 2 Hydro project and Yala Project in the amount of 377 million baht and 9 million baht, respectively, which were recorded when they are incurred in previous year. However, other administrative expenses increased in the amount of 96 million baht. * 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 7 million baht and 22 million baht respectively. * Increasing in shares of administrative expenses from GULF and CONAL in the total amount of 15 million baht.(included amortization of Goodwill) * Shares of administrative expenses from other subsidiaries increased 131 million baht. * Interest expenses of 3,299 million baht decreased 26 million baht or 0.78% partly due to: - interest expenses of Company decreased by 99 million baht. - Interest expenses of two subsidiaries , REGCO and KEGCO ,decreased by 50 million baht and 50 million baht ,respectively - Increasing in shares of interest expenses from GULF and CONAL amounted to 34 million baht and 114 million baht, respectively. - Interest expenses of a subsidiary ,EGCOMP TARA , increased 25 million baht due to withdrew more principle in order to completing the project. * Income tax of 31 million baht increased 21 million baht or 210% was income tax of CONAL. Accordingly, the net profit for the year ended December 31, 2001 excluding foreign exchange loss of 236 million baht was 3,175 million baht , which was 480 million baht or 18% higher 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