UWC to Dispose 3 Biomass Plants to ACE, Expecting a Rebound in FY21 Profit

Mr. Theerachai Leenabanchong, Vice Chairman of Ua Withya Public Company Limited (UWC), revealed that the Extraordinary General Meeting of Shareholders held on August 20, 2020 had the resolution of approval the disposition of the company’s equity interest in its subsidiaries engaging in biomass power plants with the total installed capacity of 26.9 MW which comprised of 1) UWC Komen Biomass Co., Ltd. (UKB) with an installed capacity of 9.9 MW in Nakhon Ratchasima Province 2) UWC Amphan Biomass Co., Ltd. (UAB) with an installed capacity of 9.5 MW in Buriram Province and 3) Satuk Biomass Co., Ltd. (SBM) with an installed capacity of 7.5 MW in Buriram Province, accounting for 851 million baht to Absolute Clean Energy Public Company Limited (ACE). The transaction is expected to complete within 1 – 2 weeks.

The disposition of equity interest in 3 biomass power plants is for debt repayment in the amount of 300 million baht, which could minimize an interest expense approximately 10 million baht, as well as reduce a debt to equity ratio from 3.38x to 1.74x. 

As of now, UWC holds a backlog of 200 – 300 million baht and expects to recognize full-revenue this year. For the first half of 2020, UWC has booked a revenue of 475.95 million baht.

Mr. Theerachai further stated that after the disposition of power plant business and company’s restructure, UWC expects a rebound in 2021.