EGCO Posts ฿2.7Bn Earnings in 2Q21, with Plan to Spearhead Smart Energy Solution Business

Electricity Generating Public Company Limited (EGCO) announced financial performance in the second quarter of 2021 with 2,758-million-baht operating profit. The company will embark on a new venture as LNG shipper. Another major milestone is the joint venture with EGAT Group, called “Innopower”, to spearhead Smart Energy Solution business.

Mr. Thepparat Theppitak, EGCO Group’s President, said, “The first six months of 2021 was full of business challenges from the new wave of COVID-19 pandemic. Coupled with the continually changing business environment driven by technology disruption. Despite the challenges, EGCO Group has been successful in new investment projects. The company has set its foot in the USA with an investment in the Linden Cogen facility in New Jersey in June 2021. We have expanded our investment in fuel business and received LNG Shipper License from the Energy Regulatory Commission (ERC) to source and supply 200,380 tonnes of LNG per year. In addition, EGCO Group can efficiently manage commercially operating power plants and projects under construction as planned.”

In the second quarter of 2021, EGCO Group recorded 2,758-million-baht operating profit (excluding the effects of foreign exchange rate, deferred income tax, impairment, financial instruments and lease income). This represented a 313 million baht increase or 13% compared to the second quarter of 2020. The strong performance is contributed by higher share of profit from Xayaburi hydropower plant and rising operating profits due to higher electricity sales of large-scale power plants in foreign countries, including Paju power plant and San Buenaventura power plant. In the first half of 2021, the company saw 4,846-million-baht operating profit, an increase of 44 million baht or 1% compared to the same period last year.

Meanwhile, EGCO Group showed net profit of 1,510-million-baht in the second quarter of 2021,      a decrease of 3,565-million-baht or 70% compared to the same period last year. As for the first half of 2021, it booked net profit of 2,095-million-baht, a decrease of 2,567-million-baht or 55% year on year. The major factors derived from the recognition of unrealized accounting effects due to remeasurement of financial instruments and conversion of long-term debt denominated in US dollar to Thai baht due to the baht depreciation.

Projects under construction: As of 30 June 2021, the company has three projects under construction. They included two power plants, comprising “Yunlin” offshore wind farm in Taiwan which is 69% completed, and the “Nam Theun 1” hydropower plant in Lao PDR which is 89% completed. Another project under construction is an energy-related business – the expansion of the oil pipeline to the northeastern region of Thailand, which is 85% completed. Meanwhile, The EGCO Rayong Industrial Estate project is in its design phase.

Investment plan in the second half of 2021: EGCO Group is developing the energy-related businesses including fuel and infrastructure business that adds value to its core business. This covers the extension of the oil pipeline in the northeastern region, the EGCO Rayong Industrial Estate and the LNG import under the shipper license granted by ERC. Smart Energy Solution is another energy-related business aiming to enhance the core business with innovation and future energy technology. A big step in this business includes an investment in Innopower Co., Ltd., a joint venture with EGAT Group that invests in electricity innovation and new S-Curve businesses. EGCO Group will focus on adding commercial values to the microgrid, energy storage system and electric vehicle technologies.

“EGCO Group continues to grow healthily despite the COVID-19 pandemic. We concentrate on power business, especially in renewable and clean energy. At the same time, we are expanding our energy-related businesses in order to create portfolio balance. This is to address the transition of the energy business. With these developments, we are confident that EGCO Group will be able to enjoy steady and sustainable growth in the long run,” concluded Mr. Thepparat.