EA Expects 20% Growth in 2021, Raising Revenue Distribution from EV Business to 20%

Mr. Amorn Sapthaweekul, Director of Energy Absolute Public Company Limited (EA), estimated a 20% growth for 2021 revenue, buoyed by the electric vehicle (EV) business after the first phase of its technology battery factory at 1 GWh is expected to be completed in 1Q21. The technology will greatly contribute to the company in the EV and electric ferry businesses.

 

EA currently has 400-500 units for electric vehicles related to public transportation on order. The company will start delivering the EV in 1Q21 in succession throughout the year.  As for the electric ferry, the company will deliver all 27 units in late March 2021 as scheduled after a 3-month test run.

 

Mr. Sapthaweekul stated that the revenue contribution from EA’s business will change in 2021. The distribution from the power plant business will drop from 60% to 50%. The biodiesel business will drop from 40-45% to 30-35%, while the remaining revenue contribution around 10-20% will come from EV business.

 

As for the company’s power business, EA is currently commercializing six projects with a total production capacity of 664MW. EA expected IRR at 8-10% with low risks, having small capacity power projects in Thailand, while pumping high capacity power projects overseas.

The company stated that it did not obstruct any opportunity for an M&A, but a feasibility study is required. Nevertheless, the company has the ability to procure investment funds in case of any M&A. EA currently has D/E nearly 2x with cash on hands around 4-5 billion baht.