EGCO Group announces nine-month operating results of 2008 with a net profit of Baht 6,268 million amidst a strong balance sheet

EGCO Group’s nine-month operating results of 2008 show a net profit of Baht 6,268 million while the balance sheet reflects its strong financial position with cash and cash equivalents of Baht 5,260 million and a debt to equity ratio of 0.22 times. This clearly demonstrates the financial capacity to maintain consistent dividend payment.

Mr.Vinit Tangnoi, President of EGCO Group, said that “The current situation in domestic energy businesses, especially in power generating, is very challenging. 
The Ministry of Energy and Electricity Generating Authority of Thailand (EGAT) are reviewing the preliminary power development plan (PDP) to reflect the recent economic slowdown that has led to lower projection of electricity demand and the postponement of the purchase of electricity from planned power projects in Lao PDR. The country’s unresolved political issues as well as the global financial turmoil are causing the energy businesses to adjust their strategies to be prepared for any major development in the future and to be more cautious in conducting business.” 

”As for the investment direction of EGCO Group, we will place more emphasis on expanding investment opportunities in the ASEAN markets. In addition, the company continues to conduct feasibility studies on renewable energy projects that use wind, waste and biomass as commercial fuel sources; currently, we are at the stage of analyzing collected data to come up with the best choice for our investment.   EGCO Group will only consider quality projects that provide strong returns at an acceptable level of risk.”

Regarding the progress of projects under EGCO Group, Mr.Vinit explained that “The Nam Theun 2 project in Lao PDR is currently 90.5% complete. EGCO Group holds a 25 percent ownership in this 1,070 MW hydroelectric power plant project which has a schedule COD in December 2009 with EGAT contracted to purchase 995 MW while the balance will be sold to Lao PDR.”

Mr.Vinit also added that “EGCO Group’s consolidated net profit for the first nine months of 2008 ended September 30, 2008 was Baht 6,268 million, representing a decrease of Baht 1,100 million or 15% compared to the same period of 2007 which showed a net profit of Baht 7,369 million. The net profit per share was Baht 11.91. This was caused mainly by a decrease in total revenues from lower electricity sales and the share of profit from joint ventures which were mainly caused by a lower gain from foreign exchange rate.”

“EGCO Group’s total assets were Baht 55,047 million, representing an increase of Baht 1,446 million or 3% compared to the end of 2007. Meanwhile, EGCO Group’s total liabilities were Baht 9,813 million, representing a decrease of Baht 1,792 million or 15% compared to the end of 2007.  Cash and cash equivalents recorded a level of Baht 5,260 million which was Baht 1,510 million higher than that seen at the end of 2007. The company’s liquidity ratio was 7.14 times while its debt to equity ratio was 0.22 times.  This demonstrates the solid financial position of EGCO Group as well as its strong financial capacity to maintain consistent dividend payment,” Mr.Vinit said finally.

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