Mr. Theparat Theppitak, President of Electricity Generating Public Company Limited (EGCO) or EGCO Group, revealed that the company has set a target for new power generation capacity in 2022, increasing by more than 1,000 megawatts.
Because there are still many projects that are being studied and negotiated. This is a high potential project, while considering the investment in new power plants, the Company will focus more on foreign countries than domestic. Especially in countries that have already invested, such as the United States, due to their high potential for developing renewable energy. make the US market is also an important goal including other markets in which EGCO has already invested. By placing an investment budget at 30 billion baht of the total investment budget for 5 years at 150 billion baht (year 2021-2025)
“Currently, EGCO has investments in 8 countries, including Thailand. Our investment expansion will focus on countries where we have already invested. and operate with key partners that seek investment opportunities in that country It also focuses on natural gas or conventional power plants and renewable energy.”
Mr. Theparat said
However, even the company will continue to invest in natural gas power plants But there is a plan to increase the proportion of investment in renewable energy or Renewable more to reduce the proportion of Carbon Emission per unit of electricity produced (Carbon Emission Intensity) in line with the goal of driving business to society. low carbon In line with the global energy direction and the national energy plan, the company has set a goal to achieve Carbon Neutrality by 2050 and a target to reduce carbon emissions per unit of electricity produced (Carbon Emission Intensity) by 10% within the year. 2030
As for the fuel share in 2050, it is expected that renewable energy will increase. It also believes that electricity generation from Conventional is still necessary. according to the demand for electricity from fossil energy because it has better stability However, technology must be used to store carbon dioxide. Also known as Carbon Capture, Utilization and Storage (CCUS), the technology will play a greater role. To help the operation of power plants and not emit carbon dioxide.
On the progress of the first round of natural gas (LNG) imports after being granted the right to be an LNG importer or LNG Shipper License, the company now While watching the rhythm in terms of time and a reasonable price for the opportunity to import Due to the current price of LNG in the market is quite high. making it unable to be imported into this period Including the proportion of LNG imports of the Company, which is approximately 2 hundred thousand tons / year, is not a large quantity. therefore need a partner or cooperate with other Shipper Licenses to seek additional demand and provide LNG at the best price. By one of them, of course, the company It will join the Electricity Generating Authority of Thailand (EGAT) who is one of the licensees for the supply and wholesale of natural gas.
“We talk to all Shipper Licenses about how much demand each person has. Matching the demand, if it corresponds to what the supplier has slots for, will get the best price. which will be the principle in considering the import We also have to take into account the cost that will affect the electricity bill as little as possible.”
Mr. Theparat said
while the impact of the delay of the Erawan source If the delay is too late, it will increase the cost of LNG imports. The increase in Ft in 65 is expected to benefit the company’s revenue. increase with
Mr. Theparat said that the operating outlook in 4Q21 is expected to go according to plan. or slightly better than the plan It is expected that the situation of the Covid-19 epidemic will improve, which will benefit demand. Including, there should be a profit from the exchange rate (Fx gain) if the baht in 4Q21 appreciates from the 3Q21 at 34.09 baht / USD. Record impairment of renewable energy plants in the country, which may have the implementation of non-cash accounting figures. But the amount will be less than last year. Recorded in this quarter As for the shutdown for power plant maintenance, it will follow the normal plan.
During the first nine months of 2021 to the present, EGCO Group has successfully opened up new investment areas in the United States. by investing in the power plant “Linden Cogen” which uses natural gas as fuel It’s the first project This was followed by an investment in “Apex”, a large-scale renewable energy project development company in the United States. This is an important step for EGCO Group to participate in the development of many new large-scale renewable energy projects in the future. For business development in the country, EGCO Group, together with EGAT Group, established “Inno Power Company Limited”, which will be the EGAT Group’s flagship electrical innovation company to invest and develop new technologies. electric power as well as supporting and promoting startups in the energy industry meanwhile This company will also help strengthen the business base of EGCO Group’s Smart Energy Solution business to grow even further. Expected to start business in 2022
“EGCO Group continues to focus on expanding its power business. especially investment in renewable and clean energy meanwhile has accelerated the expansion of investment into related energy businesses as well as moving forward to drive business towards a low-carbon society to be in line with the global energy direction and the national energy plan By setting a goal to achieve Carbon Neutrality by 2050 and a target to reduce carbon emissions per unit of electricity produced (Carbon Emission Intensity) by 10% by 2030.”
Mr. Theparat said
The company has set its business direction for sustainable growth “Cleaner, Smarter and Stronger to Drive Sustainable Growth”. Cleaner invests in environmentally friendly businesses and optimizes work processes to reduce carbon emissions while At Smarter, build stability in the power system and invest in high-growth businesses such as New S-Curve to keep pace with disruptive technologies and Stronger, generate maximum returns for shareholders by finding business partners. for strong and sustainable growth with all stakeholders
Mr. Theparat said that for the third quarter of 2021, EGCO Group had a profit from operations. (Excluding the effect of exchange rate deferred income tax Asset impairment Measuring the value of financial instruments and recognition of lease income) 3,209 million baht, an increase of 370 million baht or 13% compared to the third quarter of 2020, mainly supported by an increase in operating profit. This was due to an increase in electricity sales volumes from large power plants overseas, namely San Buenaventura, Nam Theun 2 and Xayaburi power plants. due to coal exports and coal sales prices
However, the operating profit of the Paju power plant declined. due to increased fuel costs As for the operating results for the first nine months of 2021, the company reported operating profit of 8,055 million baht, an increase of 414 million baht or 5% compared to the same period last year.
When considering the net profit in 3Q21, the company had a net profit of 1,074 million baht, a decrease of 1,193 million baht or 53% compared to the same period last year. while net profit for the first nine months of 2021 was 3,170 million baht, a decrease of 3,759 million baht or 54% compared to the same period last year. This was mainly due to the recognition of unrealized accounting impacts. This was due to the conversion of long-term debts in US Dollars to Thai Baht due to the depreciation of the Thai Baht. and valuation of financial instruments
Projects under construction At present, the Company has 3 projects under construction, comprising 2 power plant projects, namely the “Yunlin” offshore wind power plant in Taiwan, 71% construction completed. Currently, 2 wind turbines of 16 MW have started to supply electricity. Entered the system on November 5 and November 11, 2021, respectively, which is expected to be able to recognize revenue by 2021, while the Nam Theun 1 Hydroelectric Power Plant in Lao PDR is constructing Completed 94%
There is also an energy business project. Related projects include the “Expansion of the Oil Pipeline Transportation System to the Northeastern Region” project, 89% of the construction was completed, while the project “EGCO Rayong Industrial Estate” is in the process of designing the project.
By InfoQuest News Agency (23 Nov 64)
Tags: EGCO, electricity generation, Thai stocks, Theparat Theppitak