EGCO Shows Continuous Growth with 2021 Operating Profit Reaching THB10 Billion

Electricity Generating Public Company Limited (SET: EGCO) showed a strong operating performance in 2021 generating total revenue from operations worth 42,093 million baht, with operating profit of 10,218 million baht, up 17% comparing to 2020. The major supporting factors are from higher sales volume of electricity and investment in two new projects in the United States. The Board of Directors has given the green light to pay dividend of 3.25 baht/share for the second half of the year, reinforcing the policy to maintain the dividend payment rate for shareholders and pay dividend on a regular basis despite the ongoing Covid-19 situation and the challenging circumstance of energy transition.

Mr. Thepparat Theppitak, EGCO’s President, disclosed that “the Board of Directors Meeting on 28 February 2022 reiterated the policy to maintain the dividend payment rate for shareholders and pay dividend on a regular basis. The board resolved to propose to the 2022 shareholders’ annual general meeting to pay dividends from the operating results of 2H/2021 at the rate of 3.25 baht per share. The record date for the right to receive the dividends is scheduled on 14 March 2022 and the dividend payment is set to be made on 27 April 2022 after receiving approval from the 2022 shareholders’ annual general meeting which will be held on 19 April 2022. If the interim dividend payment at the rate of 3.25 baht per share for the 1H/2021 operating results is included, it would be the dividend payment from the operating results for the accounting period from 1 January – 31 December 2021, totaling 6.50 baht per share.”

In 2021, EGCO was able to maintain growth rate with operating profit (excluding the effects of foreign exchange rate, deferred income tax, asset impairment, measurement of financial instruments, and lease income) of 10,218 million baht, an increase of 1,480 million baht, or 17% compared to 2020. Meanwhile, a net profit of 4,104 million baht decreased 4,629 million baht, or down 53% compared to the previous year. It is mainly due to the impact of the conversion of foreign currency liabilities into Thai Baht as a result of Thai Baht depreciation, and the changes in the fair value of financial instruments. However, they are just the recognition of unrealized accounting effect, which does not affect cash flow and operations.

Amidst the new wave of the COVID-19 pandemic, the ongoing economic volatility from the impact of the COVID-19 situation since 2020, and the energy transition, EGCO could still maintain its continuous growth, with major supporting factors driven by higher sales of large-scale power plants in foreign countries such as Xayaburi Power Plant, San Buenaventura Power Plant, and Quezon Power Plant. The higher rates of electricity and steam per unit of Star Energy, Salak and Darajat Power Plants. The company also recognized operating profits resulting from the successful acquisition of two new projects in the United States including Linden Cogen Power Plant and Apex Clean Energy Holdings.

In 2021, EGCO had invested in various new businesses particularly in clean energy technology and further enhancement of business innovations. Significant achievements include two investment projects in the United States which include the acquisition of shares in “Linden Cogen” natural gas-fired power plant, as well as in Apex Clean Energy Holdings, a leader in clean energy project development, sales and commercial operations in the United States; investment in “Peer Power” startup to develop energy-trading platform using blockchain technology; as well as obtaining a license to be a “supplier and importer of LNG” to effectively manage fuel costs of EGCO’s power plants.

 In addition, the company never stops looking for new investment opportunities by developing “EGCO Rayong Industrial Estate Project” to support the investment of 4 targeted industries, S-Curve, and New S-Curve which have received investment support from the Eastern Economic Corridor (EEC) development project. Meanwhile, the company has also advanced business innovations by joining forces with the Electricity Generating Authority of Thailand (EGAT) and RATCH Group to establish “INNOPOWER Co., Ltd” with the aim to drive innovative researches towards commercialization. It has also signed a Memorandum of Understanding (MoU) on electricity generation from Solid Oxide Fuel Cell (SOFC) technology with EGAT, Bloom Energy, and ATE to develop the use of hydrogen for power generation which would reduce carbon dioxide emission and ensure smooth transition to hydrogen use in order to achieve the carbon neutral goal.

“In 2022, EGCO aims to build its success on the power business, especially the power generation from renewable energy and clean energy as to drive business towards low-carbon society. Meanwhile, it will accelerate investment expansion into energy-related businesses, both fuel and infrastructure business, as well as Smart Energy Solution business. Furthermore, EGCO also has a mission to be a good corporate citizen for the community and society who takes good care of the environment and creates stable and sustainable growth despite of the transition of the energy industry, along with adding business value for all stakeholders,” Mr. Thepparat concluded.