RATCH Shares Fall 4% after Reporting a 24% Decline in First-Quarter Earnings

RATCH Group Public Company Limited (SET: RATCH) has announced its 1Q22 consolidated financial statement through the Stock Exchange of Thailand as follows;

Quarter 1Q22 1Q21
Net Profit (Loss)
Million Baht
1,579.36 2,087.86
Earning Per Share
1.09 1.44
% Change -24.4

RATCH reported a first-quarter net profit of THB 1,579.36 million, decreasing from THB 2,087.86 million in the same period of the previous year by THB 508.50 million or 24.4 percent. The main reasons were the one-time write-off deferred debt fees of its existing loans from debt refinancing in the amount of THB 225.73 million, and the recognition of the deferred tax expense of FRD in the amount of THB 337.70 million. Both items were the accounting transactions, which had no impact on cash flow of the company.

The total revenues were THB 18,249.67 million, increasing by THB 9,548.35 million or 109.7 percent from THB 8,701.32 million in the same period of the previous year since the Energy Payment of RG increased due to higher electricity generated using natural gas, oil, and diesel than that of the same period of the previous year, corresponding to higher dispatch instruction by EGAT. Also, revenue from sales of RAC increased as Collector Power Plant has commenced COD in June 2021. In addition, the revenues of SCG and FRD have been consolidated since the acquisition in the 4th quarter of 2021. However, the cost of sales and rendering of services was THB 15,494.42 million, increasing by THB 9,391.25 million from THB 6,103.17 million in the same period of the previous year due to the increase in electricity generated and the higher fuel price in response to global energy markets. Finance cost and income tax also increased.

As of 10.57 hrs. local time in Thailand, the share price of RATCH dropped THB1.75/share or 4.40 percent to THB38.00/share, with a trading value of THB211 million.