Electricity Generating Public Company Limited or EGCO Group (SET: EGCO) maintained its strong operating performance in 2022 despite the global energy price crisis. EGCO Group was able to recognize 65,344 million baht total revenues which was 55% higher than in 2021. The Company also posted 11,797 million baht operating profit, representing an increase of 15%. However, net profit was down to 2,683 million baht, 35% lower than in 2021. The Company’s Board of Directors will seek shareholders’ approval of 3.25 baht dividend payment for the second half of 2022, which will bring the total dividend for the entire year to 6.50 baht per share. This underscores the Company’s stable business foundation and the continuation of its long-standing dividend policy.
Mr. Thepparat Theppitak, EGCO Group’s President, said, “In 2022, the entire electricity and power industry faced a lot of challenges driven by rapid increases in global energy prices and inflation. Meanwhile, the industry started to reap the benefits from economic recovery. The fact that Thailand has opened up to the international markets again for business and tourism has also driven demand for electricity. EGCO Group’s operating performance in 2022 clearly reflects the Company’s strong positioning in the face of rapid and significant fuel price and inflation increases during last year while continuing to expand its clean energy asset base in the international markets.
Business highlights for 2022 included the achievement of commercial operation by the 650MW “Nam Theun 1” hydropower plant in Lao PDR, the acquisition of the final 10% shares in “Chaiyaphum Wind Farm” and “Theppana Wind Farm” in Chaiyaphum province, the acquisition of a 49% interest in the 609MW in “RISEC” power plant in the USA, and the sale of the Company’s ownership interests in “Star Energy” in Indonesia. In addition, EGCO Group has been working closely with local and international partners to study and develop clean energy and carbon emissions reduction technology for its existing fleet of power plants, particularly the future use of hydrogen and ammonia as a co-fueling alternative for carbon reduction, as well as technologies for carbon capture, utilization and storage (CCUS) in its power plants.
2022 operating performance: The Company produced a significant increase in total revenues to 65,344 million baht, representing a 55% increase on the prior year’s performance. Operating profit reached 11,797 million baht, an increase of 15% on the prior year. Other key contributors to the strong revenue and operating performance for the year were the increased incomes from the “Paju ES” power plant in South Korea, the “Xayaburi” hydroelectric power plant in Lao PDR, the “San Buenaventura” power plant in the Philippines, and the “Khanom” in Nakhon Si Thammarat, as well as other related businesses.
The Company’s net profit came at 2,683 million baht, representing 35% lower than in 2021. This significant reduction from the 2021 figure was the result of the recognition of impairment loss from renewable power plants in Thailand and a power plant in the Philippines. In addition, there were non-recurring items, namely the gain on disposal of investment in “Star Energy” power plant and the recognition of a share of loss from “Yunlin” offshore wind farm project.
Mr. Thepparat added, “EGCO Group and its partners have closely monitored the progress of the “Yunlin”, a 640MW huge offshore windfarm project which is currently under construction. The company has recognized the share of loss caused by unusual circumstances and out of control events. The impact from COVID-19 is inevitable as the Taiwanese government enforced strict entry restriction and closed borders twice during 2020-2022, which seriously affected travel and the transportation of large construction equipment. The construction area is located in the middle of the Taiwan Strait which is in the monsoon area. Therefore, on average there are only six months available for main installation campaigns to work in the sea each year. Consequently, the completion of the project has been extended to the end of 2024. Despite this extraordinary set of events, EGCO Group continues to preserve its high cash liquidity position and the strong operating cash flows from the balance of its well diversified portfolio which has enable the Company to maintain the dividend for the year.”
The Board of Directors’ meeting dated 28 February 2023 resolved to propose to the 2023 shareholders’ annual general meeting (AGM) scheduled for 12 April 2023 to pay dividends from the operating results of 2H/2022 at the rate of 3.25 baht per share. The record date is scheduled for 15 March 2023 and the payment will be made on 24 April 2023 after receiving approval from the AGM. When considering dividend payment for the entire year, EGCO Group has paid 6.50 baht per share.
Mr. Thepparat said, “With respect to our business plans for 2023, EGCO Group will extend our success and seek investment opportunity in local and overseas power businesses, including clean and renewable energy, conventional energy particularly natural gas fueled power plant opportunities which are necessary to support energy transition in their host markets, as well as other future alternative energy such as hydrogen. We will focus on development of technology that help reduce carbon emission. EGCO Group has submitted a number of proposals for participation in the Thai Government’s FiT scheme for renewable energy projects. So far 16 projects have successfully passed the preliminary screening process of the Thai authorities. Such projects are over 300MW solar farms and the battery energy storage system (BESS) projects. The Company has also commenced the construction of the 74MW “EGCO Cogeneration SPP Replacement” power project which is expected to start commercial operations in 2024.”