Chawalit Tanomtin, CEO of Right Tunnelling Public Company Limited (SET: RT), a specialist in tunnel construction, civil engineering, and integrated geotechnical services, shared his business outlook for 2Q25.
He noted that business prospects are improving, supported by opportunities arising from natural disasters such as earthquakes and floods, which create demand for design, maintenance, and repair of tunnels, dams, and slope protection.
RT is preparing to participate in several key public and private sector tenders, including water transmission tunnels, drainage tunnels, road tunnels, and medium- to large-scale infrastructure projects.
RT is also adjusting its financial strategies to boost cash flow and liquidity, closely managing costs to address volatility in construction material prices and supply chain risks posed by the current economic slowdown.
The company prioritizes direct contracts with government agencies, either as the primary contractor or in joint ventures, to secure new projects and ensure prompt payment.
RT continues to improve internal efficiency, rigorously tracking project progress through modern Key Performance Indicators (KPIs), managing costs within budget, optimizing performance across all departments, and ensuring timely delivery of all projects.
The company has started integrating AI into quality control and project management, enhancing accuracy and operational effectiveness.
As of March 31, 2025, RT’s backlog stood at THB 5.1 billion. The portfolio consists of:
- Tunnel and underground construction (52% or THB 2,637 million)
- Hydropower plant construction (21% or THB 1,096 million)
- Dam and irrigation system construction (9% or THB 451 million)
- Microtunneling and pipe jacking (7% or THB 350 million)
- Other works (11% or THB 566 million)
The company’s goal is to raise its backlog to no less than THB 6-7 billion within the year.
Currently, RT have several key ongoing projects as follow:
- Double-track Railway Den Chai–Chiang Rai–Chiang Khong: Contract 1 (Den Chai–Ngao) 30% complete, Contract 2 (Ngao–Chiang Rai) 55% complete
- Khlong Taweewattana Drainage Tunnel: 56% complete at the bottleneck area
- Maha Sawat Canal Water Tunnel: 68% complete
- Luang Prabang Hydropower Plant: 45% complete
- Sri Song Rak Sluice Gate, Loei: 95% complete
- Khlong Aeng Reservoir, Trat: 35% complete
- Khlong Phlo Reservoir, Rayong: 82% complete
Additional projects are progressing and will contribute revenue recognition through 2028.
In 1Q25, RT reported total revenue of THB 700 million, a decrease of THB 277 million from THB 977 million in the same period a year prior. The company posted a net loss of THB 102 million, reversing from a net profit of THB 44 million in the earlier-year quarter.
The decline is attributed to external factors that impacted project execution, driving up costs significantly—an expense spike considered one-off for the quarter. RT has already implemented systematic internal management adjustments to mitigate impacts in future quarters and remains confident of improved full-year results, supported by progress in core projects and effective cost controls.
