EGCO Records over THB10 Billion Operating Profit in 9M22 with Main Focus on Clean Energy and Technology

Electricity Generating Public Company Limited or EGCO Group shows a strong performance of during the first 3 quarters of 2022 with operating profit worth 10,345 million baht due mainly to increasing revenues from large-scale power plants in Thailand and abroad. The company has continued expanding its power business in the United States through the 49% acquisition of a combined cycle gas-fired power plant Rhode Island State Energy Center (“RISEC”). In addition, the company – a subsidiary of EGAT (Electricity Generating Authority of Thailand) has also signed MOU (Memorandum of Understanding) with the Ministry of Investment of Saudi Arabia (MISA) for clean energy initiative.

Mr. Thepparat Theppitak, EGCO Group’s President, said, “The company has recorded a strong operation, and succeeded in expanding business locally and internationally. The expansion saw the success in commercial operation of the 650-MW “Nam Theun 1” Hydropower Project in Lao PDR, the purchase of remaining of 10% of “Chaiyaphum Wind Farm” and “Theppana Wind Farm” in Chaiyaphum province that makes the company the sole owner of the two wind farms, and the US investment through the 49% stake in the 609-MW natural gas power plant “RISEC”. The latest saw the MOU signing between EGAT Group of companies and MISA for clean energy initiative that would promote collaboration on energy transition, EV ecosystem, investment, operation and maintenance service, and other related operations to achieve the two countries’ goal of decarbonization.”

At the end first 3 quarters of 2022, EGCO Group has showed a strong operating performance worth 46,737 million baht with operating revenue growth at 61% compared to the same period last year. The company has enjoyed operating profit of 10,345 million baht with a significant growth of 2,290 million baht, or a 28% increase compared to the same period (Q1-Q3) of the previous year. Key factors contribute to the strong performance of the rising operating revenue from the “Paju ES” power plant and the “Khanom” and “Xayaburi” and “Kaeng Khoi 2” power plants generating higher electricity sale – in the meantime the “Nam Theun 1” hydropower project in Lao PDR has started operating commercially on 12 August 2022.

For the investment direction next year, Mr. Thepparat said, EGCO Group continues to seek for new investment opportunities based on our “Cleaner, Smarter and Stronger to Drive Sustainable Growth” concept. EGCO Group will focus on the expansion of the power business both conventional and renewable fuel usage, in the areas where we already have business presence, especially in the US. For the renewable energy business in foreign countries will be led by “Apex”. While investment in the country,     the company plans to participate in the bidding for government renewable energy projects, especially solar energy and battery energy storage systems.

In addition, it will develop new clean energy, for example, investing in a pilot project to produce electricity from fuel cells with a total capacity of 5 MW at “Klong Luang” power plant in Pathum Thani province. In the meantime, it will manage the existing power plants to maximize efficiency and minimize carbon emissions by developing technologies that help reduce carbon emissions and use in power plants, such as carbon capture and storage (CCS) technology and studies on the use of ammonia as        a fuel mixture to reduce carbon emissions, etc.

“The investment direction goes in line with the company’s goal to become a low carbon company in order to achieve carbon neutral in 2050. We also aim to reduce the carbon emission intensity per unit of electricity generated by 10% in 2030. By so doing, the company also drives growth for the organization along with creating sustainable added value for all stakeholders amidst the transition of the electricity and energy industry,” concluded Mr. Thepparat.