Ratchaburi Holding Reports First-Quarter Net Profit of 1,933 Million Baht
Ratchaburi Electricity Generating Holding PCL. [SET symbol: RATCH] today announces its unreviewed consolidated operating performance of the Company and subsidiaries for the first quarter of 2006 ended March 31, 2006. The Company recorded net profit of 1,933.79 million baht or earning per share at 1.33 baht, decreasing by 215.35 million baht or 10% of the net profit of 2,149.14 million baht or earning per share at 1.48 baht from the same period of 2005.
The major reason that effects the Company’s first quarter net profit of 2006 is the availability payment rate of 2006 is lower than that of the year 2005 as specified in the Power Purchase Agreement (PPA) which resulted to the Availability Payment (AP) decreasing by 259.66 million baht or 7.75 percent compared to the same period of last year. In addition, the operating and maintenance expenses for this quarter had increased by 130.38 million baht that derived from the maintenance service fee, the maintenance and repair for machinery, and spare parts as Ratchaburi Electricity Generating Company Limited, the core subsidiary has entered into the Contractual Service Agreement (CSA) for its combined-cycle power plants with the General Electric International Operations Co., Inc and GE Energy Parts, Inc. on December 29, 2005. However, the CSA will bring benefits to the Company in the long run on account of three blocks of Ratchaburi combined-cycle power plant are guaranteed for maintenance, procurement and logistic. Consequently, the Ratchburi Power Plant will be efficient and geared up for the better availability payment, meanwhile, operating and maintenance expenses will not fluctuate due to the Company will pay quarterly installment for 22 years as specified in the CSA. Besides, the interest payment for the first quarter of 2006 has increased by 327.66 million baht or 14.35 percent when compared with the same period of 2205. This was from the interest rate of the market is rising. However, in this quarter the Company’s total revenue of 12,817.16 million baht is still growing, which consisted of electricity sales of 12,388.59 million baht, interest income of 109.41 million baht, other incomes of 128.23 million baht, and income from sharing profit of joint-venture companies of 190.93 million baht. Also, the interest income has increased by 97.67 percent from the first quarter of previous year (55.35 million baht). Ratchaburi Electricity Generating Holding PCL is a Thailand leading investment firm in power generation business with total installed capacity of 4,500 Megawatts. At present, the Company has invested in power plant projects namely; Ratchaburi Power Plant and Tri Energy Power Plant located in Ratchaburi Province and under construction projects namely; Ratchaburi Power Project located in Ratchaburi Province, Hydroelectric Power Plant of Nam Ngum 2 located in the Lao People’s Democratic Republic (Lao PDR). Learn more about Ratchaburi Holding, visit our web site at www.ratch.co.th
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