Indonesia deals power Egco profit

SET-listed Electricity Generating Plc (ECGO) posted a 14% rise in net profit in the first quarter of this year, thanks to the acquisition of geothermal power plants in Indonesia.

President and chief executive Chanin Chaonirattisai said total revenue in the first quarter was 7.1 billion baht, up 39% from the same period last year, when it had total revenue of 5.1 billion.

Net profit rose 14% year-on-year to 2.9 billion baht, he said.

Mr Chanin said Egco’s business has been progressing well since its acquisition of shares in Salak and Darajat geothermal power plants in West Java early this year.

The plants comprise several geothermal steam and electricity generating units with aggregate capacity of 402 megawatts from electricity and 235MW equivalent from steam. The plants have long-term energy sales contracts with PT PLN, the Indonesian state-owned electricity corporation.

Egco began investing in Indonesia in 2014 by acquiring a 20% indirect ownership interest in the Star Energy geothermal power plant, which has total installed capacity of 227MW.

Egco Group affiliates, Star Energy Group Holdings Pte Ltd and AC Energy Holdings Inc, acquired the shares from Chevron’s affiliates. Egco Group’s investment interest in the projects is 20.1%, with the acquisitions immediately generating revenue.

Egco has six power projects under construction at home and abroad: three small power plant (SPP) projects in Thailand, the Xayaburi hydropower project in Laos, and the San Buenaventura and Masinloc Unit 3 coal-fired power plants in the Philippines.

Mr Chanin said the Klongluang SPP power project in Thailand, with total equity contracted capacity of 102MW, is due to start commercial operations next month.

Egco has two other projects in Laos, the Pak Beng and Nam Thuen 1 hydropower projects, which are yet to break ground. The former is waiting for approval from the Mekong River Commission, and the latter is pending the attorney-general’s review of the Power Purchase Agreement (PPA).

Egco is also negotiating the tariff to help the expansion of the Star Energy geothermal power plant in Indonesia, and the electricity price and PPA for the Quang Tri coal-fired power project in Vietnam.

EGCO shares closed yesterday on the Stock Exchange of Thailand at 211 baht, up two baht in trade worth 23.3 million baht.