KTIS power plants get set to launch

SET-listed Kaset Thai International Sugar Corporation Plc (KTIS) says its two biomass power plants, delayed since the second quarter, are expected to be launched in January.

Commercial operation of the plants, each with a power-generating capacity of 50 megawatts, is also expected to start in January, said Nathapun Siriviriyakul, chief executive overseeing bioenergy.

He blamed the contractors’ inexperience with cane-related machines for the delay.

With its existing 60-MW plant plus the two new plants coming on stream, the company’s generating capacity is due to rise to 160 MW next year.

KTIS, which is Thailand’s third-largest sugar producer, also operates an ethanol plant using biofuel from molasses, a sugar byproduct.

Given the uncertainty surrounding sugar prices, KTIS plans to adjust the proportion of its sugar and renewable energy business from 68:32 to 60:40 over the next three years.

It posted a net profit of 529 million baht in the third quarter, up 139% from 221 million in the same period last year.

Revenue in the third quarter was 5.76 billion baht, up by 609 million baht or around 11.8% from 5.15 billion last year.

For the first nine months of this year, the company had a net profit of 1.19 billion baht, down 14% from 1.39 billion in the same period last year.

The core sugar business contributed the biggest proportion of revenue at 5.3 billion baht, growing by about 16%.

Ethanol business generated revenue of 395 million baht, followed by paper pulp business at 324 million.

“This year’s revenue will drop compared with the previous year. However, we will try to increase our profit,” Mr Nathapun said.

With the drought expected to last longer than expected, Mr Nathapun said the company expected to have a smaller crop of sugar next year.

However, the decrease in production will help increase prices and the company’s revenues eventually.

“We expect to see good results in the next near,” Mr Nathapun said.

KTIS shares closed yesterday on the Stock Exchange of Thailand at 8.25 baht, down 40 satang, in trade worth 5.36 million baht.