EGCO Group operates as a holding company that mainly focuses on investment in power business in Thailand and oversea. As of September 30, 2022, EGCO Group has total equity contracted capacity of 6,079 MWe, including other related power businesses e.g., Power Service Provision, Coal Mine and Oil Pipeline.
- 5- Year Investment Budget (2021 - 2025) 150,000 million baht
- Additional 1,000 MWe of power business in 2022
- 2022 Outlook - New revenue recognition from 2 projects COD NT1 power plant and Yunlin power plant, including full year recognition from Linden and APEX.
- Acquires 49% Interest in RISEC 609 MW Natural Gas Combined Cycle Power Facility in the USA
| 9M22 | 9M21 | 2021 | 2020 |
|---|
| Revenues | 44,200.77 | 26,099.04 | 38,136.94 | 37,782.97 |
| Expenses | 37,719.47 | 20,508.59 | 31,213.12 | 29,479.19 |
| Net Profit (Loss) | 2,946.45 | 3,169.66 | 4,103.84 | 8,733.03 |
| Assets | 273,054.45 | 234,600.38 | 241,932.00 | 214,437.69 |
| Liabilities | 142,490.59 | 121,163.15 | 127,895.31 | 111,603.45 |
| Shareholders' Equity | 130,223.78 | 112,840.85 | 113,440.87 | 102,243.20 |
| Operating | 5,315.89 | 7,637.17 | 10,453.28 | 11,712.96 |
| Investing | 531.35 | -5,325.55 | -14,191.10 | -9,316.50 |
| Financing | -3,733.12 | -3,806.56 | 3,440.06 | -5,429.65 |
| EPS (Baht) | 5.60 | 6.02 | 7.80 | 16.59 |
| GP Margin (%) | 15.75 | 24.56 | 23.24 | 24.78 |
| NP Margin (%) | 6.60 | 12.18 | 10.80 | 23.18 |
| D/E Ratio (x) | 1.09 | 1.07 | 1.12 | 1.09 |
| ROE (%) | 3.19 | 4.63 | 3.81 | 8.45 |
| ROA (%) | 6.42 | 5.67 | 5.71 | 6.62 |
9M/2022, EGCO Group has an operating profit of 10,345 million baht, an increase of 28% YoY mainly due to Paju ES in South Korea has higher electricity sales and effective fuel cost management. KN4 and XPCL were higher electricity sales causing an increase in revenue recognition. Moreover, MME was higher export of coal and coal unit price , including NT1PC
commenced commercial operation to EGAT. 9M/2022 Net profit was 2,946 million baht, decreased by 7% YoY mainly due to recognition of a higher unrealized loss on foreign exchange which is non - cash item.
Notification of Commercial Operation Date of Nam Theun 1 Hydropower Project under Power Purchase Agreement with Electricity Generating Authority of Thailand - On August 12, 2022, Nam Theun 1 Hydropower Project commenced its Commercial Operation to supply electricity to EGAT.
Acquisition of Additional Shares in Chaiyaphum Wind Farm Company Limited and Theppana Wind Farm Company Limited - On September 22, 2022, EGCO has successfully acquired additional 10% of the common shares in Chaiyaphum Wind Farm Company Limited and Theppana Wind Farm Company Limited from the existing minority shareholders.
Investment in Cogentrix RISEC Holdings, LLC - On November 11, 2022, EGCO RISEC II, LLC, a wholly owned subsidiary of EGCO in the USA , entered into a purchase and sale agreement to acquire a 49% ownership interest in Cogentrix RISEC Holdings, LLC.
- Strengthen Core Business in Power Generation with a portfolio balance of fuel sources both in conventional and renewables and focus in domestic market & existing foothold.
- Ensure maximum efficiency of existing power plants to achieve its highest performance.
- Manage projects under construction to be completed as scheduled and within the planned budget
- Seek opportunities to expand into energy-related businesses :
- Fuel and Other Infrastructure: EGCO started investing in fuel infrastructure, an upstream business to extend value-added in core business.
- Smart Energy Solution: To promote comprehensive power production business as well as invest in energy efficiency and renewable energy services, including related companies to microgrid and energy management systems.
5. EGCO drives the business through corporate strategies based on Balanced Scorecard concept in 4 strategic perspectives:
- Financial Perspective
- Customer Perspective
- Internal Business Process Perspective
- Learning and Growth Perspective
- The medium-term goal is to reduce carbon emission intensity by 10% and increase the renewable portfolio to 30% by 2030.
- The long-term goal is to achieve corporate carbon neutral by 2050
Investment Expansion Risk Investment in new projects has environmental factors, a risk that affects the project. Thus, potential projects are listed in annual investment plan and a sensitivity analysis shall be conducted also.
Construction Project Management Risk EGCO has set measures to lower the risks e.g. contractors selection with binding contracts.
Operating Risks EGCO Group has monitored the performance by analysis and comparison the actual and planned performance. Targets maintenance is carried out continuously.
Financial Risks and Corporate Tax Legislation Risk EGCO mitigates the fluctuation of currencies by matching loan and revenue. Also, has interest rate exposure mitigation and thoroughly plan its tax compliance strategies.
COVID-19 Impact Risk Short-term effect, such as fewer dispatch orders and postpone maintenance plans. However, EGCO is able to operate its business continuously and efficiently.
Government Policy, Legislative Change and Compliance Risk Due to Climate Change EGCO aims to decrease coal portfolio to 20-21% and increase renewable and smart energy portfolio to 30% and set medium and long term target to reduce 10% carbon intensity by 2030 and achieve carbon neutral by 2050.
- EGCO were rated AA+ with a negative outlook by TRIS Rating
- CAC Renewal Certificate for the second consecutive year
- Thailand Sustainability Investment (THSI) 2022
- Member of the DJSI for two consecutive years
| as of 30/09/22 | EGCO | ENERG | SET |
|---|---|---|---|
| P/E (X) | 16.25 | 11.19 | 17.52 |
| P/BV (X) | 0.70 | 1.41 | 1.59 |
| Dividend yield (%) | 3.94 | 3.24 | 2.67 |
| 30/09/22 | 30/12/21 | 30/12/20 | |
|---|---|---|---|
| Market Cap (MB) | 86,866.73 | 92,394.61 | 101,344.51 |
| Price (B/Share) | 165.00 | 175.50 | 192.50 |
| P/E (X) | 16.25 | 18.58 | 10.70 |
| P/BV (X) | 0.70 | 0.82 | 1.00 |
