Eastern Water Resources Development and Management,
Sales volume is likely to fall short of its target of 250 million cubic metres this year as heavy rains have prompted clients to cut orders and switch to their own resources, said president and chief executive Praphant Asava-aree.
“As 74 [of 76] suspended projects in Map Ta Phut were allowed to resume and are in the process of completing health impact assessments, this will boost water demand,” he said.
The projects include Siam Cement’s olefins plant, petrochemical joint ventures of US-based Dow Chemical and PTT Asahi Chemical and the 660-megawatt Gheco-One power project.
“In addition, the new tap water plants in Pattaya and Laem Chabang of the Provincial Waterworks Authority (PWA) will be operational in 2011 and consume 10 million cubic metres of raw water from East Water,” he said.
Currently sales are projected at 287 million cubic metres in 2011 with estimated growth of 8% a year until 2014, he added.
Majority-owned by the PWA, East Water supplies raw water at a price of 9.10 baht per cubic metre and next year’s price will be relatively the same. Consequently, revenue should grow by the same percentage of volume growth, said Namsak Wannavisute, vice-president for finance and accounting.
Revenue increased 3.8% year-on-year in the third quarter to 754 million baht but profit fell by 14% to 194 million as the cost of sales surged. Nine-month revenue from normal operations grew 9% from a year earlier to 2.33 billion baht as earnings rose 14.8% to 733 million.
Total 2010 turnover is targeted at 2.65 billion baht for raw water and another 630 million baht for tap water, Mr Namsak added.
The company expects to invest about 3 billion baht this year and next, of which 2.1 billion is for laying the 34-kilometre third Map Ta Phut pipeline. Its current distribution pipeline covers 324 kilometres in Chachoengsao, Chon Buri and Rayong.
Shares of East Water (EASTW) closed yesterday on the SET at 6.75 baht, down five satang, in trade worth 1.08 billion.