Thailand’s power producer Ratch Group aims to close 5 deals in 2020

Construction News

Thailand’s power producer Ratch Group aims to close 5 deals in 2020

SET-listed private power producer Ratch Group Plc plans to form new joint ventures and acquire more assets, expecting to close at least five deals in 2020.

Chief executive Kijja Sripatthangkura said all the deals are related to power generation and Ratch is in negotiation with partners, so further details have yet to be finalised.

“Ratch plans to allocate a budget of roughly 20 billion baht for five deals to achieve new power generation of 780 megawatts this year,” he said.

As a result of the planned deals, Ratch expects total power generation to reach 8,715MW by 2020.

Ratch earlier announced it would expand into infrastructure and pursue potential domestic investment opportunities in power security and infrastructure development.

The company set an infrastructure investment goal of 20% of the total investment budget starting in 2023.

Ratch has joined forces with BTS Group Holdings Plc and Sino-Thai Engineering and Construction Plc (STEC) to develop infrastructure projects for the Yellow and Pink electric train lines, which are under construction and will begin operation in 2021 at a total investment cost of 50 billion baht each.

Ratch, BTS and STEC formed a consortium with Gulf Energy Development Plc that was selected as the winning bidder for operation and maintenance of two motorways: the 196-kilometre Bang Pa-in-Saraburi-Nakhon Ratchasima road (33.3 billion baht) and the 96km Bang Yai-Kanchanaburi (27.8 billion) highway, with a concession for 30 years.

In related news, Ratch reported 2019 total revenue rose 6% to 15.7 billion baht and net profit for the period rose 6.7% to 5.96 billion.

The increase was attributed to commencement of commercial operations for Mount Emerald Wind Farm Project and Collinsville Solar Power Project in Australia in December 2018 and March 2019, respectively, and the acquisition of Ratch Cogeneration Co last October.

Ratch recorded profit from Fareast Renewable Development Pte, acquired in December 2018, and Berkprai Cogeneration Co, commencing commercial operation last June.