RATCH : focuses Australia, Vietnam and the Philippines for pursuing greenfield and operating power plants’ acquisition to create sustainable growth

Nonthaburi - RATCH Group Public Company Limited has been striving for sustainable business growth this year by focusing mainly on investment in existing and new projects in Australia, Vietnam, and the Philippines. At the same time, non-power and future fuel businesses such as hydrogen fuel has been expanded. Currently, two projects are under negotiation expecting the conclusion this year. With this approach, the company will gain consistent and steady cash flow and income.

Ms. Choosri Kietkajornkul, Chief Executive Officer of RATCH Group, said that the company continue to drive its investment plan in power business in Australia, Vietnam, and the Philippines, in which ten power projects in total, both new projects have been conducted feasibility study and pipelined projects have been ongoing developed. Besides, the company also pays attention to manage the under-construction power plant projects with total 2,918.23-megawatt equity capacity to be completed and operated on schedule as specified in the power purchase contract, which will gradually generate revenue to the company from 2024 to 2033. In 2024, the company will realize additional commercial production capacity of 459 megawatts consisting of Hin Kong combined cycle power plant, Block 1 with 392.70-megawatt equity capacity, the REN power plant, the new Sahacogen power plant, and the phase-3 expansion project of Nava Nakorn Electricity power plant. Hin Kong power plant Block1 where the company has realized an equity capacity of 392.70 megawatts will commence commercial operation in March 2024. At present, the project's liquefied natural gas fuel has been secured after the Hin Kong Power Holding Company Limited signed a 3-year liquefied natural gas purchase contract with Gunvor Singapore Pte. Ltd., with a supply of 0.5 million tons annually. The first delivery will be made in March next year.

"Australia is considered as significant renewable energy business base driven by RATCH-Australia Corporation Pty Ltd, its subsidiary. The company sees investment potential and opportunity in renewable energy projetcs and development of new business related to power supply for supporting reliability and stability of the national electricity grid during the period of Australia's energy transition towards net emission zero goal in 2050. The company has studied and developed the projects enabled to respond the Australian clean energy strategy and grid security, which is regarded as a new high potential business. The company is negotiating for providing electricity supply to serve the national grid's reliability and stability by upgrading the existing natural gas-fired power plants. It expected to be concluded soon. Along with this, a 152-megawatt solar power project together with 81-megawatt energy storage systems is being developed in New South Wales, whereas 120-megawatt wind power project in Queensland and 100-megawatt energy storage system are under feasibility study. The energy storage system project will be developed to store electricity from renewable energy sources and distribute it through the transmission system. In Vietnam, it also has potential opportunity for investment according to the 8th National Power Development Plan requiring capacity increase to 150 gigawatts, of which renewable energy provisioned for 40 percent. Currently, the company through a joint venture grows its business by studying and developing solar and wind power projects, as well as acquiring operating power plants. In the Philippines, the company moved forward the development of projects in pipeline including the Negros solar power project expecting to begin construction in 2024, the offshore wind project in San Miguel Bay, and the offshore Luciana wind farm project on Luzon Island, which construction phase would start in 2025. The company is confident that the mentioned plan will help drive business growth and create stable returns for shareholders and stakeholders. Moreover, it will create benefits for society and the environment in the long term," Ms. Choosri said.

For future direction, the company still focuses on electricity generation as the core business for creating consistent growth by driving progress of the under-development projects in Vietnam, the Philippines, and Australia, extending new markets particularly in developed countries and balancing greenfield investment and merger and acquisitions in order to stabilize the company's cash flow and income. The company aims to increase around 700-megawatt capacity annually. In addition, the project under construction will be managed and controlled the budget and completion schedule as specified in the agreement, while production efficiency and costs will be kept monitoring in commercial operating power plants. Furthermore, efficiency of cash flow, cost and expense management will be paid more attention to achieve the EBITDA target of 12,000 million baht.