SET-listed Ratch Group Plc, a major power operator, plans to conclude two more deals on power generation asset acquisition within this year in a move to expand its capacity to 10 gigawatts over the next five years.
While power business remains a major source of revenue for Ratch, the company wants to decrease its proportion from 80% of total revenue to 60%, and increase earnings from infrastructure business to 40% from 20%.
Kijja Sripatthangkura, chief executive of Ratch, yesterday did not name the firms from it would purchase the new assets, saying only that they will be fossil-fired and renewable power plants, which are in operation and under construction.
Their total capacity will be more than 100 megawatts.
Ratch has prepared capital spending worth 15 billion baht for asset acquisition this year.
At present, Ratch runs power plants, with a combined capacity of 7,053MW.
The company plans to first achieve a 8,300MW target within a few years.
"Though we have almost reached this target, our gas-fired power plants with capacity of 1,400MW will expire in a few years, too, so we have to find substitutes for the capacity loss," said Mr Kijja.
More asset purchases will be made domestically and across the Asia Pacific.
Over the last five years, Ratch expanded its capacity through merger and acquisition deals.
Its two power plants are scheduled to start operation in October this year.
They are a combined cycle gas turbine plant project of 296MW in Riau, Indonesia and a Ecowin Wind Farm of 29.7MW in Vietnam. The new plants will strengthen the firm's revenue in 2021.
The company yesterday reported a 73% rise in net profit to 4.21 billion baht due to more profits from its joint venture businesses and cost reduction.
During the first half of this year, Ratch spent 5.44 billion baht for both power and non-power businesses.
They include investment in Principal Capital, a private hospital and hospital management business operator.
Over the past 5-6 years, the company also diversified into infrastructure development projects including two motorway projects and two monorail projects.
