Reporters reported that today (December 28, 2022) Electricity Generating Public Company Limited or EGCO as of 10:00 am was 170.50 baht, plus 0.50 baht or 0.29%, the highest price 170.50 baht, the lowest price 170.50 baht with trade value. 2.32 million baht
Mr. Thepparat Theppitak, President of Electricity Generating Public Company Limited or EGCO, disclosed that Phoenix Power BV (PP), a subsidiary of EGCO, has signed a share purchase agreement with Star.Energy Group Holdings Co., Ltd. for sell shares of Star Energy Geothermal Co., Ltd. (SEG), 20% of the common shares paid. and sold shares of Star Phoenix Geothermal JV BV (SPG) in the proportion of 30.25% of the ordinary shares paid up on November 16, 2022.
The transaction was completed on December 22, with EGCO realizing $485 million in proceeds from the sale of shares. That is approximately 16,780 million baht, representing a profit of approximately 2,500-3,000 million baht, which will be recognized immediately in Q4 2022, resulting in a better overall performance in Q4 2022 compared to Q3 2022 with a net loss of 393 million baht
The sale of all shares in these three geothermal power plants is part of EGCO’s asset management and investment strategy. support investment in new projects in the future Especially renewable energy and clean energy projects that have greater growth potential.
For investment, EGCO started investing in Indonesia in 2014 by indirectly holding 20% and 20.07% of the fully paid ordinary shares of “SEG Wayang Windu” (SEGWW) and “SEG Salak-Darajat BV” (SEGSD), through SEG and SPG, in which SEGWW owns and operates Wayang Windu Geothermal Power Plant, with a total installed capacity of 227 MW, located in West Java Province Indonesia
SEGSD owns and operates the “Salak” and “Darajat” geothermal power plants located in West Java. The “Salak” power plant has a total installed capacity of 376.8 megawatts (180 megawatts of steam and 196.8 megawatts of electricity), while the “Darajat” power plant has a total installed capacity of 271 megawatts (55 MW of steam and 216 MW of electricity) The three plants sell electricity under long-term purchase guarantee agreements with the Indonesian Electricity Authority (PLN).
However, after the sale of the aforementioned power plant, the company will expand investments in renewable energy and clean energy projects. Whether it’s a venture or an acquisition (M&A), there are a lot of projects under negotiation lately. And there are major projects that should be clarified within the next year. The goal is to add at least 1,000 megawatts of new generation capacity to the portfolio out of the current total holding capacity of 6,202 megawatts.
Previously, EGCO RISEC II, LLC (EGCO RISEC II, LLC), a wholly owned subsidiary of EGCO in the United States. entered into a share purchase agreement with Cogentrix RISEC CPOCP Holdings, LLC and Cogentrix RISEC CPP to Hole.Dings LLC (Cogentrix RISEC CPP II Holdings, LLC) on November 11, 2022 to acquire a 49% stake in “RISEC”. the transaction is expected to be completed by Q1/2023 after satisfying the conditions for closing the transaction.
The Risex Power Plant sells electricity on the New England Electricity Market (ISO-NE) and is one of the most efficient natural gas-fired power plants in the ISO-NE system. distributed power generation and provision of Blackstart energy system security services with ISO-NE. At the same time, this power plant has also entered into a contract for the sale of all generated power and other energy system security services with the company. Shell Energy North America, an electricity buyer with A/A2 investment credibility level under the Energy Tolling Agreement Good performance for “Risek” to have a stable and consistent income.
Capital analyst Nomura Securities Public Company Limited said EGCO would return to net profit in the fourth quarter of 2022, maintaining a “buy” recommendation with a 2023 price target of 260 baht per share.
