Ratchaburi Holding Records BHT6,740 Billion of Net Profit in 2009 Increasing 3.8%

- Allocates 4 billion Baht budget this year for project development and new investment

- Expects to increase 800 megawatts installed capacity this year

Ratchaburi Electricity Generating Holding Public Company Limited today announces the Company and its subsidiaries’ operating performance of 2009, which records net profit of 6,740 million Baht increasing 3.8% from 2008 or equivalent to 247 million Baht. It represents 4.65 Baht of earnings per share.

Mr. Noppol Milinthanggoon, the President of Ratchaburi Electricity Generating Holding PCL. (“Ratchaburi Holding”) discloses that the Company actively continues seeking for opportunities to build sustainable growth and strengthen its financial statement. According to the Company’s 2010 business strategy, Ratchaburi Holding will focus more on acquisition of operated power plants in aboard aiming to gain the prompt return on investment. In regards to domestic investment, the SPP and VSPP projects are our priority as well as renewable energy from agricultural waste biomass, solar cell and also wind energy in order to support the government renewable energy policy. It is expected that the Company would increase about 800 MWs deriving from projects having significant developing progress in this year and high potential income generating in the future. They include 751 MW-Hongsa Thermal Power Plant (accounted for 40% equity holding), 9 MW-renewable energy from agricultural waste biomass project, 110 MW-Nam Ngum 3 Hydroelectric Power Plant (accounted for 25% equity holding) and 18 MW-Wind Power Project (accounted for 30% equity holding).

For the overall operating performance of 2009, the Company remains net profit growth as projection, which net profit in 2009 records 6,739.60 million Baht increasing by 3.8% or 246.70 million Baht from last year. This resulted from the increase of shared profit of its joint ventures accounted at 1,720.71 million Baht, higher by 84.68% or equivalent to 789.01 million Baht compared to 2008, which mainly generated from Ratchaburi Power Company Limited where its two-combined cycle fully operated. Thanks to the success of interest rate reduction with financial institution lenders and the consistent principal repayment, the interest expense was substantially declined by 432.27 million Baht in 2009. Nevertheless, in 2009 the Company paid 830.94 million Baht income tax increasing by 613.59 million Baht from the previous year, resulting from the expiration of the BOI’s tax exempt of Thermal Power Plant Unit 1 and 2 of Ratchaburi Power Plant since October 2008.

In 2009, the Company realizes total revenue of 37,653.83 million Baht. Besides, the shared profit from the joint-ventures of 1,720.71 million Baht, Ratchaburi Holding earns 35,350.59 million Baht from sales revenue, 139.67 million Baht from management and service fee, 258.45 million Baht from interest income and 184.41 million Baht from other incomes. Whereas, the Company’s cost of sales and expenses was 29,222.19 million Baht, dividing into 28,530.84 million Baht cost of sales and 691.35 million Baht administration expense. However, it was exclusive the interest expense of 861.10 million Baht and the income tax of 830.94 million Baht, which the Company was committed to pay in 2009.

“In 2010, the Company allocates investment budget of 4 billion Baht for developing six joint-venture projects and other prospective projects. Currently, there are three developing projects, which have significant progress. Nam Ngum 2 Hydroelectric power plant would expect to start impounding in March 2010. Hongsa Thermal power plant is likely to sign the Power Purchase Agreement (PPA) with EGAT within the first quarter of this year. Regarding a 60 MW-Wind power project in Phetchabun, it is going to start its construction. Furthermore, Nam Ngum 3 Hydroelectric Power Plant is expected to sign the Tariff MOU with EGAT in the beginning of the year. Moreover, the Company expects to gear up new investments, which aims at least one of renewable energy project this year. In near future, Ratchaburi Holding tends to accomplish the joint venture agreement for a project of renewable energy from agricultural waste biomass with 9 MW.” Mr. Noppol added.
Company’s Information

Established in March 2000, Ratchaburi Electricity Generating Holding PCL is a leading independent power producer in Thailand with 4,347 MW total effective installed capacity. They derive from a 3,645-MW Ratchaburi’s Power Plant (99.99% stakeholding), a 350-MW Tri Energy’s Power Plant (50% stakeholding), a 350-MW Ratchaburi Power’s Power Plant (25% stake holding), and a 1.75-MW power generating from associated gas, Pratu Thao Power Plant in Sukhothai province, which the Company currently invests in the expansion of 0.875 MW-Pratu Thao Power Plant. Furthermore, There is 4 projects under development in Lao PDR with total capacity 1,108 MW according to equity holding, which consists of a 153.75-MW Nam Ngum 2 Hydroelectric Power Plant (25% stake), a 751-MW Hongsa Termal Power Plant (40% stake), a 110-MW Nam Ngum 3 Hydroelectric Power Plant (25% stake) and a 98-MW Xe-Pian Xe-Namnoy Hydroelectric Power Plant (25% stake). For renewable energy development, the Company invests in Wind Power Project in Phetchabun with capacity proportion of 18 MW (30% stake). The Company aims to achieve the total installed capacity of 5,479 MW from its investment and developing projects.

As of December 31, 2009, the Company’s total asset was 69,341.82 million Baht, consisting of the current asset of 19,196.40 million Baht and the non-current asset of 50,145.42 million Baht. The Company’s total liabilities were 24,817.68 million Baht, a decrease of 3,880.22 million Baht from 2008, and the total shareholders’ equity was 44,524.14 million Baht. The Company’s financial status is demonstrated by its ratio of debt to equity at 0.56 times and debt service coverage ratio at 2.55 times