Fitch Ratings has today said that the 2010 credit outlook for the Asia-Pacific Power and Utilities sector is broadly stable, although some countries and companies face negative credit trends.
"Asia-Pacific utilities' credit quality remained broadly stable during the economic slowdown caused by the global financial crisis," notes Steve Durose, head of Fitch's Asia-Pacific Energy & Utilities team. "However, the increase in fuel costs may place some pressure on margins, and a return to robust electricity demand growth may accelerate the industry's capex requirements," adds Mr. Durose.
In its special report entitled "Asia-Pacific Power and Utilities Credit Outlook 2010", Fitch provides a credit overview for the sector in each country in the region where it has ratings.
Broadly speaking, utilities' margins improved in 2009 as the global financial crisis caused primary fuel costs to fall significantly from 2008's record levels. If fuel costs rise above their current level for a sustained period and governments or price regulators do not allow customers to bear the full cost impact, companies are likely to face margin compression, as happened in 2008.
The slowdown in economic growth in the last two years provided some developing countries with some respite from the desperate need to increase electricity generation capacity and infrastructure. However, as economic growth starts to improve, capacity shortages will become more acute and investment programmes may have to be accelerated. Even countries which are not facing serious electricity shortages generally have significant capital expenditure programmes to improve security of supply, replace aging infrastructure, or to invest in greener generation to meet carbon policy objectives.
However, even taking tariff and capex risks into account, almost all Asia-Pacific Power and Utility companies rated by Fitch have Stable Outlooks, as the agency has already incorporated these risks into its ratings. In addition, many of the companies have very close links to governments which provides significant liquidity benefits. However, if margins decline or debt-funded capex increase beyond Fitch's current expectations, then the agency may take negative rating actions.
The report also shows which Asia-Pacific Energy and Utility companies have high, medium or low headroom in their ratings.
Sunday, February 7, 2010
Saturday, January 30, 2010
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
- 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
Sunday, January 24, 2010
EEI all out in 2010 with energy management business, hoping to raise over 80 million baht
in revenue after joining forces with Burns and Roe Asia, leading engineering firm from the United States to bolster service capabilities
Mr. Arthit Vechakij Managing Director of Excellent Energy International Company Limited (EEI) disclosed that in the last 11 years, his company had proved to be a leading Energy Service Company (ESCO) in Thailand with recognition including ESCO Excellence Award 2009 from the Federation of Thai Industries (FTI) supported by Department of Alternative Energy Development and Efficiency (DEDE),Ministry of Energy. “Our clients also commended with several recognitions for their efficiency. These companies include Thai Yamaha Motor Co., Ltd., Grand China Princess Hotel, Dusit Princess Hotel in Korat and Royal Princess Hotel Chiang Mai as they are selected to be successful business operators using the ESCO system in 2009 (ESCO Project Award 2009). This is the 2nd year in a row for EEI to have its clients nominated for the award and receive privileges as well as support from the government sector. There are still several other projects that have made our company proud such as services provided to Thai Beverage, 4 new cogeneration power plants development for CPF, Energy Management System (EMS) for Pataya Food Industry, manufacturer of Nautilus canned tuna, whose confidence has resulted in repeat order. In addition, EEI is the consultant for Department of Industrial Promotion, making industrial and business operators having greater confidence in the company. Our latest move to strengthen our position is the cooperation with Burns and Roe Asia, leading integrated engineering company from the United States. The firm, which has already been accepted for expertise by several companies operating in Thailand, is considered a fresh development in Energy Service Company (ESCO) business in Thailand,” he said.
Mr. Arthit Vechakij said: “The cooperation between EEI and Burns and Roe Asia was a result of new opportunity seeking on the part EEI. Discussions were made with Burns and Roe Asia to allow the 2 companies to see good potential together in facilitating to the growing demands from larger size customers. Our services will help make Thai business operators confident and continue relying on ESCO in the future.”
“EEI believe in 2010 it can generate revenue of 80 million baht, which is higher than before by 15%. We predict to help the country save by as much as 200 million baht, as a result of new projects from CPF Group worth 450 million baht, which include 4 new cogeneration power plants that can save up to 117 million baht a year. Projects made in cooperation with Burns and Roe Asia, which is similar to what we have provided to Thai Oil will also help save around 80 million baht a year. Our clients who are business operators believe that investment in energy conservation measures will help them save energy and cost. The rising oil prices of over US$80 per barrel will compel business operators to seek to reduce energy expense in order to maintain costs and create competitive advantages especially in the long run. We are seeing good improvement this year as the government continues to support business operators to seek proper energy management,” he added.
Meanwhile, Mr. Ruamlarp Anantasanta, Deputy Managing Director – Marketing & Business
Development of Excellent Energy International Company Limited (EEI) added on the business direction of EEI in 2010, saying the company would focus its business on what it does best, which would be the Cogeneration Power Plants and Energy Management System (EMS), including the Development and Energy Efficiency Management services “For the past 11 years, Cogeneration Power Plants have been the proud projects of EEI, where success can be proven and accepted widely, from thesuccess of Thailand ESCO Pilot Project with BKP to 4 more Cogeneration Power Plants for CPF Group. We also plan to establish a Energy Management System (EMS) which is the real time monitoring system of power consumption behaviors and coordination among concerned personnel in each area to allow business operators to utilize energy with maximum efficiency to reduce energy costs.
“In the current economic situation, the low investment cost of 5-20 million baht and payback period of only 1-2 years have been our value proposition . This is why our clients trust in our Energy Management System (EMS). EEI is able to develop software suitable to each individual operation following its strong experience and skills in energy management business in Thailand to deliver to each business’s specific needs perfectly. Our service also complies to the recent Energy saving act 2007 with integrated line of services could not be found in other operators. EEI’s unique services include application for necessary approval as required by the laws and regulations, seeking funding support from commercial banks, finding funding sources that provide privileges (special interest rate) in case of energy saving scheme and seeking privileges from the government sector such as financial support, DSM bidding and BOI,” said Mr. Ruamlap.
Mr. Mark Hunt, Managing Director of Burns and Roe Asia, Ltd. stated that his company’s recent cooperation with EEI, a leading Energy Service Company (ESCO) and well trusted by leading Thai operators, is an advantageous and strategic partnership that will benefit both companies’ quality of service. “Burns and Roe Asia’s presence and capabilities will be enhanced by the new opportunities brought forth by EEI. Our joint success will be achieved through a combination of world class services and skills in energy project management in Thailand, while maintaining a beneficial cost structure. We expect to execute at least 1 to 2 energy projects this year with an investment cost of 200-500 million Thai Baht, which will generate savings for Thailand by as much as 100-200 million Thai Baht a year,” he said.
“Thailand’s economy is recovering and moving in a positive direction, and that has a direct impact on domestic energy consumption. According to the Ministry of Energy, at the end of 2009, the amount of energy consumption recorded was higher than that recorded at the same time in 2008. This increase in energy consumption provides evidence that Thailand’s demand for energy is steadily moving in an upwards direction. In addition, the government policy which encourages the use of domestic energy sources and alternative energy, and promotes energy savings initiatives have contributed positively to the country’s energy industry by attracting new investments and expanding existing businesses,” he added.
“Our latest cooperation with EEI will help facilitate the growing energy needs in Thailand and advance the Thai government policy regarding domestic energy management and energy saving campaign. The goal is to find long term energy sources and while curbing the causes of global warming, which will ultimately improve the quality of life in Thailand,” he explained.
Burns and Roe Asia, Ltd. was founded in 1932. The company, with over 1,700 employees worldwide, is specialized in engineering, design, and consulting services in the power generation industry. They provide technical expertise in fossil-fueled power plants, including coal and natural gas combined cycle, as well as in biomass, cogeneration, and nuclear power plants. Studies in advanced technologies and alternative fuel solutions are also offered. Current clients include the Electricity Generating Authority of Thailand (EGAT), Gulf JP, Advance Agro, and GDF Suez.
Mr. Arthit Vechakij Managing Director of Excellent Energy International Company Limited (EEI) disclosed that in the last 11 years, his company had proved to be a leading Energy Service Company (ESCO) in Thailand with recognition including ESCO Excellence Award 2009 from the Federation of Thai Industries (FTI) supported by Department of Alternative Energy Development and Efficiency (DEDE),Ministry of Energy. “Our clients also commended with several recognitions for their efficiency. These companies include Thai Yamaha Motor Co., Ltd., Grand China Princess Hotel, Dusit Princess Hotel in Korat and Royal Princess Hotel Chiang Mai as they are selected to be successful business operators using the ESCO system in 2009 (ESCO Project Award 2009). This is the 2nd year in a row for EEI to have its clients nominated for the award and receive privileges as well as support from the government sector. There are still several other projects that have made our company proud such as services provided to Thai Beverage, 4 new cogeneration power plants development for CPF, Energy Management System (EMS) for Pataya Food Industry, manufacturer of Nautilus canned tuna, whose confidence has resulted in repeat order. In addition, EEI is the consultant for Department of Industrial Promotion, making industrial and business operators having greater confidence in the company. Our latest move to strengthen our position is the cooperation with Burns and Roe Asia, leading integrated engineering company from the United States. The firm, which has already been accepted for expertise by several companies operating in Thailand, is considered a fresh development in Energy Service Company (ESCO) business in Thailand,” he said.
Mr. Arthit Vechakij said: “The cooperation between EEI and Burns and Roe Asia was a result of new opportunity seeking on the part EEI. Discussions were made with Burns and Roe Asia to allow the 2 companies to see good potential together in facilitating to the growing demands from larger size customers. Our services will help make Thai business operators confident and continue relying on ESCO in the future.”
“EEI believe in 2010 it can generate revenue of 80 million baht, which is higher than before by 15%. We predict to help the country save by as much as 200 million baht, as a result of new projects from CPF Group worth 450 million baht, which include 4 new cogeneration power plants that can save up to 117 million baht a year. Projects made in cooperation with Burns and Roe Asia, which is similar to what we have provided to Thai Oil will also help save around 80 million baht a year. Our clients who are business operators believe that investment in energy conservation measures will help them save energy and cost. The rising oil prices of over US$80 per barrel will compel business operators to seek to reduce energy expense in order to maintain costs and create competitive advantages especially in the long run. We are seeing good improvement this year as the government continues to support business operators to seek proper energy management,” he added.
Meanwhile, Mr. Ruamlarp Anantasanta, Deputy Managing Director – Marketing & Business
Development of Excellent Energy International Company Limited (EEI) added on the business direction of EEI in 2010, saying the company would focus its business on what it does best, which would be the Cogeneration Power Plants and Energy Management System (EMS), including the Development and Energy Efficiency Management services “For the past 11 years, Cogeneration Power Plants have been the proud projects of EEI, where success can be proven and accepted widely, from thesuccess of Thailand ESCO Pilot Project with BKP to 4 more Cogeneration Power Plants for CPF Group. We also plan to establish a Energy Management System (EMS) which is the real time monitoring system of power consumption behaviors and coordination among concerned personnel in each area to allow business operators to utilize energy with maximum efficiency to reduce energy costs.
“In the current economic situation, the low investment cost of 5-20 million baht and payback period of only 1-2 years have been our value proposition . This is why our clients trust in our Energy Management System (EMS). EEI is able to develop software suitable to each individual operation following its strong experience and skills in energy management business in Thailand to deliver to each business’s specific needs perfectly. Our service also complies to the recent Energy saving act 2007 with integrated line of services could not be found in other operators. EEI’s unique services include application for necessary approval as required by the laws and regulations, seeking funding support from commercial banks, finding funding sources that provide privileges (special interest rate) in case of energy saving scheme and seeking privileges from the government sector such as financial support, DSM bidding and BOI,” said Mr. Ruamlap.
Mr. Mark Hunt, Managing Director of Burns and Roe Asia, Ltd. stated that his company’s recent cooperation with EEI, a leading Energy Service Company (ESCO) and well trusted by leading Thai operators, is an advantageous and strategic partnership that will benefit both companies’ quality of service. “Burns and Roe Asia’s presence and capabilities will be enhanced by the new opportunities brought forth by EEI. Our joint success will be achieved through a combination of world class services and skills in energy project management in Thailand, while maintaining a beneficial cost structure. We expect to execute at least 1 to 2 energy projects this year with an investment cost of 200-500 million Thai Baht, which will generate savings for Thailand by as much as 100-200 million Thai Baht a year,” he said.
“Thailand’s economy is recovering and moving in a positive direction, and that has a direct impact on domestic energy consumption. According to the Ministry of Energy, at the end of 2009, the amount of energy consumption recorded was higher than that recorded at the same time in 2008. This increase in energy consumption provides evidence that Thailand’s demand for energy is steadily moving in an upwards direction. In addition, the government policy which encourages the use of domestic energy sources and alternative energy, and promotes energy savings initiatives have contributed positively to the country’s energy industry by attracting new investments and expanding existing businesses,” he added.
“Our latest cooperation with EEI will help facilitate the growing energy needs in Thailand and advance the Thai government policy regarding domestic energy management and energy saving campaign. The goal is to find long term energy sources and while curbing the causes of global warming, which will ultimately improve the quality of life in Thailand,” he explained.
Burns and Roe Asia, Ltd. was founded in 1932. The company, with over 1,700 employees worldwide, is specialized in engineering, design, and consulting services in the power generation industry. They provide technical expertise in fossil-fueled power plants, including coal and natural gas combined cycle, as well as in biomass, cogeneration, and nuclear power plants. Studies in advanced technologies and alternative fuel solutions are also offered. Current clients include the Electricity Generating Authority of Thailand (EGAT), Gulf JP, Advance Agro, and GDF Suez.
Wednesday, December 16, 2009
JDR Cable Systems to Provide Inter Array Cables for London Array Offshore Wind Farm
JDR Cable Systems, a global provider of subsea power cables, offshore
umbilical systems and specialised marine cables has been awarded the
contract for the supply of subsea power array cables for the first phase
of London Array Offshore Wind Farm by the project consortium of DONG
Energy, E.ON and Masdar.
The first phase of the development, consisting of 175 wind turbines and
2 offshore substations will be installed in water depths of up to 23
meters some 20km (12 miles) from the Kent and Essex coasts in the outer
Thames Estuary. The wind farm will be connected by subsea export cables
to an onshore substation at Cleve Hill, on the North Kent coast. From
the substation, the electricity will be fed into the existing 400kV
transmission network.
The scope awarded to JDR includes the engineering, design and
manufacture of over 200km of 33kV array cables complete with proprietary
hang-off and termination systems providing the essential link between
individual wind turbine generators, wind turbine generator arrays and
the offshore substations. The cables will be produced in 2010 and 2011.
“The London Array project team were very clear in their determination to
procure array cables that would provide the highest long-term
reliability available in the market. JDR’s dedication to the highest
levels of quality management and continuous improvement, developed over
many years of providing subsea power cables and umbilical systems for
deepwater oil & gas projects, is fully aligned with the needs of
offshore wind farm operators. We shall also be providing JDR’s
proprietary array cable termination systems, which have been
specifically designed to minimise offshore installation costs. We are
very pleased that JDR was selected as the array cable supplier and we
look forward to embarking on this world class project,” stated Patrick
Phelan, managing director of JDR Cable Systems Ltd.
When complete the first phase of London Array will be among the world’s
largest offshore wind farms, delivering up to 630MW. This is enough
power for approximately 470,000 homes and will make a substantial
contribution to the UK Government’s target of providing 15% of all
electricity supply from renewable sources by 2015.
“JDR has made significant investments over the last three years to
address the growing and vital renewable energy initiatives taking hold
in the UK and other parts of the world. Our plant in Hartlepool was
carefully chosen to be located in the heart of the UK offshore community
to best serve their ambitious projects yet optimally service all of
Northern Europe and other geographies around the world”, commented Pat
Herbert, group CEO, JDR Cable Systems (Holdings) Ltd.
Richard Rigg, the London Array Project Director stated that “London
Array Limited and its Shareholders are very pleased that JDR Cable
Systems have been successful in acquiring this scope of work and that
the project is supporting the new UK facilities developed by JDR at
Hartlepool to serve the offshore wind industry.”
About JDR Cable Systems
JDR is a leading provider of custom-designed and manufactured static and
dynamic subsea power cables, umbilical systems and marine cables for a
broad range of applications throughout the oil and gas sector, offshore
renewable energy industry, and seismic and defence markets.
JDR was featured in The Sunday Times Buyout Track 100 of the UK’s top
Private Equity-owned businesses. JDR ranked twelfth on the annual list
of 100 companies, and was the highest Original Equipment Manufacturer on
the list.
About the London Array Consortium
London Array Limited has three shareholders: E.ON, DONG Energy and
Masdar.
E.ON is one of the UK’s leading power and gas companies – generating and
distributing electricity, and retailing power and gas – and is part of
the E.ON group, the world’s largest investor-owned power and gas company.
DONG Energy is one of the leading energy groups in Northern Europe. We
are headquartered in Denmark. Our business is based on procuring,
producing, distributing and trading in energy and related products in
Northern Europe.
Masdar, wholly owned by the Mubadala Development Company (Mubadala), is
Abu Dhabi’s multi-faceted initiative in the development and
commercialization of renewable energy and sustainable technology.
umbilical systems and specialised marine cables has been awarded the
contract for the supply of subsea power array cables for the first phase
of London Array Offshore Wind Farm by the project consortium of DONG
Energy, E.ON and Masdar.
The first phase of the development, consisting of 175 wind turbines and
2 offshore substations will be installed in water depths of up to 23
meters some 20km (12 miles) from the Kent and Essex coasts in the outer
Thames Estuary. The wind farm will be connected by subsea export cables
to an onshore substation at Cleve Hill, on the North Kent coast. From
the substation, the electricity will be fed into the existing 400kV
transmission network.
The scope awarded to JDR includes the engineering, design and
manufacture of over 200km of 33kV array cables complete with proprietary
hang-off and termination systems providing the essential link between
individual wind turbine generators, wind turbine generator arrays and
the offshore substations. The cables will be produced in 2010 and 2011.
“The London Array project team were very clear in their determination to
procure array cables that would provide the highest long-term
reliability available in the market. JDR’s dedication to the highest
levels of quality management and continuous improvement, developed over
many years of providing subsea power cables and umbilical systems for
deepwater oil & gas projects, is fully aligned with the needs of
offshore wind farm operators. We shall also be providing JDR’s
proprietary array cable termination systems, which have been
specifically designed to minimise offshore installation costs. We are
very pleased that JDR was selected as the array cable supplier and we
look forward to embarking on this world class project,” stated Patrick
Phelan, managing director of JDR Cable Systems Ltd.
When complete the first phase of London Array will be among the world’s
largest offshore wind farms, delivering up to 630MW. This is enough
power for approximately 470,000 homes and will make a substantial
contribution to the UK Government’s target of providing 15% of all
electricity supply from renewable sources by 2015.
“JDR has made significant investments over the last three years to
address the growing and vital renewable energy initiatives taking hold
in the UK and other parts of the world. Our plant in Hartlepool was
carefully chosen to be located in the heart of the UK offshore community
to best serve their ambitious projects yet optimally service all of
Northern Europe and other geographies around the world”, commented Pat
Herbert, group CEO, JDR Cable Systems (Holdings) Ltd.
Richard Rigg, the London Array Project Director stated that “London
Array Limited and its Shareholders are very pleased that JDR Cable
Systems have been successful in acquiring this scope of work and that
the project is supporting the new UK facilities developed by JDR at
Hartlepool to serve the offshore wind industry.”
About JDR Cable Systems
JDR is a leading provider of custom-designed and manufactured static and
dynamic subsea power cables, umbilical systems and marine cables for a
broad range of applications throughout the oil and gas sector, offshore
renewable energy industry, and seismic and defence markets.
JDR was featured in The Sunday Times Buyout Track 100 of the UK’s top
Private Equity-owned businesses. JDR ranked twelfth on the annual list
of 100 companies, and was the highest Original Equipment Manufacturer on
the list.
About the London Array Consortium
London Array Limited has three shareholders: E.ON, DONG Energy and
Masdar.
E.ON is one of the UK’s leading power and gas companies – generating and
distributing electricity, and retailing power and gas – and is part of
the E.ON group, the world’s largest investor-owned power and gas company.
DONG Energy is one of the leading energy groups in Northern Europe. We
are headquartered in Denmark. Our business is based on procuring,
producing, distributing and trading in energy and related products in
Northern Europe.
Masdar, wholly owned by the Mubadala Development Company (Mubadala), is
Abu Dhabi’s multi-faceted initiative in the development and
commercialization of renewable energy and sustainable technology.
Tuesday, December 15, 2009
Ratchaburi Holding Reports progress of 1,878-MW Hongsa Thermal Power Plant Project - signing 25-year concession agreement for electricity generation
Ratchaburi Electricity Generating Holding Public Company Limited (Ratchaburi Holding) has reported to the Stock Exchange of Thailand (SET) that Hongsa Power Co., Ltd. (HPC) and Phu Fai Mining Co., Ltd. (PFMC), both of which are joint venture companies with 40% and 37.5% respectively of equity acquired by Ratchaburi Holding are set to the operate Hongsa Thermal Power Plant project. The concession agreement was signed yesterday with the Lao PDR. (November 30, 2009).
According to the concession agreement, HPC will perform obtain a concession for electricity generation whereas PFMC will receive a concession for lignite mining from the Lao PDR. Both agreements have 25-year durations starting date of commercial operations for electricity generation and lignite mining.
Mr. Noppol Milinthanggoon, the President of Ratchaburi Electricity Generating Holding PCL., said that “the concession agreement signing between HPC and Lao PDR. is a significant milestone for the Hongsa Thermal Power Plant project, which is a joint investment by the Company, Banpu Group and LHSE (Lao Holding State Enterprise). This is an IPP with a high project value, which combined the expertise of the joint-ventures. Ratchaburi Holding has a proven record in IPP project development and management while Banpu Group has expertise in the coal mining industry and LHSE has long standing experience in electricity utility development in the Lao PDR. With the above mentioned factors, the Company strongly believes that this project will enhance the stability of the electricity system in both Thailand and the Lao PDR.”
Hongsa Thermal Power Plant is coal-fired using lignite as the primary fuel for electricity generation. It is a shared equity enterprise from Ratchaburi Holding with 40%, Banpu Power Co., Ltd. with 40% and Lao Holding State Enterprise with 20%. With a total installed capacity of 1,878 MW, the project has 3 units, 626 MW each, and it is expected to start commercial operation by 2015. According to the MOU signed on May 13, 2009, electricity of 1,473 MW will be sold to the Electricity Generating Authority of Thailand (EGAT) and approximately 100 MW will be sold to Electricite du Laos: EDL to support the power demands of the Lao PDR, the remainder will be used for the lignite mining operation and the project’s electricity generation.
According to the concession agreement, HPC will perform obtain a concession for electricity generation whereas PFMC will receive a concession for lignite mining from the Lao PDR. Both agreements have 25-year durations starting date of commercial operations for electricity generation and lignite mining.
Mr. Noppol Milinthanggoon, the President of Ratchaburi Electricity Generating Holding PCL., said that “the concession agreement signing between HPC and Lao PDR. is a significant milestone for the Hongsa Thermal Power Plant project, which is a joint investment by the Company, Banpu Group and LHSE (Lao Holding State Enterprise). This is an IPP with a high project value, which combined the expertise of the joint-ventures. Ratchaburi Holding has a proven record in IPP project development and management while Banpu Group has expertise in the coal mining industry and LHSE has long standing experience in electricity utility development in the Lao PDR. With the above mentioned factors, the Company strongly believes that this project will enhance the stability of the electricity system in both Thailand and the Lao PDR.”
Hongsa Thermal Power Plant is coal-fired using lignite as the primary fuel for electricity generation. It is a shared equity enterprise from Ratchaburi Holding with 40%, Banpu Power Co., Ltd. with 40% and Lao Holding State Enterprise with 20%. With a total installed capacity of 1,878 MW, the project has 3 units, 626 MW each, and it is expected to start commercial operation by 2015. According to the MOU signed on May 13, 2009, electricity of 1,473 MW will be sold to the Electricity Generating Authority of Thailand (EGAT) and approximately 100 MW will be sold to Electricite du Laos: EDL to support the power demands of the Lao PDR, the remainder will be used for the lignite mining operation and the project’s electricity generation.
Monday, December 7, 2009
Free Green Technologies Seminar and Exhibition
The Royal Danish Embassy in Bangkok is hosting a combined green technology exhibition and seminar as a lead-up to the COP15 conference in Copenhagen in December 2009.
Beside the invited government and state enterprise officials, academics in engineering and architecture, and corporate firms with interest in green tech¬nologies and energy reduction, the Danish Embassy would like to invite interested among the public. The seminar is free of charge and will be held in Thai language.
Different green technology products will be presented during the whole day event comprising of solar panels, cooling systems based on the burning of biomass suitable for larger cooling systems and buildings, organic waste water treatment systems, smart solutions for electric grids that reduced the usage of electricity, low energy houses, machinery for the fishing/shrimp industry that reduced the usage of water and chemicals, recycling of organic waste and others.
It is expected that 300 delegates, including government officials, academics, and business people with interest in eco technologies will be participating in the event. H.E. Dr. Wannarat Channukul, Minister of Energy in Thailand and the Danish Ambassador to Thailand, H.E. Michael Sternberg will preside over the opening ceremony.
Beside the invited government and state enterprise officials, academics in engineering and architecture, and corporate firms with interest in green tech¬nologies and energy reduction, the Danish Embassy would like to invite interested among the public. The seminar is free of charge and will be held in Thai language.
Different green technology products will be presented during the whole day event comprising of solar panels, cooling systems based on the burning of biomass suitable for larger cooling systems and buildings, organic waste water treatment systems, smart solutions for electric grids that reduced the usage of electricity, low energy houses, machinery for the fishing/shrimp industry that reduced the usage of water and chemicals, recycling of organic waste and others.
It is expected that 300 delegates, including government officials, academics, and business people with interest in eco technologies will be participating in the event. H.E. Dr. Wannarat Channukul, Minister of Energy in Thailand and the Danish Ambassador to Thailand, H.E. Michael Sternberg will preside over the opening ceremony.
Glow’s profitability on track in Q3 2009
Glow Group (“Glow”) posted consolidated total revenues of THB 25,836 million, Earnings Before Interest Taxes Depreciation and Amortization (“EBITDA”) of THB 5,743 million and Normalized Net Profit (“NNP”, net profit before unrealized foreign exchange gains and losses) of THB 2,669 million for the 9 months of 2009.
The 3rd quarter NNP of 2009 for Glow stood at THB 899 million. The key drivers for the result were strong industrial customers’ sales, whose power and steam consumption have returned back to normal levels since mid year, and favorable operating margins, where fuel prices have stabilized along with the electricity tariffs.
The 3rd quarter result is THB 274 million below the previous quarter, mainly because of two key reasons. First, unlike in the previous quarter, the 3rd quarter result does not include the business interruption compensation for the outage earlier this year of the 150 MW coal-fired Unit 1. The Company expects to receive the remaining business interruption claim of more than THB 100 million. Secondly, there was lower availability in the 3rd quarter due to a minor forced outage and a one-month major maintenance of the 150 MW coal-fired Unit 2, which was deferred from the previous quarter, the total effect was a reduction in profitability in the 3rd quarter by about 100 million baht. The 4th quarter plant availability is expected to return to normal as there is no other major maintenance scheduled until later 2011
Mr. Esa Heiskanen, the CEO of Glow Group commented: “The operation and performance of the Group have returned to normal and our industrial customer sales volumes have returned to expected levels. Our operating margin has also recovered to normal levels as the Ft remains high and fuel prices have stabilized .”
Mr. Esa continued to add “We are following up very closely on what the impact of the temporary suspension ruling has on our numerous customers in Map Ta Phut, Glow currently has all the necessary permits for our expansions, including the 115 MW coal-fired, 382 MW gas-fired, and 660 MW coal-fired IPP. Our expansions will utilize proven technology to ensure low emissions and will include reduction in emission from our existing plants, where the net result will be an improvement in the overall air quality in Map Ta Phut. We are confident that our projects are environmentally sound and will benefit surrounding communities as the total emission from our existing and new plants would be lower than current levels.
”Glow’s year-to-date interest expenses and corporate income tax have increased from same period last year. The effective tax rate has gradually been increasing year on year, as tax privileges for some of Glow’s older plants are starting to expire. However, the overall effective tax rate for the group will come down after the tax exemption period begins for the expansion projects after commercial operation starting in 2010.
Mr. Suthiwong Kongsiri, the CFO of Glow Group further explained: “The increased interest expenses is not due to higher funding costs but it is reflecting the higher debt level due especially to our strategy to pre-fund some of our funding needs at the beginning of the year, this strategy is aimed at mitigating liquidity risk which has resulted from troubles in global financial market. We now have the necessary funding through to the 2nd quarter of 2010 and are very confident in our ability to secure the remaining funds needed for our expansion projects, thanks to our solid business fundamentals, robust performance and improved market conditions.”
About Glow Energy
Glow Energy is a member of the Glow Group who is a major energy player in Thailand. Glow Group combined installed capacities include 1,860 MW (Glow’s stake is 1,775 MW) of electricity and 967 tons per hour of steam.
Glow Group generate and supply electricity to Electricity Generating Authority of Thailand (EGAT) under Thailand's SPP (Small Power Producer) and IPP (Independent Power Producer) programs, as well as electricity, steam, industrial water and services to large industrial customers principally located in the Map Ta Phut area and nearby.
GDF SUEZ Energy Europe & International is Glow Energy’s major shareholder and is a division of the GDF SUEZ Group, one of the largest international industrial and services groups in the world.
The 3rd quarter NNP of 2009 for Glow stood at THB 899 million. The key drivers for the result were strong industrial customers’ sales, whose power and steam consumption have returned back to normal levels since mid year, and favorable operating margins, where fuel prices have stabilized along with the electricity tariffs.
The 3rd quarter result is THB 274 million below the previous quarter, mainly because of two key reasons. First, unlike in the previous quarter, the 3rd quarter result does not include the business interruption compensation for the outage earlier this year of the 150 MW coal-fired Unit 1. The Company expects to receive the remaining business interruption claim of more than THB 100 million. Secondly, there was lower availability in the 3rd quarter due to a minor forced outage and a one-month major maintenance of the 150 MW coal-fired Unit 2, which was deferred from the previous quarter, the total effect was a reduction in profitability in the 3rd quarter by about 100 million baht. The 4th quarter plant availability is expected to return to normal as there is no other major maintenance scheduled until later 2011
Mr. Esa Heiskanen, the CEO of Glow Group commented: “The operation and performance of the Group have returned to normal and our industrial customer sales volumes have returned to expected levels. Our operating margin has also recovered to normal levels as the Ft remains high and fuel prices have stabilized .”
Mr. Esa continued to add “We are following up very closely on what the impact of the temporary suspension ruling has on our numerous customers in Map Ta Phut, Glow currently has all the necessary permits for our expansions, including the 115 MW coal-fired, 382 MW gas-fired, and 660 MW coal-fired IPP. Our expansions will utilize proven technology to ensure low emissions and will include reduction in emission from our existing plants, where the net result will be an improvement in the overall air quality in Map Ta Phut. We are confident that our projects are environmentally sound and will benefit surrounding communities as the total emission from our existing and new plants would be lower than current levels.
”Glow’s year-to-date interest expenses and corporate income tax have increased from same period last year. The effective tax rate has gradually been increasing year on year, as tax privileges for some of Glow’s older plants are starting to expire. However, the overall effective tax rate for the group will come down after the tax exemption period begins for the expansion projects after commercial operation starting in 2010.
Mr. Suthiwong Kongsiri, the CFO of Glow Group further explained: “The increased interest expenses is not due to higher funding costs but it is reflecting the higher debt level due especially to our strategy to pre-fund some of our funding needs at the beginning of the year, this strategy is aimed at mitigating liquidity risk which has resulted from troubles in global financial market. We now have the necessary funding through to the 2nd quarter of 2010 and are very confident in our ability to secure the remaining funds needed for our expansion projects, thanks to our solid business fundamentals, robust performance and improved market conditions.”
About Glow Energy
Glow Energy is a member of the Glow Group who is a major energy player in Thailand. Glow Group combined installed capacities include 1,860 MW (Glow’s stake is 1,775 MW) of electricity and 967 tons per hour of steam.
Glow Group generate and supply electricity to Electricity Generating Authority of Thailand (EGAT) under Thailand's SPP (Small Power Producer) and IPP (Independent Power Producer) programs, as well as electricity, steam, industrial water and services to large industrial customers principally located in the Map Ta Phut area and nearby.
GDF SUEZ Energy Europe & International is Glow Energy’s major shareholder and is a division of the GDF SUEZ Group, one of the largest international industrial and services groups in the world.
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