RATCH Records 7% Lower of Profit in 2018, Insurance to Support Dam Collapse in Laos

Ratchaburi Electricity Generating Holding Public Company Limited (RATCH) has reported its consolidated financial statement yearly 2018 through the Stock Exchange of Thailand as follows:

The operating result according to the consolidated financial statement for the year 2018 showed the profit of THB 5,587.60 million, decreased by THB 450.95 million, or 7.5%, compared to the profit of THB 6,038.55 million in 2017. The decrease of profit was due to a recorded loss on foreign exchange of THB 865.02 million from the depreciated in AUD currency.

 

As for the collapse of the Saddle Dam of Xe-Pian Xe-Namnoy Hydroelectric Power Project, RATCH states that the company has a standard insurance package in accordance with the loan agreement, including all risk insurance for construction, third-party liability insurance, and delay start-up insurance. The costs incurred as a result of the collapse are primarily the responsibility of the contractor in charge of engineering, procurement and construction.

Currently, the company together with its insurers is in the process of assessing the situation and the Government of Lao PDR appointed National Investigation Committee to investigate such a situation which expects to finish in 2019.

Xe-Pian Xe-Namnoy Power Company Limited, the developer of Xe-Pian Xe-Namnoy Hydroelectric Power Project with a capacity of 410MW, is a joint venture company among SK Engineering & Construction Company Limited (26%), Korea Western Power Company Limited (25%), Lao Holding State Enterprise (24%) and RATCH (25%). The project is located in Attapeu and Champasak Provinces in Lao PDR.