MIRA
INFORM REPORT
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Report Date : |
11.05.2007 |
IDENTIFICATION DETAILS
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Name : |
ELECTRICITY
GENERATING AUTHORITY OF |
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Registered Office : |
53 Moo 2, |
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Country : |
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Financials (as on) : |
31.12.2005 |
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Date of Incorporation : |
1969 |
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Legal Form : |
State |
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Line of Business : |
Engaged in electricity
and the related
business operation including
electricity generation, purchase
and transmission, service businesses
and investment in
energy related businesses. |
RATING & COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
NAME
ELECTRICITY
GENERATING AUTHORITY OF
SUMMARY
BUSINESS ADDRESS : 53
MOO 2,
T. BANGKRUAI,
A. BANGKRUAI,
TELEPHONE : [66] 2436-0000
FAX : [66] 2436-4835
ESTABLISHED : 1969
FISCAL
YEAR CLOSING DATE : SEPTEMBER 30
LEGAL STATUS : STATE
EXECUTIVE : MR.
KRAISRI KARNASUTA, THAI
THE GOVERNOR
NO. OF
STAFF : 24,000
LINES OF
BUSINESS : SUPPLIER
OF COUNTRY’S ELECTRICITY
CORPORATE PROFILE
OPERATING TREND : STABLE
PRESENT SITUATION : OPERATING
NORMALLY
REPUTATION : GOOD
WITH
MANAGEMENT STANDARD : MANAGING
WITH GOOD PERFORMANCE
HISTORY
Power generation faced
difficulty after World
War II as
many of the
country’s generating plants
were badly damaged
and there were
acute scarcity and
increasing cost of
firewood and fuel
oil for electricity
generation.
In quest of
nationwide electricity supply,
the government established
the Yanhee Electricity
Authority in 1957
to supply 36
northern and the
To increase generating
capacity, to improve
the transmission system
and to upgrade
the efficiency of
employees, the three
state agencies were
merged on May
1, 1969 to
form a new
state enterprise the
ELECTRICITY GENERATING AUTHORITY
OF THAILAND [EGAT].
It currently employs
24,000 staff.
At the beginning,
EGAT’s main task
was to prevent
power shortages by
constructing large and
modern power plants
to produce sufficient
electricity for the
whole country.
The subject’s current
operation address is
53 Moo 2, Charansanitwongse Rd.,
T. Bangkruai, A. Bangkruai,
Nonthaburi 11130.
THE BOARD OF DIRECTORS
Name Age
Mr. Chai-anan Samudavanija : Chairman
63
Mr. Norkun Sitthiphong 54
Pol. Lt. Gen. Damrongsak Nilkuha 64
Mr. Chulasingh Vasantasingh 57
Mr. Pichai Chunhavajira 58
Mr. Sujarit Patchimnun 62
Mrs. Wanee Samphantharak 63
Mr. Lae Dilokvidhayarat 60
Mr. Boonsak Jiampreeda 58
Mr. Pala Sookawesh 67
Mr. Sanit Rangnoi 59
Mrs. Gasinee Witoonchart 60
Mr. Kraisi Karnasuta 60
MANAGEMENT
Mr. Kraisi Karnasuta : Governor
Mr. Kitti Sirikwin : Senior
Deputy Governor-Development Group
Mr. Narong Sitasuwan : Senior Deputy Governor-Generation Group
Mr. Kamphuy Jiraruensak : Senior Governor-Transmission System Group
Mr. Kajornsak Hotrabhavanda : Deputy
Governor-Planning
Mr. Santad Jirayuwat : Deputy
Governor-Account and Finance
Mr. Pichai Chulpongstorn : Deputy
Governor-Administration
Mr. Vudtichai Eksangsri : Deputy
Governor-Power Plant Development
Ms. Sutharat Angchanpen : Deputy
Governor-Transmission System
Development
Mr. Paiboon Thepmongkol : Deputy
Governor-Power Plant
Mr. Sombat Sarntijaree : Deputy
Governor-Operation and Maintenance
Mr. Sahai Rakyao : Deputy
Governor-Transmission System
Mr. Vinit Tangnoi : Deputy
Governor-System Control
Mr. Boonchoo Direksathapon : Deputy Governor to the Office of Governor
Mr. Visit Akravinek : Engineer
Level 14 under
the supervision of
the
Governor
The management team
could not be
revealed as some
management does not
want their names
to be opened
to the public,
they do not want
to let outsiders
know that they
are still in the management
team.
BUSINESS OPERATIONS
The subject is
engaged in electricity
and the related
business operation including
electricity generation, purchase
and transmission, service businesses
and investment in
energy related businesses.
Its businesses are
as follows:
1.
Electricity Business
1.1
Generation
The
subject owns and
operates generating facilities
in 36 locations
countrywide. Its generating
facilities include thermal
power plants, combined
cycle power plants,
gas turbines, diesel
power plants, hydropower
plants as well
as renewable energy
power plants.
1.2
Power
Purchase
The
subject also purchases,
under long-term power
purchase agreements, bulk
electricity from private
power producers, including
IPPs, SPPs, and
neighbouring countries, namely
Laos and Malaysia.
1.3
Transmission
The
subject transmits and
sells bulk electricity
through its transmission
network at different
voltages ranging from
69 kV, 115 kV, 132 kV,
230 kV, 300 kV, to 500
kV to
distributing authorities, namely
MEA and PEA,
who then delivery
to their end-users
countrywide. It also
sells electricity directly
to a small
number of direct
customers and neighboring
utilities in Laos
and Malaysia.
2.
Other Business
2.1
Service
Business
Subject
provides energy-related services
for external companies
and organizations. Its
services mainly include
power plant operation
and maintenance, engineering
consulting, survey, testing
and chemical analysis
and etc.
2.2
Investment
Business
The
subject’s investment primarily
lies in power
companies which invest
in electricity business,
by through its
two subsidiaries, namely
Ratchaburi Electricity Generating
Holding Public Company
Limited and EGAT
Telecom Company Limited,
as well as
through its associated - Electric Generating
Public Company Limited
and joint venture
companies. The subject
is the country’s
biggest power producer
having a total
generating capacity of
15,794.57 MW or
59.71 percent of
the country’s total
generation capacity. It
also owns and
operates the national
transmission network consisting
of 29,259.08 circuit-kilometers of
high voltage transmission
lines and 201
substations with a
total transformer capacity
of 65,051.84 Megavolt-Amperes [MVA.] Subject
is the sole
purchaser of electric
power from private
power producers including
8,000 MW from large-scale
independent power from
private power producers [PPs], 2,015.60 MW
from small power
producers [SPPs], and 640
MW from neighboring
power utilities
For
the business expansion
into foreign market,
the subject was
awarded a new
O&M service contract
by the National
Electricity Corporation [NEC] of
Sudan for the
third consecutive term.
Under the new
contract of 40.80 Million
baht. Subject will
provide O&M services
for NEC’s El
Gaili power plant
and also provide
O&M training for
Sudanese engineers.
IMPORT
Most of its
raw material, mainly
natural gas are
purchased from local supplier, some
of its raw
material, as well
as machinery and
spare parts are
imported from Myanmar,
Laos, Malaysia, Germany,
U.K. and Japan.
MAJOR SUPPLIERS
PTT Public Company
Limited :
IRPC Public Company
Limited :
Siemens Group
Banpu Public Company
Limited :
Ongoing Power
Projects
Under the present
national Power Development
Plan [PDP] which covers
power development projects
for the period
of 2004-2015, subject
has presently implemented
four power projects
earlier approved by
the cabinet, consists
of:
1.
Songkhla
combined cycle block
1
2.
3.
Bangpakong
combined cycle block
5
4.
Operating Performance
[Million Baht]
2005 2004
Revenue from sales and services 279,094.05 274,579.56
Income from sales
and services 4,779.58
38,893.90
Gains [Losses] on foreign
exchange 1,754.14 [646.85]
Interest expenses 7,222.11 8,209.41
Net income [loss] [173.13] 30,532.55
Gross Energy
Generation Purchase
|
|
2005 |
2004 |
||
|
Source |
Million kWh |
% |
Million kWh |
% |
|
EGAT’s Power Plants |
|
|
|
|
|
Natural Gas |
33,064.96 |
24.52 |
30,901.08 |
24.24 |
|
Lignite |
18,334.45 |
13.60 |
17,993.57 |
14.12 |
|
Hydropower |
5,671.18 |
4.21 |
5,896.29 |
4.63 |
|
Fuel oil |
7,640.01 |
5.67 |
5,467.67 |
4.29 |
|
Diesel oil |
175.79 |
0.13 |
232.95 |
0.18 |
|
Renewable energy |
2.26 |
- |
2.13 |
- |
|
Subtotal |
64,889.65 |
48.13 |
60,493.70 |
47.46 |
Energy Sales
|
Customer |
2005 |
2004 |
||
|
|
Million kWh |
% |
Million kWh |
% |
|
MEA |
41,439.84 |
32.62 |
40,572.28 |
33.65 |
|
PEA |
83,133.55 |
65.45 |
77,831.10 |
64.56 |
|
Direct customers |
1,590.89 |
1.25 |
1,545.80 |
1.28 |
|
Standby power supply |
50.41 |
0.04 |
37.50 |
0.03 |
|
Electricite du Laos
[EDL] |
492.86 |
0.39 |
251.16 |
0.21 |
|
Tenaga Nasional Berhad
[TNB]- |
1.16 |
- |
0.02 |
- |
|
Other minor customers |
315.21 |
0.25 |
329.14 |
0.27 |
|
Total |
127.023.91 |
100.00 |
120,567.00 |
100.00 |
MAJOR CUSTOMERS
Provincial Electricity Authority
[PEA] :
Metropolitan Electricity Authority
[MEA] :
Direct customers :
Electricite du Laos
[EDL] :
INVESTMENT
Subsidiary
Ratchaburi Electricity
Generating Holding Public
Company Limited [RATCH]
Business Type : Holding and investing company
Investment : 45%
by the subject
EGAT Telecom
Company Limited [EGAT
Telecom]
Business Type : Telecommunication operation
Investment : 99.99%
by the subject
Associated
Electricity Generating Public
Co., Ltd. [EGCO]
Business Type : Independent
power producer
Investment : 25.41%
by the subject
Joint Venture
District Cooling
System and Power
Plant Company Limited
[DCAP]
Business Type :
generating and selling
of electricity and
cooling water to
Suvarnabhumi Airport.
Investment :
35% by the
subject
BANKING
Krung Thai Bank
Public Co., Ltd.
The Siam Commercial
Bank Public Co.,
Ltd.
Bangkok Bank Public
Co., Ltd.
Kasikornbank Public Co.,
Ltd.
EMPLOYMENT
The subject employs
approximately 24,000 staff.
LOCATION DETAILS
The premise is
owned for operating
an office at
the heading address
in residential area.
REMARK
THE CREDIT OF EUR
100,000 SHOULD BE
IN ORDER.
COMMENT
EGAT’s major
operations involve generation,
acquisition, transmission and
sales of electricity.
It also engages
in maintenance services
business and other
energy-related businesses. For
over 37 years,
EGAT has successfully
fulfilled its entrusted
mission in constantly
developing generation and
transmission systems and
providing an adequate,
efficient and reasonable-priced electricity
supply to support
the country’s economic and
social developments.
NAME OF
AUDITOR & CERTIFIED
PUBLIC
ACCOUNTANT NO.:
Office of Auditor
General of Thailand
[as of June
20, 2006]
[Signed] Mrs. Prungsri Chobtham
Auditor-in-charge
Acting Director of
Audit Office
[Signed] Mrs. Launruk Thanee
Auditor-in-Charge
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2005 & 2004 were:
ASSETS
|
Current Assets |
2005 |
2004 |
|
|
|
|
|
Cash and cash
equivalents |
26,215,471,646 |
30,247,091,416 |
|
Short-term investments |
10,046,291,677 |
6,536,887,992 |
|
Trade account receivables - others-net |
24,601,154,953 |
46,556,686,310 |
|
Trade account receivables - related party |
307,892,128 |
313,577,213 |
|
Materials and supplies-net |
7,044,554,564 |
4,916,093,114 |
|
Other Current Assets
|
|
|
|
Other account
receivables - others-net |
3,652,252,691 |
3,614,425,440 |
|
Other account
receivables - related
party |
510,000 |
- |
|
Others |
5,235,487,403 |
2,249,867,830 |
|
Total Current
Assets |
77,103,615,062 |
94,434,629,315 |
|
NON-CURRENT ASSETS |
|
|
|
Investment in
subsidiary and joint
venture by using
the equity method |
10,438,306,983 |
8,739,535,133 |
|
Investment in
associated company by using
the equity method
|
6,096,774,851 |
5,249,535,111 |
|
Land, buildings,
plants and equipments-net |
224,873,345,027 |
229,082,914,769 |
|
Intangible assets |
16,461,242,012 |
16,141,277,407 |
|
Work under
construction |
10,564,960,011 |
11,001,730,492 |
|
Other non-current assets |
1,786,407,250 |
2,825,503,658 |
|
Total Assets
|
347,324,651,196 |
367,475,125,885 |
LIABILITIES & SHAREHOLDERS'
EQUITY [BAHT]
|
Current Liabilities |
2005 |
2004 |
|
|
|
|
|
Trade account payables-others |
19,315,336,929 |
14,974,588,019 |
|
Trade account payables |
|
|
|
- related party |
13,065,396,300 |
12,720,547,776 |
|
Current portion of
long-term liabilities |
22,357,696,229 |
15,494,362,924 |
|
Current portion of
financial lease |
- |
791,675 |
|
Other Current Liabilities |
|
|
|
Other account
payables |
9,005,965,281 |
3,855,591,760 |
|
Accrued remittance
to the Ministry
of Financial |
8,221,592,871 |
9,567,481,452 |
|
Accrued interest
expenses |
1,425,322,760 |
1,615,566,678 |
|
Others |
4,656,749,719 |
6,763,482,729 |
|
Total Current
Liabilities |
78,048,060,089 |
64,992,413,013 |
|
Long-term liabilities |
83,967,635,176 |
104,555,929,322 |
|
Provision liabilities for
mine reclamation |
1,612,852,032 |
1,571,367,658 |
|
Other non-current liabilities |
7,309,535,398 |
7,229,311,261 |
|
Total Liabilities |
170,938,082,695 |
178,349,021,254 |
|
|
|
|
|
Shareholders'
Equity |
|
|
|
Contribution from
the government |
9,500,639,921 |
9,562,972,684 |
|
Share of
equity from subsidiary
and Associated company
by using the
equity method |
3,011,488,985 |
2,929,893,952 |
|
Surplus from
royalty on real
property service |
474,767,280 |
474,767,280 |
|
Retained earnings |
|
|
|
Appropriated |
|
|
|
Capital expenditure
appropriation |
80,186,366,913 |
80,186,366,913 |
|
Unappropriated |
83,213,305,402 |
95,972,103,802 |
|
Total
Shareholders' Equity |
176,386,568,501 |
189,126,104,631 |
|
Total
Liabilities & Shareholders' Equity |
347,324,651,196 |
367,475,125,885 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2005 |
2004 |
|
|
|
|
|
Revenue from electric
energy sales |
259,865,410,743 |
259,353,648,593 |
|
Revenue from services
and other goods
sales |
21,989,958,417 |
19,688,056,760 |
|
Total revenue
from sales and services |
281,855,369,160 |
279,041,705,353 |
|
Cost of
Sales |
|
|
|
Cost of
electric energy sales |
246,492,809,469 |
215,738,749,766 |
|
Cost of services
and other goods
sales |
21,634,325,404 |
19,512,360,883 |
|
|
|
|
|
Total cost of
sales and services |
268,127,134,873 |
235,251,110,649 |
|
|
|
|
|
Gross Profit |
13,728,234,287 |
43,790,594,704 |
|
Selling and Administrative Expenses |
15,713,421,620 |
12,170,727,144 |
|
|
|
|
|
Income from Sales
and Services |
[1,985,187,333] |
31,619,867,560 |
|
Other Revenues |
|
|
|
Bank interests |
604,565,202 |
350,818,506 |
|
Profit on
sale of Ratchaburi
Power Plants Project |
- |
1,277,963,383 |
|
Profit on
sale of Lan
Krabu Power Plant |
- |
59,959,105 |
|
Profit on
disposal of assets |
- |
3,115,186 |
|
Gain from
foreign exchange |
1,753,086,404 |
- |
|
Gain from
reversal of and
impairment loss |
188,000,000 |
- |
|
Others |
1,310,554,136 |
1,738,613,771 |
|
Total Other
Revenues |
3,856,205,742 |
3,430,469,951 |
|
Other Expenses |
|
|
|
Losses on
foreign exchange |
- |
646,601,298 |
|
Loss on
impairment assets |
15,333,506 |
- |
|
Loss on
disposal of assets |
84,582,914 |
- |
|
Others |
16,998,410 |
21,356,417 |
|
Total Expenses |
116,914,830 |
667,957,715 |
|
|
|
|
|
Operating Income |
1,754,103,579 |
34,382,379,796 |
|
Share of Profit
from Subsidiaries and
Joint Venture by
Using the Equity
Method |
2,919,026,920 |
1,818,967,461 |
|
Share of Profit
from Associated Company
by Using the
Equity Method |
1,166,965,693 |
1,315,930,906 |
|
Income Before Interest
Expenses |
5,840,096,192 |
37,517,278,163 |
|
Interest Expenses |
[6,013,222,484] |
[6,984,729,435] |
|
Net Profit / [Loss] |
[173,126,292] |
30,532,548,728 |
PROFIT &
LOSS ACCOUNT
|
|
2005 |
2004 |
|
|
|
|
|
Unappropriated Retained
Earnings at Beginning
of year |
189,126,104,631 |
171,434,559,336 |
|
Increase [Decrease] During
the Period |
19,262,270 |
[273,521,982] |
|
Net Loss for
the Period |
[173,126,292] |
30,532,548,728 |
|
Increase Provision for
Remittance to the
Ministry of Finance [Oct. to Dec. 2004] |
[3,868,548] |
- |
|
Provision for Remittance
to the Ministry of Finance |
[12,581,803,560] |
[12,567,481,451] |
|
Unappropriated Retained
Earnings at End
of Year |
176,386,568,501 |
189,126,104,631 |
FINANCIAL ANALYSIS
Annual Growth
& Profitability
|
Annual Growth |
2005 |
2004 |
|
Net Sales |
1.01 |
|
|
Operating Profit |
[106.22] |
|
|
Net Profit |
[100.57] |
|
|
Fixed Assets |
[1.84] |
|
|
Total Assets |
[5.48] |
|
|
Profitability |
|
|
|
Cost of Good
Sold |
95.13 |
84.31 |
|
Operating Profit Margin |
[0.70] |
11.33 |
|
S & A
Expenses |
5.57 |
4.36 |
|
Interest Paid |
2.13 |
2.50 |
|
Net Profit Margin |
[0.06] |
10.94 |
Net Sales was
increased by 1.01%,
Operating Profit was
decreased by 106.22%,
Net Profit was
decreased by 100.57%,
Fixed Assets was
decreased by 1.84%,
Total Assets was
decreased by 5.48%.
Compare each cost
with sales, Cost of
Good Sold was
increased from 84.31%
to 95.13%, Operating
Profit Margin was
decreased from 11.33%
to -0.70%, S
& A Expenses
was increased from
4.36% to 5.57%,
Interest Paid was decreased
from 2.50% to
2.13%, Net Profit
Margin was decreased
from 10.94% to
-0.06%.
Liquidity
|
Liquidity |
2005 |
2004 |
|
Current Ratio |
0.99 |
1.45 |
|
Quick-Assets Ratio |
0.78 |
1.29 |
Current Ratio was decreased from
1.45 to 0.99,
show Current Assets
can not cover
Current Liabilities, Liquidity
Ratio of the
company was not
good, Quick-Assets Ratio
was decreased from
1.29 to 0.78,
capacity to pay
Short Term Loan
was not good
too, because Current
Assets without Inventory
can not cover
Current Liabilities.
Leverage
|
Leverage |
2005 |
2004 |
|
D/E Ratio |
0.97 |
0.94 |
|
Times Interest Earned |
[0.33] |
4.53 |
D/E Ratio was increased from
0.94 to 0.97,
show the company
had fund from
Equity more than
fund from Loan,
investment risked of
the company is
low, Times Interest
Earned was decreased
from 4.53 to
-0.33, capacity to
pay interest paid
was not good.
Efficiency
|
Efficiency |
2005 |
2004 |
|
Fixed Assets Turnover |
1.25 |
1.22 |
|
Total Assets Turnover |
0.81 |
0.76 |
|
Return on Assets |
[0.05] |
8.31 |
|
Return on Equity |
[0.10] |
16.14 |
|
Day's Payable |
24.67 |
19.32 |
|
Day’s Inventories |
9.00 |
6.34 |
|
Day’s Receivables |
31.42 |
60.06 |
Fixed Assets Turnover
was increased from
1.22 times to
1.25 times, Total
Assets Turnover was
increased from 0.76 times
to 0.81 times,
show the company
could use Assets
so efficiently, Return
on Assets was
decreased from 8.31
to -0.05, Return
on Equity was
decreased from 16.14
to -0.10, capacity
to use Assets
to make profit
was not good.
Day's Payable was
increased from 20
days to 25
days, and Day’s
Inventories was increased
from 7 days
to 9 days,
while Day’s Receivables
was decreased from
61 days to
32 days.
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)