Revenue gushes 50% for Hydrotek

Hydrotek (HYDRO), the SET-listed environmental, water treatment and waste management company, expects 50% revenue growth to 1 billion baht this year, as it is confident that in the second half it will realise more than 600 million baht in revenue.

For the first half of this year, the company booked 369 million baht in revenue.

Net profit for the first half was 22.7 million (17 satang a share), down by 15.8% year-on-year.

Chief executive Slib Soongswang, chief executive officer, said the company just won a 30-year concession to supply water for Chiang Mai municipality.

The project will generate annual revenue of 50-60 million baht starting late next year.

"The company has a backlog worth 1.5 billion baht excluding Chiang Mai municipality, with 500-600 million baht to be realised in the second half and the remainder next year," said Mr Slib, adding that net profit is expected to grow in line with revenue.

Mr Slib said the company submitted new bidding worth 1 billion baht in the second half and expects to win about half the submitted projects.

It bid for a waste water management project in a Myanmar industrial estate with an investment of 400-500 million baht. The concession winner will be announced next week.

If Hydrotek wins this project, revenue will start to be recognised in 2014.

Mr Slib said the company also entered an auction for water supply and waste water management in another industrial estate in Myanmar, with investment of 800 million to 1 billion baht.

Revenue from long-term concessions and investment projects contributes almost half of total revenue and is expected to exceed that amount in five years, he said.

"There are huge opportunities for waste management and technology in neighbouring countries," said Mr Slib.

Investment revenue will help to stabilise revenue and reduce risk from fluctuation in bidding projects.

Shares of HYDRO closed yesterday on the Stock Exchange of Thailand at 7.80 baht, up 60 satang, in trade worth 34.8 million baht.

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Writer: Darana Chudasri
Position: Business Reporter