Egco ups US presence via stake in Compass Portfolio

Egco ups US presence via stake in Compass Portfolio

The Paju ES power plant in South Korea, one of the power generation facilities that helped Egco boost its revenue this year. (Photo: Egco)
The Paju ES power plant in South Korea, one of the power generation facilities that helped Egco boost its revenue this year. (Photo: Egco)

SET-listed Electricity Generating (Egco), the power generation arm of the state-run Electricity Generating Authority of Thailand, is going to clinch a deal to acquire a 50% stake in US-based Compass Portfolio, which has three power plants under its ownership.

This latest investment is Egco's fourth asset acquisition in the US over the past two years, said Thepparat Theppitak, president of Egco.

The company made the investment through Egco Compass II LLC, its wholly-owned subsidiary which began the purchase agreement in September.

The three gas-fired combined-cycle gas turbine (CCGT) power plants are located in the Northeast of America.

The Compass Portfolio comprises Marcus Hook Energy LP, a 912-megawatt CCGT facility located just outside of Philadelphia, along with Milford Power LLC and Dighton Power LLC, which are 205MW and 187MW CCGT facilities, respectively, located in the state of Massachusetts.

Marcus Hook, Milford and Dighton are all situated in strategic locations in close proximity to major metropolitan load centres of the cities of Philadelphia, Boston and Providence.

Mr Thepparat did not reveal the price of the asset acquisition.

"The Compass Portfolio investment will be an accretive investment which is aligned with our strategic objective for acquiring high quality power facilities that are profitable and that support global energy transition objectives," said Mr Thepparat.

Egco earlier invested in the Linden Cogen, Apex Mulligans Solar and Apex Great Pathfinder power plants, with combined electricity generation capacity of 1,273MW, based on Egco's shareholding.

Egco on Wednesday reported that its third quarter revenue rose by 13% to 13.9 billion baht and its net profit rose by 704% to 2.37 billion baht.

During the first nine months of this year, revenue dropped by 5% to 44.6 billion baht and net profit rose 99% to 5.85 billion baht.

The strong business performance was attributed to more power generation from Nam Theun 2 hydroelectric power plant in Laos and the operation of two gas-fired power plants -- Linden Cogen in the US, and Paju ES power plant in South Korea.

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