SET-listed Electricity Generating Plc (Egco), Thailand's second-largest private power producer, is in talks with several companies on future asset acquisitions, expecting to wrap up deals during the second half of 2018.
The plan is aimed at offsetting shrinking capacity after Egco diluted its entire ownership in three firms in March.
President Jakgrich Pibulpairoj said Egco is seeking various business types, including fossil-based and renewable power plants.
"The future deals will not create any financial or liquidity burden for Egco, because it has a readiness of its cash on hand and a capability to obtain additional loans from banks," Mr Jakgrich said.
Egco has cash on hand of 5.6 billion baht and US$900 million. Some of the cash came from the dilution of its entire ownership of two power plants and one water management asset and combined gains came to 14.162 billion baht.
The three companies were Eastern Water Resources Development and Management Plc, GIDEC Co and Masinloc Power Plant Co in the Philippines.
Egco expects capital expenditure during the second half of 2018 of 12 billion baht for its three ongoing power plants in Laos and the Philippines, which are to be constructed over the next four years.
Three new operations will add to Egco's capacity, calculated based on ownership, at a combined 544 megawatts.
Those projects include two hydropower plants in Laos' Xayaburi at 1,280MW and in Laos' Bolikhamxay at 650MW. Egco holds stakes of 12.5% and 25% respectively and projects commercial operation dates (CODs) in 2022.
Another is the 500MW Sanbuenaventura Power Plant, a coal-fired operation in the Philippines' Quezon with COD scheduled next year.
Egco also has two power projects abroad. One is the Quang Tri coal-fired project in Vietnam where is preparing for negotiations on master contracts such as a power purchase agreement with Vietnam Electricity (EVN). The other plant is the Pak Beng hydropower project in Laos, but Egco has to wait for clear signs from energy policymakers for the development and purchase of electricity from that plant.
Mr Jakgrich said Egco has also offered policymakers a plan to develop new power generation capacity of 800MW.
Egco has sufficient land plots for the new unit and expects a shorter time frame for the construction because it is adjacent to the gas-fired Khanom Electricity Generating Co, which has capacity of 930MW, in Nakhon Sri Thammarat.
"Once Egco receives the green light from the policymakers, the project can be developed and operated within four years," Mr Jakgrich said. "We also advised the policymakers our concern that the power supply in the southern region is already low, compared to overall demand while the policymakers have to bring in electricity from the central region."
Egco reported net profit of 17.81 billion baht in the first half, up 174% year-on-year.
But in the second quarter, Egco posted a 2.36-billion-baht net loss, mainly due to a foreign exchange impact of $1.3 billion.
Egco continues to seek investment opportunities for the power business which is its core area of expertise and it also targets asset acquisitions, Mr Jakgrich said.