The International Engineering Public Company Limited or IEC announced its operating at year-end results in 2015. The company had a net profit of 0.14 million baht; compared to year-end results in 2014 the net profit has declined about 13.27 million baht from the consolidated statement. However, year-end 2015 operating results which only the company has accumulated profit about 25.91 million bath increasing from the first the year-end 2014 about 3.58 million baht.
The significant reasons that the operating results are lower than expected as followed;
1) The Company has the temporary closure of two power plants in Hat Yai and Sa Kaeo, in order to improve the efficiency of power generation.
1.1 The waste to energy at Hat Yai (GIDEC) is able to increase the production of electricity from 4.3 megawatts to 5.4 megawatts, so even if power is lost revenue during the shutdown of power plants for a period of time, about 20 days, but the company was compensated from increasing in sales of electricity from 600,000 baht to 800,000 baht per day.
1.2 As for the biomass power plant in Sa Kaeo, it is necessary to stop for major repairs for two months last year to replace the steam generation efficiency in electricity production which will increase an average income about 600,000 baht per day.
The company had been struggled with rising costs of fuel burned in the past which is the average price of 1,200 baht per ton. This is considered as the major cost of the power plant. Therefore, the Company has made adjustments to use RDF (Refuse Derived Fuel) which is cheaper by about one in third of the original fuel price. (The modified cost will calculate about 700 baht per ton.) This is the reason of temporarily shutting down the biomass power plant in Sa Kaeo province.
However, the government is considering changing the adder price of 3.73 baht per unit in the current system to FiT (Feed-In-Tariff) system which, when combined Ft Premium of another 0.30 baht, as a result a selling price of electricity will be at 4.74 baht per unit. This will result the sales revenue will raise about 13 percent.
2) The Company and its subsidiaries has increasingly cost of sales and administration. An increasing amount of 72.95 million, representing 33.65 percent of the consequential costs of personnel, which increased from subsidiaries expansion and expenses occurred during the temporarily shut down to improve the power plants production.
However, the Rayong waste recycling plastic plant is in the progress of obtaining the Ror Ngor. 4 certificate from Ministry of Industry. It is expected to acquire the license within 15 days which, as a result, will sell the plastic pellet produced in the warehouse for distribution to customers who sign contracts, MOU, both domestic and foreign companies on January 8 previously. The orders are totaling more than 130 million baht.
Source: IEC investor relations
01/03/2016