EGCO Group regains profitability in 2024 with net profit increase over THB 13 billion, compared to the previous year - Propose a second-half dividend of 3.25 baht per share, totaling 6.50 baht per share for the entire year
Electricity Generating Public Company Limited or EGCO Group has announced strong financial performance for 2024, with an operating profit of THB 9,283 million, reflecting a 6% increase, and a net profit of THB 5,412 million, a rise of THB 13,796 million or 165% compared to 2023. This growth is attributed to the improved performance of its large-scale overseas power plants. Given this robust financial performance, EGCO Group will propose to the shareholders' annual general meeting for the approval of a dividend payment for the second half of 2024 of THB 3.25 per share, bringing the total annual dividend per share to THB 6.50. This represents an approximately 6% dividend yield.
Dr. Jiraporn Sirikum, President of EGCO Group, stated that in 2024, the company has achieved greater efficiency in managing power plant operations, fuel costs, financial costs, and assets across all the countries in which it operates. As a result, EGCO Group has recognized a gross revenue of THB 46,341 million. The company also posted an operating profit of THB 9,283 million, marking an increase of 6%, and reported a net profit of THB 5,412 million, an increase of THB 13,796 million or 165% compared to the previous year. This improved performance was driven by the expanding operations of large-scale overseas power plants, including the Yunlin offshore wind farm in Taiwan, which recognized greater electricity sales from connecting more wind turbines to the grid and currently operates a full 80 wind turbines with a total capacity of 640 MW; the Quezon power plant in the Philippines, which saw an increase in electricity sales; and the Nam Thuen 2 hydropower plant in Lao PDR, which experienced higher electricity sales. Another key contributor was APEX, a large-scale renewable energy project developer in the USA, which recognized higher project sales. EGCO Group also earned revenue following its acquisition of a 50% stake in the Compass Portfolio in the USA on 9 January 2024.
Considering the company's healthy business foundation based on high reliability of cash flows, EGCO Group has capability to consistently pay dividend. Additionally, EGCO Group is strongly committed to consistent dividend payment to shareholders as a dividend stock with a continuous yield. The Board of Directors resolved at its meeting on 28 February 2025 to seek approval from the 2025 shareholders' annual general meeting (AGM) to pay a dividend for the second half of 2024 of THB 3.25 per share. After the approval during AGM which is scheduled on 11 April 2025, EGCO Group's total dividend payment for the entire year of 2024 will be THB 6.50 per share representing a dividend yield of approximately 6%. The dividend payment date is set for 23 April 2025.
"Looking ahead to 2025, EGCO Group will follow its "Triple P" strategy, with three key strengthening objectives: steering EGCO Group towards sustainable profitability, achieving sustainability targets, and transforming the organization for future growth. The company's investments will focus on its core business of electricity generation, including gas-fired power plants and renewable energy plants, with a target of achieving Net Zero Carbon. EGCO Group plans to invest through both mergers and acquisitions (M&A) and greenfield projects, while also seeking new opportunities in energy-related businesses. Key markets will be those where EGCO Group already operates, particularly the USA, one of the largest power and energy markets globally, where the company has made consistent investments over the past five years and become one of its key business bases. Currently, EGCO Group is negotiating 4-5 gas-fired and renewable power projects, both in Thailand and internationally, with a total capacity of over 1,000 MW. These negotiations are expected to reach a resolution by the second quarter of this year," according to Dr. Jiraporn.