East Water revealed in the first half of the year, the raw water sales rushed. The demand of the industrial estates in the EEC continually increased.
East Water revealed that the sales volume of 2019 in the first half of the year increased more than 2018 due to the continually increasing water demand of industrial estates in the EEC area. TRIS Rating still maintained the company rating of East Water (EASTW) at the A + level reflecting the strength of the Company in being the country's full water management leader.
Mr. Jirayut Rungsrithong, CEO of Eastern Water Resources Development and Management Public Company Limited or East Water announced the operating results for the first quarter of 2019 that the Company had total sales and service revenue of 1,164.83. Million baht increasing by 119.44 million baht or 11.43% compared to the first quarter of 2018. This was resulted from the increasing amount of raw water sold and had the net profit of 341.71 million baht increasing by 39.04 million baht or 12.90%.
For the volume of raw water supply in January-May 2019, it was 132.77 million cubic meters. From January - May 2018, it was 102.97 million cubic meters increasing by 29.8 million cubic meters. The customers could be divided into 49% industrial estates, 24% consumer groups, 12% industrial park groups, 10% company water supply group, 5% general factory group. The Company aimed to supply raw water in 2019 at 300 million cubic meters. From the year 2018 at 250 million cubic meters, the increase was 50 million cubic meters. The volume of raw water sales increased during the first half of the year due to the increasing demand for water from consumer groups.
Moreover, the Company had been ranked by the leading credit rating organization "TRIS Rating" ranking Eastern Water Resources Development and Management Public Company Limited or East Water (EASTW) at the A + rating with a stable outlook. This reflected the strong position of the water management business with raw water pipelines covering the area solely in the eastern coastal area. The increasing water demand from the development of the Eastern Economic Corridor Project revealed good profit margins and consistent cash flow. However, there were still some limitations on climate change and the new Water Resources Act
The solid business foundation was resulted from the fact that the Company was the only raw water provider in the Eastern Seaboard. The demand for water in the eastern region is continuously increasing due to the development of the Eastern Economic Corridor (EEC) Project. The expected demand for raw water, industrial water, and integrated water management will increase in the future both projects under construction such as industrial water trading project with Gulf PD Company Limited and Amata Water Company Limited and the projects that are in progress and recognize revenue such as the Recycle Water Project with Ratchaburi Glass Industries Co., Ltd. There is also continually finding business opportunities in providing services to areas outside the EEC.
TRIS Rating predicted that the revenue of East Water would grow at 5% per year during the year 2019-2021 considering the increasing water demand from the Eastern Economic Corridor (EEC) Project. The Company planned to invest more in the next 3 years including the construction of new water pipelines, development of pumping stations, and enhancement of technology efficiency for water management development to move forward to become the leader in the country's complete water management.