East Water closes the second quarter with the raw water sale increase and profit increase as targeted. The Company prepares to move on the water business in full range
East Water revealed the turnovers for the second quarter of the year 2019 with the net profit of 609.48 million baht, increasing by 4.97%. The total revenue grew by 12.79% compared to last year. The total revenue was 2,360.75 million baht. East Water moved on with the full range of water service business in tap water, waste water treatment, and water recycling towards being the leader of integrated water management of the country. The measures were prepared to prevent and solve the problems of drought and water shortage in the future.
Mr. Jirayut Rungsrithong, CEO of Eastern Water Resources Development and Management Public Company Limited or East Water revealed the turnovers for the first 6 months of 2019.The Company had the total revenue from sales and services totally for 2,360.75 million baht, increasing by 267.68 million baht or 12.79% compared to the first 6 months of 2018. This was because of the increasing amount of the sold raw water with a net profit of 609.48 million baht, increasing by 28.85 million baht or 4.97%
The amount of raw water delivered in January – June, 2019, was at 157.23 million cubic meters, increasing by 33.66 million cubic meters in the same period of 2018 at 123.57 million cubic meters. This could be divided into customer group of industrial estates for 47%, consumer group for 26%, industrial park groups for 12%, the Company's water supply group for 10%, general factory group for 5%. The raw water sale for the first 6 months of 2019 was in the amount of 1,429.95 million baht, increasing by 244.80 million baht or 20.66% compared to the first 6 months of 2018. It was mainly due to the increasing raw water revenue from water consumption of consumer group.
In 2019, East Water still focuses on operating the business as a leader of the country in full range of water service including the services for raw water sourcing, investment services for raw water piping, management of raw water sufficiently for the needs of water users, provision of installation services for industrial water production system, control on the quality of water delivered to suit the needs of water users in each industry, provision of waterworks management services in both surface water supply system and sea water supply system using modern technology in production system. This includes maintenance work and water supply distribution system as well as providing complete engineering services, providing sewage system installation services that are appropriate for each business, outbound wastewater quality control, and the provision of recycling water system services using treated wastewater in industrial system.
In the past, East Water has provided industrial water services in the Eastern Economic Corridor Project area (EEC). There is a project to construct an industrial water production system for Amata City Industrial Estate, Rayong Province, with the goal of completing the construction of an industrial water production system by 2020 with a minimum volume of 5.5 million cubic meters per year. The construction of industrial water production systems for the Gulf Power Plant, Pluak Daeng District, Rayong Province, with the goal of construction of industrial water production systems in 2021, with an average volume of 22 million cubic meters per year.
In the past, East Water provided industrial water services in the Eastern Economic Corridor Project area (EEC). There was the project to construct an industrial water production system for Amata City Industrial Estate, Rayong Province, with the goal of completing the construction of an industrial water production system by 2020 with a minimum volume of 5.5 million cubic meters per year. The construction of industrial water production system for the Gulf Power Plant, Pluak Daeng District, Rayong Province, had the goal of construction of industrial water production system in 2021 with an average volume of 22 million cubic meters per year.
The water supply and waste water treatment system project at U-Tapao International Airport provides a full range of water supply including 20,000 cubic meters of water per day, 16,000 cubic meters of wastewater treatment, and 4,000 cubic meters of water reuse. The integrated water service project in Lakchai Industrial Estate, Mueang Yang, was for the construction of water supply system of 19,200 cubic meters per day. The construction of wastewater treatment system provides the healing power of 6,000 cubic meters per day. The waste water treatment service project was provided to Ratchaburi Glass Industry with the water and wastewater treatment services for 1,000 cubic meters per day. The wastewater treatment project was conducted for Ayutthaya Glass Industry for 3,000 cubic meters per day. In addition, there are ongoing business opportunities in providing services to areas outside the EEC.
From the weather forecast of the Meteorological Department, it was expected that in the second half of the rainy season in 2019, the rainfall will increase in August - September. It is estimated that 1-2 tropical cyclones will enter Thailand with a high chance of moving through the northern and northeastern regions. However, the total amount of rain throughout the rainy season is 5-10% below normal value. As East Water is the water management expert in the eastern region with the raw water distribution network covering the eastern coast region and measures to prevent and solve drought problems, the water is pumped from Prasae Reservoir to Khlong Yai Reservoir. Pumping of water from Prasae Reservoir to Nong Pla Lai Reservoir can increase the amount of water and maintain the balance of the reservoir through the raw water pipeline network with a length of 491.8 kilometers.
In addition, additional water from private water sources in Chonburi and Chachoengsao provinces is used. The water reserves from Bang Pakong River into Bang Phra Reservoir during August-November are coordinated with the Eastern Rain Operation Center in the east, Department of Royal Rain and Agricultural Aviation, focusing on royal rain operations, increasing the amount of water, storing, adding cost water to the main dams in the eastern region. The operation will be conducted during the months of August - October or at an appropriate time.
Regarding the increasing water demand from the development of the Eastern Economic Corridor Project and the strength of the water management business that has the only raw water pipeline network covering the eastern coastal region caused the Company to be rated by leading famous organizations such as "TRIS Rating" ranking Eastern Water Resources Development and Management Public Company Limited or East Water (EASTW) with A +. The stable outlook reflects the good margin and consistent cash flow of East Water. TRIS Rating expects East Water's revenue to grow at 5% per year during the year 2019-2021, considering the increasing water demand from the development of the Eastern Economic Corridor Project in which the company has additional investment plans in the next 3 years including the construction of a new water pipeline to develop pumping stations and enhance technology efficiency for water management development in order to become a leader in the country's integrated water management.