East Water is delighted over the performance in the first quarter of 2021 with net profit of 370.68 million baht
East Water is delighted over the performance in the first quarter of 2021 with net profit of 370.68 million baht from the higher sale of raw water, while the Company can control the costs well and have good administration in COVID-19 situation. The Company is ready to go forward to gain confidence in water sources and crate opportunities on complete water services.
Mr. Jirayut Rungsrithong, Chief Executive Officer of Eastern Water Resources Development and Management Public Company Limited or East Water revealed that performance for the first quarter of 2021 showed total sales and service income of 1,230.92 million baht, increased by 73.90 million baht or 6.39%, mainly due to an increase in raw water supply for consumption groups as compared to the first quarter of 2020, and the net profit was 370.68 million baht, increased by 56.19 million baht, or 17.87%.
For the first quarter of 2021, East Water's raw water sales were 794.58 million baht, increased by 83.84 million baht or 11.80% as compared to the first quarter of 2020. The income from raw water increased due to the higher amount of raw water usage from various types of customers, especially consumption groups which increased from the previous year totaling 6.70 million cubic meters or increase by 10.33%. Groups of customers can be divided into 59% of industrial estates, 28% of consumption groups, 2% of industrial parks, 9% of the water supply group of groups of companies, or 2% of general factories. Revenue from tap water sales was 361.77 million baht, decreased by 11.72 million baht or 3.14% as compared to the first quarter of 2020, while the volume of tap water sold increased by 0.46 million cubic meters or 1.90% as compared to the first quarter of 2020, mainly due to a decrease in the average selling price of tap water as compared to the previous year. The Company also earned 4.46 million baht in industrial water sales, with a total of 0.28 million cubic meters of industrial water sold.
When looking at industry directions and tendency, East Water's raw water business is likely to grow mainly due to the expansion of industrial sector. In addition, the government sector also has a policy to push Rayong, Chonburi and Chachoengsao to be center for advanced industrial production to enhance competitiveness by establishing the Eastern Economic Corridor (EEC) which ,when considering the potential of the raw water business, is considered highly ready both in investment, water source stability, and the raw water pipeline network system.
Regarding the water situation, it was found that East Water sources in Chonburi and Rayong areas were in a normal level. The amount of water in most major reservoirs was higher than the average in the past 8 years, since in the second half of 2020 there was a significant increase in rainfall from the storm that passed in Thailand, causing the amount of water in the main reservoir to change rapidly. From forecasting weather characteristics of the Meteorological Department, the total rainfall in the Eastern region will be 5% -10% higher than normal, while in July the total rainfall will be 5% lower than normal. The amount of water in main reservoirs of the Company in Chonburi and Rayong was averaged at 47% and 61% of reservoir capacity, respectively.
In the middle of the fluctuate economy and the impact of the COVID-19 pandemic that continue to spread throughout the world, the positive factors from government's policy still remains in the Eastern Economic Corridor (EEC), where East Water is a part to support for integrated water services providing, as well as managing water for the EEC Therefore, we can be confident that East Water will continue to grow with sustainability in accordance with the leader’s vision in integrated water management of the country to build water security and stability to support both current and future growth.