PDI expects its 2017 performance will improve significantly from 2016 on the back of rising global zinc price and the higher revenue realization from solar farm projects. The company is ready to invest more in new businesses.

Real Estate Press Releases Wednesday March 8, 2017 12:20
Bangkok--8 Mar--IR network

PDI also projects to grow its solar farm business locally and abroad to exceed 150 megawatts over the next three years. It will move forward to do high added-value materials for recycling and industrial waste management businesses in the coming years.

Mr. Francis Vanbellen, managing director of Padaeng Industry Plc (PDI), noted the company's 2017 financial performance is expected to rise from 2016, which posted a net profit of 478 million baht, the highest in the past five years and surging 216% or 327 million baht from 151 million baht net profit in 2015.

This year, PDI will realize major revenue from its core zinc business at 90% as it has low-cost zinc ores from the Mae Sot mine more than 25,000 tons and will import zinc ores for another 35,000 tones to serve rising demand from local customers. Meanwhile, global zinc price will continue to hike this year from xxxx dollar/ton as of Mar 6, 2017. If the zinc price continues to rise, it will eventually benefit the PDI performance this year.

Moreover, the company expects to generate the remaining 10% revenue from its new alternative energy business including its first solar power plant in Japan with the 2.27 megawatt capacity, which started commercial operation since Oct 3, 2016, and the 5.25-megawatt Mae Ramat Solar Farm in Tak province, which was acquired in late 2016.

Besides, PDI will start booking additional revenue from two new solar power plants in Japan including the 10.53-megawatt Nogata Solar Farm and the 2.2-megawatt Ryoshiya Solar Farm, which are due to start commercial operation in the second and third quarter, respectively.

"In 2016, PDI will continue to make more investment in three new businesses including energy, materials and environmental management," Mr Vanbellen said.

Currently, the company's alternative energy business is well progressed after it has plans to invest more in solar farm projects in Thailand and abroad with combined capacity of 150 megawatts in the next three years. It will require an investment of 2.3 billion baht, of which 600 million baht will come from PDI's funds.

For the material business, the joint venture PDI-CRT in Rayong will produce high added-value materials made from recycled resources. The project is now under the process of factory design and initial engineering work, which is due to finish by the middle of this year, and then the construction will begin and due to start commercial operation in early 2019. This joint venture project got supports from the Department of Industrial Works since April 19, 2016.

For the environmental management business, PDI has the ongoing PDI Tak Eco project, which is the joint venture with Dowa Eco System Co. The project is now in the permission-seeking process to operate the full-integrated industrial waste management operation in Tak province with the annual capacity of 50,000 tons of industrial waste for the North and Central region in Thailand. This industrial waste management project also got supports from the Department of Industrial Works as it is in line with the country's strategic policy in handling industrial waste.

"PDI is confident that our projects in three new businesses will be successfully as expected and all of them will start commercial operation within 2019, which will mark the company's new business chapter and build strength and sustainable growth in long term," Mr Vanbellen said.

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