U City signed letter of intent (LOI) with Dubai-based master developer Nakheel Group to develop the resort.

“We expect that we will be able to finalise the investment and joint venture details of the deal within two months,” BTS Group Holdings Plc’s chairman Keeree Kanjanapas said in an interview yesterday.

U City chief executive officer Piyaporn Phanachet said the proposed deal comes under U City’s investment budget worth Bt85 billion for the domestic and overseas markets from this year till 2022.

“This is challenge for us to expand our investment overseas after we took over a major stake in Vienna House last year,” Piyaporn said.

Keeree, who is also chairman of U City, said that investment in the Deira Island resort hotel would serve as a pilot project for its investment in Dubai. The company is also interested in making other investment in Dubai with its new partner, Nakheel Group, after the deal is completed. Meanwhile, the company has also invited Nakheel to invest in Thailand, for projects that may interest the Dubai company, Keeree said.

Keeree said that the group has continued to expand its investment at home and abroad in line with the business opportunities that arise.

For BTS Group Holdings, the company also is keen in expand its investment in the country’s infrastructure projects, such as for rail systems including high-speed services, and in the Eastern Economic Corridor (EEC).

“We are confident the country’s economy keep growing and require more investment for the development of infrastructure to drive the economy forward over the long term,” Keeree said.

Nakheel chairman Ali Rashid Lootah said the company decided to singed LOI with U City Plc and Vienna House when the company saw a business opportunity to develop four- and three-star hotels in Dubai. This is part of the company’s efforts to boost tourism in Dubai, with 20 million arrivals expected in 2020, rising from 16 million last year:

“We want to expand our tourism focus from the luxury to the middle market and develop the four- and three-stars hotels on Deira Island. Vienna House chain is the best choice for us,” Lootah said after a press conference yesterday.

He added that Nakheel Group is also interested to invest to Thailand in the future, following the collaboration with U City Plc on the beachfront resort on Deira Island.

Deira Island is one of man-made islands in Dubai that has been developed by Nakheel Group with an investment budget value of over than Bt40 billion. The project will combine hotel, retail, residential, offices and other operations.

Nakheel is largest property developer

in Dubai. The company’s developments include Palm Jumeirah, The World, Deira Islands, Jumeirah Islands, Jumeirah Village, Jumeirah Park, Jumeirah Heights, The Gardens, Discovery Gardens, Al Furjan, Warsan Village, Dragon City, International City, Jebel Ali Gardens and Nad Al Sheba. Together, these span more than 15,000 hectares and provide homes for over 270,000 people. Nakheel has around 25,000 residential units under construction or in the pipeline.

“With the total value of the projects at Bt2.39 trillion, we believe that at least Bt400 billion worth of contracts will be put to open bids during the rest of this year,” said Supamas, referring to the government’s ambitious programme for infrastructure development, with many of the projects focused on the Eastern Economic Corridor. “We hope to win the bids on at least 25 per cent of the new contracts to go out under open bidding this year.”

The company’s investment budget will come from its initial cashflow and borrowings from commercial banks, as well as through a planned Bt2 billion debenture issue, she said.

“We have room to borrow loans from the banks and issue the debenture as we have a debt to equity ratio of 1.27:1. The banks’ conditions stipulate a debt to equity ratio of no more than 3:1. Our financial cost now averages 3.2 per cent. This is a challenge for our investment,” Supamas said.

The company’s plans for business expansion would see total revenue from the construction and construction materials businesses reach Bt37 billion by the end of this year. This estimate places the result as similar to last year’s.

“The net profit margin will increase from an average 7.89 per cent to 8 per cent this year. Up to 95 per cent will come from the construction business, with the rest from the operations in infrastructure, energy, and other lines,” Supamas said.

For 2017, the company reported total revenue of Bt37.73 billion, a drop of 19.75 per cent from 2016, with the construction and construction material businesses contributing Bt35.92 billion and other businesses Bt1.8 billion. Net profit of Bt1.81 billion marked a fall of 9.54 per cent from 2016.

The company has a total backlog of construction contract projects worth Bt72 billion, with 63 per cent from mass transit projects. The energy business accounts for 20 per cent and double-track rail systems 11 per cent. Motorways and other roads make up 4 per cent and the remaining 2 per cent comes from building construction.

In 2018, the government is expected to expedite several infrastructure projects worth a total of Bt2.39 trillion. These include: the MRT Purple Line – South (Tao Poon–Rat Burana) at Bt130billion; the Rama III-Dao Khanong-Western Bangkok Outer Ring expressway at Bt310 billion; the SRT Double Track Phase 2 in nine routes at more than Bt400 billion, the Bang Pa-In-Nakhon Ratchasima motorway with compensation of Bt33 billion; the Bang Yai – Kanchanaburi motorway with compensation of Bt27 billion; and the 220-kilometre high-speed train service linking Suvarnabhumi, Don Mueang and U-Tapao airports worth Bt200 billion. The latter will be procured as a public-private partnership (PPP), and CK and BEM are well prepared to join the bidding for this project, Supamas said.

Meanwhile, the company has continued to expand its investments overseas, especially in Laos and Myanmar on infrastructure and energy projects.

“We have invested in hydropower electricity in Laos and our subsidiary TTW Plc is negotiating to invest in Myanmar at up to US$12 million,” Supamas said. “We expect to conclude the deal this year.”

Supamas said that the company has continued to increase its investment in the construction and infrastructure businesses in both the domestic and overseas markets in order to drive total revenue towards sustainable growth over the long term.

“We believe that construction industry will see continued growth this year thanks to the government investment to develop the country’s infrastructure projects,” she said.

The two companies yesterday signed a Letter of Intent in what they expect will create a partnership with mutual growth and play a role in supporting the growth of the Eastern Economic Corridor (EEC).

Pongsiri Sirithorn, the CEO of Begistics Public Company said in a press release on Friday that the mutual cooperation deal will help the company to expand into a broader range of integrated service logistics, together with a service network based in the EEC.

Piyabut Charuphen, managing director of Bangkok Industrial Gas Co (BIG) added that the cooperation arrangement will significantly increase the company’s competitive advantage to develop new business regarding innovations in renewable energy.

Chief executive Priyanart Sunthornwatam said the company plans to boost production by at least 25 per cent, from 1,646 megawatts to 2,091.

Overseas production is expected to grow from 8 to 30 per cent, while power from renewable energy is targeted at 30 per cent, up from 12 per cent.

“We have set up joint ventures with many allies in Vietnam for solar farms with production of over 400 megawatts, and we are also in negotiations for factory rooftop solar panels with capacity of 70 megawatts,” she said.

BGRIM plans to invest over Bt40 billion (Bt8 billion-10 billion per year) during the next five years to build power-generating plants.

It has a target of 52 plants with total production of 2,518 megawatts by 2022.

The solar farms are expected to produce a combined 176.72 megawatts and the project requires an investment of over Bt20 billion.

Executives of TSE and FPI are confident the project will help boost income and strengthen both companies, enabling sustainable growth in the future.

Such technologies range from Artificial Intelligent (AI) to the drones, fintech, and robotics, he added.

Anant will replace outgoing CEO Paiboon Panuwattanawong on May 1 2018.

Currently Anant is CEO of CS Loxinfo (CSL), which is 80 per cent owned by Advanced Wireless Network (AWN). Earlier CSL was a subsidiary of Thaicom.

All three companies come under the Intouch Holdings group.

Anant said the picture of the new businesses will become clearer in next six months and the company will build a solid base for all of the new ventures.

He said non-satellite businesses are expected to be the main revenue sources in the next five to seven years. Currently the satellite service is still the company’s main revenue contributor.

The company is also exploring the possibility of a partnership in the emerging international projects of providing global broadband Internet service via low earth orbit satallites.

Recently Thaicom has launched a new satellite-related service, Nava digital maritime service platform, which provides broadband satellite services for ship operators, as part of the effort to seek new revenue.

Thaicom’s consolidated revenue from sales of goods and rendering of services for 2017 totalled Bt6.689 billion, a decrease of 22.6 per cent year on year, mainly due to the drop in revenues from satellite and related services. Currently Thaicom operates Thaicom 4 broadband satellite, Thaicom 5 and 6 broadcasting satellites under the concession of the Ministry of Digital Economy and Society. It also operates Thaicom 7 and 8 broadcasting satellites under the National Broadcasting and Telecommunications Commission (NBTC)’s licensing regime. Thaicom’s concession under the ministry will end in 2021.

The ministry and Thaicom have been engaged in an arbitration dispute as the ministry views that both the Thaicom 7 and 8 satellites are under its concession and should be returned. Anant said that the company and the ministry are meeting to find the best solution to the issue.

They also have discussed preparations for the end of the Thaicom satellite concession to ensure a smooth transition.

With 20 years’ experience in operating the Bongkot project, the company said it is confident that it will be able to continue in this role with competitive operating costs and thus deliver greater benefits to the country.

The company stands firm in its commitment to creating energy security for Thailand, chief executive officer Somporn Vongvuthipornchai said yesterday.

The company also will continue to seek investment opportunities in Southeast Asia and the Middle East as well as push forward the final investment decision (FID) of key pre-development projects, particularly the Mozambique Rovuma Offshore Area 1.

The project has recently secured a long-term LNG sale and purchase agreement with EDF, an integrated electricity company based in France, to supply 1.2 million tonnes of LNG per year, Somporn added.

PTTEP yesterday reported on its performance for the first quarter of 2018, with net profit of US$423 million (Bt13.381 billion), increasing by US$74 million, or 21 per cent, from US$349 million in the same period of last year.

The profit improvement was primarily due to a sustained recovery in global oil prices and effective cost management, resulting in robust operating cash flow of US$1.04 billion, cash on hand of US$5.095 billion and an earnings before interest, taxes, depreciation and amortisation (EBITDA) margin of 74 per cent.

“The company is endeavouring to strengthen its long-term growth by participating in the bidding of the expiring concessions in the Gulf of Thailand in order to maintain the continuity in supply of natural gas for the country’s energy security, and expanding the investments through merger and acquisition (M&A) and investing in new petroleum exploration blocks in productive areas,” Somporn said.

Somporn added that in the first quarter of 2018, the company generated consolidated revenues of US$1.24 billion, an increment of US$148 million from US$1.092 billion in the same quarter of the previous year.

The key factor driving the revenue increase was improved global oil prices, resulting in higher average selling prices of US$44.01 per barrel of oil equivalent (BOE) in the reporting period, compared with US$38 per BOE in the first quarter of 2017.

Rise in unit cost

However, the unit cost in the first quarter of 2018 slightly increased to US$29.20 per BOE from US$27.54 per BOE in the first quarter of last year.

The sales volume drop in the Sinphuhorm project in Thailand and the Montara field in Australia resulted in a decrease in average sales volume of 293,099 barrels of oil equivalent per day (BOED) in the first quarter of this year, lower than the 304,108 BOED recorded in the same period of 2017, the company said.

With these factors, PTTEP reported recurring net profit of US$304 million, while non-recurring net profit was at US$119 million, mainly from profits and tax benefits related to the baht’s appreciation against the US dollar.

“We have started this year with impressive operating results,” Somporn said. “In addition, we were able to expand our investments through the acquisition of more stakes in the Bongkot project, which will add immediately to our sales volume and revenues after the transaction is complete as well as the successful bidding for exploration blocks in high potential areas.”

According the spending plan, Bt40 billion will be spent to pay back the loan that will expire this year until 2022, and the rest would be spent on cashflow, the source said.