DEMCO aims for 2023 revenue growth of 10-20% after gradually recognizing a backlog of over 2,786 million baht, applying for new projects of 2-3 billion baht, preparing 4 government renewable energy projects, another 173MW , and met with NUSA executives shortly afterwards. join Become a shareholder with a larger share of 23%
Mr Pongsak Sirikupt, Chief Executive Officer of Demco Public Company Limited (DEMCO), revealed at the “Opportunity Day” event that the company is aiming for 2023 revenue to grow by around 10-20% from this year because the company has jobs in hand on now. (backlog) of over 2,786 million baht which will be recognized gradually next year
In addition, there will be applications for new projects from the Electricity Generating Authority of Thailand (EGAT) and the Provincial Electricity Authority (PEA) to sign additional contracts of approximately 2,000-3,000 million baht, including the large project already achieved the site and the contract is signed. So, it is expected that the results will definitely come out better than this year.
The company has prepared an investment budget for next year of approximately 50 million baht, which will be used to support the investment in the Solar Rooftop installation project in the amount of 10 megawatts (MW) after the company aims to install the Solar Rooftop to 20 MW by 2023. Installation of 5 MW has been completed and the rest is in progress.
Although the company still plans to participate in applications for electricity purchase projects from government renewable energy with a total capacity of 5,203 MW in 4 projects, divided into solar power plants. 90 MW and 66 MW SPP solar farms, 8 MW VSPP power plants, and 9 MW biomass power plants.
Regarding the earnings trend in the fourth quarter of 2022, it is expected to grow better than in the 3rd quarter of 2022 because revenue from construction projects will start to be deferred from the 1st-2nd quarter of this year. This year’s performance is expected to be similar to last year. Even down from the expected growth of 10% because the company is affected by construction designs and delays in the delivery of major projects.
In addition, if Nusasiri Public Company Limited or NUSA said it buys 23% of DEMCO’s major shares of the total voting rights of the business, resulting in NUSA becoming the main shareholder. Initially, it is expected that a meeting between the management team of DEMCO and NUSA will be held soon. Initially, DEMCO confirmed to the SET that this major shareholder change does not affect the company’s management and policies.
