The share price of BTS moved narrowly in the morning session on Thursday despite the Bangkok Metropolitan Council’s order for the Bangkok Metropolitan Administration (BMA) to pay THB 23 billion of debt in E&M to the skytrain operator, as it requires approval from the Thai cabinet to pay the debt.
The share price of BTS closed the morning session at THB 7.10.
On Wednesday, it was reported that the meeting of Bangkok Metropolitan Council (BMC) had approved the majority resolution, with 44 approved and 1 abstain, to pay the debt for electrical engineer and mechanical works (E&M) of the 2nd extension of the Bangkok Transit System Green Line (Bearing – Samut Prakan – Mo Chit – Saphan Mai – Khu Kot) in the financial amount of THB 23 billion to Bangkok Mass Transit System Public Company Limited (BTSC), a subsidiary of BTS Group Holdings Public Company Limited (SET: BTS).
Mr. Chadchart Sittipunt, Governor of Bangkok, stated that the resolution sent a good sentiment for Bangkok as it is an opportunity for the city to move forward, and the details about the payment will be proposed to the council once again on January 24, 2024. Bangkok Metropolitan Administration (BMA) will then report the details to the Ministry of Interior and the cabinet to request approval for the payment to be its first priority, as the ongoing extension contract of the BTS Green Line by the National Council for Peace and Order (NCPO) No. 3/2562 dated April 11, 2019 has not been completed.
Regarding the pending expenses for the operation and maintenance (O&M), the expenses for the 1st (On Nut – Bearing and Saphan Taksin – Bang Wa) and the 2nd (Bearing – Samut Prakan and Mo Chit – Saphan Mai – Khu Kot) extension of the BTS Green Line are currently in the consideration process of the Supreme Administrative Court. Thus, the expenses are due until the completion of the consideration process. The details of the expenses are as follows:
- The operation and maintenance expenses of BTS Green Line, 1st extension, are in a total amount of THB 2.346 billion, with the interest on principal of THB 2.199 billion.
- The operation and maintenance expenses of BTS Green Line, 2nd extension, are in a total amount of THB 9.406 billion, with the interest on principal of THB 8.786 billion.
Mr. Surapong Laoha-Unya, Executive Director of BTS Group Holdings Public Company Limited and Chief Officer of MOVE Business, stated that in the present, the E&M has been recorded in the account of outstanding debt from BMA. The payment of E&M will support the cash flow of BTS and allow the company to pay more debt, which was borrowed from financial institutes and acquired in the form of debentures to maintain the service while the company awaited for BMA to pay the debt.
