Energy Absolute PCL (SET: EA), one of Thailand’s leading renewable energy businesses, today (28 January 2025) announced that its recovery plan has received a major boost from the overwhelming success of a rights offering to shareholders that was conducted during 17-23 January 2025. The rights offering has been heavily oversubscribed and raised Bht 7,426 million in capital.
Mr. Chatrapon Sripratum, Chief Executive Officer, Energy Absolute PCL, said, “This fresh capital from our shareholders is a strong vote of confidence in the success of the rigorous restructuring that we have been conducting in the last few months and which has stabilised the business and restored a solid foundation for future growth. These funds will be used, primarily, to reduce our debt and increase our creditworthiness, as well as invest in some ongoing projects to allow us to move quickly to the next phase of our recovery plan.”
As part of its recovery plan, EA disclosed that it was focusing on its very profitable businesses, namely, the production of biofuels, electricity generation from wind and solar energy, and the operation of Thailand’s only electric vehicle charging business that has a positive cashflow. These businesses, together, contribute around sixty percent of EA revenues. EA has paused or scaled down two money-losing business units, being its electric commercial vehicle manufacturing operation and its battery manufacturing operation, while it restructures them. The restructuring involves seeking partnerships with large international players that can make each business globally more competitive as well as help them penetrate markets outside of Thailand.
Mr. Sripratum said, “We are on track to begin in April 2025 the assembly of electric special vehicles at our Chachoengsao plant in partnership with one of China’s largest special vehicle manufacturers (Chengli Special Automobile Co., Ltd.). We will be the first to assemble in Thailand in large quantities such special electric vehicles as ambulances, garbage trucks and other specialised vehicles. We are also advancing our negotiations for a joint venture with a Chinese company to be the first large facility in Thailand to manufacture lithium-ion batteries with a production capacity to four gigawatts.”
According to EA’s latest disclosures, its operating cashflow for the first nine months of 2024 is at a strong positive Bht 5,610 million, improving from a negative Bht 1,726 million for the same period last year, and at almost three times greater than where it stood in the previous year.
