The share price of Energy Absolute Public Company Limited (SET: EA) hit the floor limit on Tuesday after the Stock Exchange of Thailand lifted the suspension on the securities, following a clarification from the company on its current financial situation.
Concerns in the market rose despite clarification from EA to the Thai stock exchange yesterday as investors were selling stocks in fear of further unfortunate incidents.
EA disclosed that at the end of March 2024, the company had principal debt due within 2024 in the amount of 19,505 million Baht, including;
- Short-term loans from financial institutions and short-term bills of exchange, amounting to 8,354 million Baht, which were paid during April-June 2024 in the amount of 210 million Baht.
- Long-term loans from financial institutions that are due within 1 year, amounting to 5,659 million Baht, which were paid during April-June 2024 in the amount of 2,807 million Baht.
- Debentures due within 1 year, amounting to 5,492 million Baht.
With the amount paid during April-June 2024, the company remained in debt due within 2024 of 16,488 million Baht.
Meanwhile, since March 2024 until now, the company has not incurred any additional long-term liabilities.
The company intends to roll over short-term loans as previously practiced for all short-term loans and plans to repay long-term loans and debentures maturing in 2024 with;
- Cash flow from operations, in which, in the 1st quarter of 2024, the company had an operating cash flow of 1,900 million Baht and will have revenue from the solar and wind power plants every month of approximately 1,000 million Baht
- The loan limit from financial institutions, approximately 6,000 million Baht, currently being in the final stage of consideration by financial institutions
- The additional debentures to be issued in 2024, with the number and offering dates being under negotiation with the underwriters and expected to be 1 to 3 years debentures
EA added that the company received information from TRIS Rating that the company has been downgraded from BBB+ (Negative) to BB+ (Negative), which may affect the loan limit from financial institutions and new debentures to be issued as originally planned.
However, EA still has revenue from power plants of approximately 1,000 million Baht per month, which is the main cash flow for the company.
In addition, the company is in the process of negotiating and considering the selection of strategic partner(s) to invest in building financial strength, increasing debt repayment potential, and developing a sustainable business in the long term.
Regarding the impact on the company’s management in the event that Mr. Somphote Ahunai (Chief Executive Officer) and Mr. Amorn Sapthaweekul (Chief Financial Officer), responsible for important management positions, left those positions, the matter does not significantly affect the company’s business operations and policies, as the management team remains the same.
The company has appointed Mr. Somchainuk Engtrakul, a person with experience and credibility who can build confidence among the company’s stakeholders and determine the strategic direction to help the company navigate through the crisis, as acting Chief Executive Officer, and Mr. Vasu Klomkliang, an expert in finance and investment and a former commercial bank executive who has extensive experience with the company’s business and possesses the necessary skills, knowledge, and capability to manage related tasks, having been in this field for over 10 years, as acting Chief Financial Officer.
