Ch. Karnchang Plc (CK) is confident of strong 2016 performance as the Q3 performance showed a significant increase of 48.33% in its construction revenue compared to the same period last year. Following the outstanding financial performance, CK also won three new contracts for the Orange Line train project, boosting its total backlog to reach Bt100 billion.
Plew Trivisavavet, Chairman of the Board of Ch Karnchang Plc (CK), said that despite slow economic development, CK posted a very strong financial and operating performance in Q3/2016. The company was confident of achieving its 2016 target of Bt42 billion –Bt45 billion construction revenue, representing 8-10 per cent gross profit. In Q3/2016, the company’s construction revenue was as high as Bt38,212 million, an increase of Bt12,450 or 48.33 per cent higher than the same period last year. The strong performance is contributed by the income recognition from addition work from Xayaburi in Q2/2016.
The past year is also another golden time for the company considering its continuous success in existing projects. Among them is the handover of the Sanam Chai Station of the Blue Line Extension project which has gained so much reputation and public interest in its unique Thai architectural style. Most recently, the company won three contracts for the construction of the Orange Line, which will add another Bt29,901 million to its book, bringing its backlog value to reach Bt100 billion.
In 2016, the company also restructured its subsidiaries to form Bangkok Expressway and Metro Public Company Limited (BEM), providing the company group with greater flexibility, efficiency and financial strength. The company is more than ready to expand its investment in future infrastructure projects.
Winning 3 contracts for the Orange Line
On 9th December 2016, CKST consortium, comprising CH Karnchang and Sino-Thai Engineering and Construction who formed this 60:40 partnership, won the bidding for the Orange Line – Cultural Centre-Minburi. The consortium tendered the lowest price for the construction work in 2 contracts. Contract 1 includes the underground tunnel (Thailand Cultural Center-Ramkhamhaeng 12), 6.29 kilometres. The consortium proposed Bt20,698 million which is Bt37 million lower the reference price of Bt20,735 million. Contract 2 includes the underground tunnel (Ramkhamhaeng 12- Hua mak), 3.44 kilometres. CKST offered the lowest price of Bt21,572 million, which is Bt32 million lower than the Bt21,604 reference price. The company also won the Contract 5 for the parking building and maintenance center construction. The consortium proposed the best price of Bt4,901 million, which is Bt14 million lower than the reference budget of Bt4,915 million. This will also add Bt28,000 investment to its portfolio.
In these contracts, CK will be the main party responsible for the construction work due to its vast experience in tunnel and underground construction work.
Strong Q3 performance
Supamas Trivisvavet, Chief Executive Officer of Ch Karnchang Plc (CK), noted that the company successfully maintained its capability to generate high income and profitability. At the end of the quarter 3, the company posted Bt38,985 million income and Bt1,689 million profit. This includes Bt38,212 million construction income, an increase of Bt12,450 million or 48.33 per cent compared to the same period in 2015. The strong performance is credited mainly to its ability to control and make good progress of all projects.
In addition, CK has also won and signed new contract in 2016, totaling Bt24,323 million, including
Another contracts will be signed soon, including electric train equipment supply and installation for the Bang Yai-Ratburana Purple Line’s Bang Yai-Bang Sue part worth Bt25,000 million and the construction of the Bang Pin-Saraburi-Nakhon Ratchasima Contract 4 worth Bt1,982 million.
Ready for 2017; target set at Bt35 billion minimum
Looking ahead, CK sets a target for its minimum construction revenue for 2017 at Bt35 billion. At present, the total projects on hand which are waiting for income recognition totaled Bt71,287 million. Even with this huge backlog, the company is more than ready to participate in new bidding for major construction projects. They include the Orange Line’s Taling Chan-Cultural Center section, the Purple Line’s Taopoon-Ratchaburana part, and dual track train. All of them valued nearly Bt340 billion. CK expected approximately 20-25 per cent of the total construction projects to be launched in the future.
“We are more than ready considering our experienced engineers, advanced engineering and construction technology, project management and financial capability to invest in high potential projects that will bring great benefits to the country and its economy. We have the ability and access to many business partners to create strategic synergy. We have an effective risk management plan, such as risk distribution through regional investment,” said Supamas.
