KSL Ventures into Laos and Cambodia with Its Sugar
Khon Kaen Sugar Industry PLC (KSL) is raking in over 300 million baht from its annual sugar sale to Laos and Cambodian in Q2/2017 as well as more income from selling electricity, catapulting it towards this year’s income growth target. It also has a positive outlook on sugar prices and is on the lookout for partners to strengthen its joint venture in the long run.
Mr. Chalush Chinthammit, Director of Khon Kaen Sugar Industry PLC (KSL), has revealed that in the second quarter of 2017, the company earned over 300 million baht in revenue from a sale of about 20,000 tons of sugar to Laos and Cambodia, an export that takes place only one a year, as well as around 1.4-1.5 billion baht from selling 50 MW electricity. These two sources of income combined are set to help the company hit its 10% income growth target from last year’s 18.4 billion baht.
The current sugar prices are 14-15 cents per pound and might drop slightly, but the company believes that they will continue to be in a decent range and not dip below that level thanks to the ongoing global undersupply of sugar. This year’s sugar prices are expected to remain within the range of 15-20 cents per pound, while the output of the 2016/2017 cane crushing season is projected to stand at 6.9 million tons. However, the cane yield is predicted to rise next year and, in turn, ratchet up the profit margin.
In addition, the company believes that its one-billion-baht ethanol production expansion project in Khon Kaen from 150,000 to 350,000 liters per day will pass the environmental impact assessment (EIA) soon and begin production by late 2018.
At the same time, KSL still continues to keep its eyes peeled for energy investment opportunities. Currently, the company owns a 50MW biomass power plant and can accommodate the generation of extra 20-30 MW. It is also equipped in terms of machinery and capital but is still waiting for further clarification from the government regarding power lines before taking further venture. In addition, the company has the opportunity to take part in a joint venture and is currently in talks with partners but has yet to reach conclusions.
Chalush adds that the company has planned to visit Singapore to provide information to investors there late this year. Currently, foreign investors hold an over 10% stake in the company in total. Earlier this year, the company held roadshows in Singapore and England.
