Message from the Chief Executive Officer
First of all, I would like to thank all shareholders who have been following SKE. As of today, SKE has been on a journey of more than 4 full years from the date of being listed on the Stock Exchange of Thailand and the path has not been strewn with flowers. Thailand and the world have faced the Covid-19 pandemic for more than 2 years. The Company has constantly adapted in terms of the organization and the business. One of the Company's key events in the year 2021 was the acceptance of proposal to terminate the contract for NGV filling at Ban Na-Kaeng Khoi Station in Saraburi Province. The Board of Directors has thoroughly considered details and resolved to approve such proposal. The details of compensation received for the remaining term of the contract had been informed and disclosed to the Stock Exchange of Thailand and relevant persons. We faced changes in NGV business, which was our core business. It was a situation of which we have anticipated, assessed, and prepared for in advance. This can be seen from the Company's revenue structure which has been changed since the year 2020. Revenue from NGV business in the year 2020 accounted for 37.79% of total revenues, and revenue from NGV business in the year 2021 accounted for 25.54% of total revenues. The decline in revenue from NGV business was compensated by revenue from the biomass power plant in the year 2020 and 2021, which accounted for 47.82% and 56.41% respectively. Over the past 4 years, the Company faced many new challenges, including strategic planning for the core business which was in a downtrend (Sunset business). The Company’s revenue from NGV business had decreased, but the Company was able to maintain the standards of management and a gross profit margin at a level of not less than 30% over the past five years. The power plant with an efficiency ratio in generation and distribution of electricity of more than 95% throughout the year 2021 has made a significant contribution to stability and sustainability of SKE during the most difficult and volatile economic and social situations around the world. Another important event in the year 2021 was the Company’s investment in 99% shareholding in N15 Technology Co., Ltd. (“N15”). N15 conducts waste disposal and waste-to-fuel business. After the acquisition, N15 signed a sale and purchase contract of RDF (Refuse derive fuel) with SCI Eco Services Company Limited (including affiliated companies) in the approximated quantity of 130,000 tons per year for a term of 4 years and the term can be renewed for another 2 years each time. The total contract value is more than Baht 1,000 million. N15 will start recognizing revenue in the first quarter of 2023 and will result in the Company’s growth according to the business plan to reach the revenue level of Baht 1 billion per year. The Company expects to generate additional profits until the profits reach the same level achieved before the listing of the Company’s shares on the Stock Exchange of Thailand. We hope that these factors will build confidence and trust to all shareholders and will result in SKE's positions being attractive to investors.
Finally, on behalf of the Executive Committee, I would like to express gratitude to our customers, shareholders, business partners and patrons from all sectors who have always given cooperation to us. In respect of business management, we commit to work with determination, clear goals, good governance and protecting the interests of all stakeholders. SKE has a business plan and always adjusts itself to keep up with present situations. We wish that you will see our intention to drive SKE towards stability and sustainability.
Mr. Chutchai Sumethchotimetha
Chairman of Executive Committee,
Chief Executive Officer