RT has announced a positive outlook for Q1/2022, continuing to secure new contracts with 9 projects, including soft soil tunnel construction, exploratory drilling, and slope protection works, totaling 1.839 billion baht. This will push the backlog for 2022 to 8.5 billion baht, with hopes for water tunnel and hydropower projects in Laos. The company is focusing on managing construction material and fuel costs amidst the ongoing COVID-19 pandemic and the Russia-Ukraine war.

Mr. Chawalit Thanomthin, CEO of Right Tunneling Public Company Limited (RT), a specialist in civil engineering and geotechnical engineering, revealed the company's business direction for Q1/2022. The company expects improved performance due to progress in completing ongoing projects on schedule, including the construction of tunnels for the double-track railway project in the northeastern region, contract 3 in Saraburi-Nakhon Ratchasima, which is 89.98% complete; the water tunnel construction project in Chiang Mai, which is 85.71% complete; the construction of the Sri Song Rak sluice gate in Loei, which is 30.37% complete; and the construction of underground electrical conduits in conjunction with the Purple Line project, which is 72.20% complete, among others.

Additionally, the company has projects that commenced construction in Q1/2022, including the water tunnel construction along the Mahasawat Canal in Bangkok and the construction of Highway No. 42 in Na Thawi, Songkhla, which will gradually recognize revenue until 2023, resulting in a current backlog of 6.05954 billion baht.

The company is also preparing to continuously take on new projects in various categories, such as soft soil tunnel construction, exploratory drilling, and slope protection works, with 4 projects already under contract and 5 awaiting contract signing, totaling 9 projects worth 1.839 billion baht. Revenue recognition will begin in Q1/2022, contributing to a target backlog of 8.5 billion baht for 2022, marking a new record high since the company's inception.

Furthermore, the company plans to participate in bids for both public and private sector projects, including large-scale tunnel construction projects. They are also in negotiations with main contractors to undertake hydropower projects in the Lao People's Democratic Republic, with clarity expected in Q4/2022.

“The company anticipates good growth this year due to increased project volume and continuous revenue recognition. We are procuring materials and specialized machinery to support diverse projects while closely monitoring construction material price trends influenced by various situations, such as the Russia-Ukraine war and the new wave of COVID-19. We are negotiating with business partners to manage risks and keep construction material and fuel costs at reasonable levels,” Mr. Chawalit added.

In terms of financial performance for 2021, the company reported total revenue of 2.492 billion baht, down from 2.861 billion baht in the previous year, a decrease of 369 million baht or 12.89%. The net profit was 42 million baht, down from 238 million baht in the previous year, a decrease of 196 million baht or 82.56%.

Additionally, the company's board of directors has approved the issuance and allocation of warrants (RT-W1) to existing shareholders at no cost, at a ratio of 5 existing common shares to 1 warrant unit. The record date for shareholders entitled to receive the warrants for the first time (RT-W1) is set for May 5, 2022, and approval will be sought at the annual general meeting of shareholders on April 25, 2022.