RT reveals a positive business outlook for Q2/2022 as it continues to secure construction projects, boosting its backlog to exceed the target of 8.5 billion baht. The company is anticipating new projects, including the dual-track railway project from Denchai to Chiang Rai and the hydropower plant in Laos, while focusing on cost management strategies. The recovery of the labor force is expected to accelerate project completion on schedule.

Mr. Chawalit Thanomthin, CEO of Right Tunneling Public Company Limited (RT), a specialist in civil engineering and geotechnics, stated that the business direction for Q2/2022 is expected to improve due to the continuous volume of work. The company has contracts pending signing for two projects involving pipe jacking and raw water reservoir construction, totaling 764.88 million baht.

The company has already signed contracts for three projects, including water tunnel construction, slope protection work, and most recently, the dual-track railway project from Denchai to Chiang Rai, with a contract value of 2,349.22 million baht for the railway tunnel construction segment from Denchai to Ngao. The construction is expected to commence in Q3/2022, with revenue recognition anticipated within 2022. Additionally, the company has opportunities to secure further contracts related to this project.

For international projects, the company is constructing the water diversion tunnel project at the Duantri Dam in Battambang, Cambodia, valued at 234.25 million baht, which is expected to be completed and delivered in Q4/2022. The company also plans to engage in hydropower projects in the Lao People's Democratic Republic and is currently in negotiations with the main contractor, with clarity expected in Q4/2022. All these projects will contribute to a backlog exceeding the target of 8.5 billion baht, with revenue recognition anticipated between 2022 and 2024.

The company's construction work is divided into various categories: tunnel construction (42.73%), dam and irrigation system construction (32.52%), underground electrical conduit construction (14.92%), and other construction works, such as road construction and slope protection (9.83%).

“Recently, the company has passed its lowest point due to various factors that delayed construction operations. Currently, the labor situation is improving, allowing workers to return to the sites and resume construction. However, the company remains focused on bidding for both public and private sector projects to increase revenue opportunities and achieve its backlog targets. At the same time, the company is monitoring the fluctuating prices of construction materials and fuel, closely following its project management strategy to ensure progress and timely project delivery,” Mr. Chawalit stated.

In Q1/2022, the company reported total revenue of 503.69 million baht, a decrease from 735.52 million baht in the same period last year, reflecting a drop of 231.83 million baht or 31.52%. The company also recorded a net loss of 25.32 million baht, down from a net profit of 37.25 million baht in the previous year, representing a decline of 167.97%.