RT has revealed a positive business outlook for Q2/2023, accelerating the delivery of construction projects reflecting previous cost prices. The company has secured three new projects worth a total of 1.134 billion baht, bolstering its backlog to 10.914 billion baht. This enhances its capacity to take on soft soil tunnel projects and prepares for the development of technology to improve operational efficiency and reduce construction resource usage. The company anticipates a profitable second half of the year. In Q1/2023, total revenue was 627.34 million baht, with losses reduced by 84.22% compared to the previous quarter.

Mr. Chawalit Tanomthin, CEO of Right Tunneling Public Company Limited (RT), a specialist in civil engineering and geotechnics, stated that the business direction for Q2/2023 is expected to improve due to the acceleration of existing project deliveries that reflect old cost prices. This will be achieved by enhancing operational efficiency, managing labor, and controlling construction costs to continuously improve gross profit margins.

Additionally, the company focuses on recognizing additional revenue from new projects. In Q2/2023, RT has taken on three projects worth a total of 1.134 billion baht, including the construction of a dam head and associated buildings for the Klong Pole Water Reservoir project in Rayong, valued at 435.04 million baht; the construction of an earthen dam head and associated buildings for the Klong Aeng Water Reservoir project in Trat, with a contract value of 678.85 million baht; and the Slope Protection project on Highway 1322 from Mae Ja to Rin Luang 2 in Chiang Mai, valued at 20.55 million baht. This promotes an increase in the volume of construction work in hand. Currently, the company has a backlog of 10.914 billion baht (as of June 6, 2023), which will be gradually recognized as revenue from 2023 to 2027.

The company's construction work is divided into various categories: tunnel construction (49.80%), dam and irrigation system construction (17.48%), underground electrical conduit work (9.63%), hydropower plant construction (0.21%), and other construction works such as road construction and slope protection (22.88%).

“The company continues to focus on expanding its construction capabilities to be more diverse, leveraging existing expertise and technology, such as underground electrical conduit work and soft soil tunneling in Bangkok and surrounding areas. Furthermore, the company is committed to improving work efficiency, currently developing technology and adapting it to existing tools, which will be used alongside operations to reduce resource, energy, and labor usage while still executing projects as planned. With this operational strategy, the company believes it can achieve growth and return to profitability in the second half of the year,” Mr. Chawalit added.

For Q1/2023, the company reported total revenue of 627.34 million baht, an increase from the previous quarter's revenue of 357 million baht, representing an increase of 270.34 million baht or 75.73%. The net loss was 38.19 million baht, down from a net loss of 242 million baht in the previous quarter, a reduction of 203.81 million baht or 84.22%. This improvement is attributed to the operational plan focused on accelerating the delivery of old projects reflecting previous cost prices, better construction cost management, and easing material prices.