RT reveals its business direction for the third quarter of 2024 focusing on growth driven by a strong backlog of 7.332 billion baht. It is expected that in the second half of 2024, the company will accelerate the delivery of 5 projects and recognize revenue from ongoing projects totaling 21 projects with a combined value of approximately 2 billion baht. The company is confident in maintaining good revenue growth for the year 2024, focusing on improving work efficiency, controlling costs, and continuing to bid for public and private sector projects.-In the first half of 2024, total revenue was 1.852 billion baht with a net profit of 54 million baht.

Mr. Chavalit Thanomthin, CEO of Right Tunneling Public Company Limited (RT), a specialist in civil engineering, tunneling, and geotechnical engineering, disclosed that the business direction for the third quarter of 2024 focuses on growth through accelerating the delivery of construction projects in hand (backlog) valued at 7.332 billion baht, most of which reflect current cost prices. All projects can recognize revenue continuously until 2027.

It is anticipated that in the second half of 2024, the company will be able to deliver completed projects totaling 5, including the construction of underground electrical duct chambers in conjunction with the Yellow Line Electric Train project, the construction of underground electrical duct chambers for the local road project connecting Vibhavadi Rangsit Road and Phahonyothin Road Phase 2, the construction of underground electrical duct chambers for the Klong Krathiam substation in Min Buri district, the construction of raw water storage for the Bang Pakong power plant, and Slope Protection work on Highway 1349, Samoeng-Wat Chan section in Chiang Mai province. Additionally, the company will continuously recognize revenue from ongoing construction work totaling 21 projects valued at approximately 2 billion baht.

“The company aims to maintain revenue growth for the entire year of 2024 at a level similar to the first half of the year, focusing on improving work efficiency and managing construction costs according to plans to strengthen cash flow for operations, as well as preparing financially for future project opportunities,” Mr. Chavalit stated.

Moreover, the company plans to take on additional public and private construction projects in the second half of 2024, such as drainage tunnel work and pipe jacking for wastewater treatment systems, which will enhance revenue recognition and improve profitability.

Additionally, the company is preparing to issue long-term bonds for Right Tunneling Public Company Limited, Series 1/2024, which are registered to specific holders, non-subordinated, unsecured, and have bondholder representatives. There are two series of bonds: the first series maturing in 2026, which the issuer has the right to redeem before maturity, with a term of 2 years and a fixed interest rate of 7.25% per annum, paying interest every 3 months throughout the bond's term.

The second series matures in 2027, with the issuer having the right to redeem the bonds before maturity, with a term of 3 years and a fixed interest rate of 7.50% per annum, paying interest every 3 months throughout the bond's term, and is currently in the process of seeking approval from the Securities and Exchange Commission (SEC).

The purpose of the fundraising is to provide working capital for the company, strengthening its financial position to support future public and private construction operations that will arise from upcoming bids, and to repay the RT252A bond debt.

Regarding the performance in the first half of 2024, the company reported total revenue of 1.852 billion baht, an increase from the same period last year, which had total revenue of 1.459 billion baht, an increase of 393 million baht or an increase of 27%, with a net profit of 54 million baht, up from a net loss of 17 million baht in the same period last year.