Thai construction contractor Ch Karnchang Pcl said on Thursday it expected higher revenue this year thanks to the government’s infrastructure investments, which should help stimulate activity in the sector.
Ch Karnchang, one of Thailand’s top three firms in the sector, aimed for construction revenue of 35-38 billion baht ($998 million-$1.08 billion) in 2016 versus 34.8 billion baht in 2015, Chief Executive Officer Supamas Trivisvavet told reporters.
Total revenue could rise to as much as 40 billion baht in 2016 from 38 billion baht last year as it will book income from existing projects under development, including the Blue Line and Green Line mass transit systems, Supamas said.
After a delay, the military government is expected to open bidding for construction jobs worth about 400 billion baht in the second half of the year and Ch Karnchang aimed at winning about 20-25 percent of the projects, she said.
The new projects should help boost the company’s backlog to 200 billion baht by the end of 2016 from 83 billion baht now, she said adding the company aimed to maintain gross profit margin at 8-10 percent this year.
New projects to be opened for bidding included several mass transit lines, an expansion of Suvarnabhumi airport, motorway and dual-track railways worth combined 500 billion baht, the company said in a statement.
In March, the company signed a construction contract for a motorway project and a power substation project in Laos. It also received an additional construction work for Xayaburi hydroelectric power plant in Laos for 19 billion baht and expected to sign contract later this year, the statement said.
Source: http://af.reuters.com/article/commoditiesNews/idAFL3N17V2CV
