Page 44 - PSTC - One Report 2023 (EN)

Annual Report 2023 (Form 56-1 ONE REPORT)
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2) Risk of Debt Repayment Ability:
As of December 31, the company’s Interest Coverage Ratio (ICR) and Debt Service Coverage Ratio (DSCR) can be summarized as shown in the table below.
Interest coverage ratio: ICR (Cash basis) Times 5.02 0.96 1.24 Debt service coverage ratio: DSCR (Cash Basis) Times 0.22 -0.04 0.03
Note: The group of companies recorded EBITDA figures of 40.2 million baht, 43.3 million baht, and 98.6 million baht for the years 2021, 2022, and 2023, respectively.
Interest Coverage Ratio (ICR) in 2021: The company exhibited a favorable interest coverage ratio, enabling regular interest payments to shareholders, lenders, and creditors. However, in 2022 and 2023, the interest coverage ratio experienced a significant decline, impacting the company’s ability to meet interest obligations to shareholders and creditors. In 2022, initial losses stemmed from the closure phase of previous projects, where actual costs surpassed estimates, and no new projects contributed additional revenue. Consequently, previously profitable construction activities turned into losses, resulting in an immediate decline in profits and a significant reduction in pre-interest and tax profits. Subsequently, the company’s ability to cover interest payments decreased. Nonetheless, in 2023, the interest coverage ratio improved from 2022 due to heightened cash flow resulting from increased operational activities.
Debt Service Coverage Ratio (DSCR) in 2021, 2022, and 2023: The company sustained a low DSCR with a declining trend. In 2022, the DSCR decreased due to consistent interest and debt repayment obligations, negative cash flows from operations in certain years, declining EBITDA, reduced profits from construction, and asset impairment and disposals. However, starting from 2024, the company commenced commercial operations, experiencing no asset impairments or disposals, implementing strict cost control policies, and managing cash flows tightly. With higher EBITDA and cash flows from operations, along with prudent management of cash flows and pending asset sales, including power plant assets and unused office buildings expected to generate approximately 440 million baht in cash inflows, the company was confident in meeting interest and debt repayment obligations.
Item
Unit
Ended
31 December 2021 (12 months)
Ended
31 December 2022 (12 months)
Ended
31 December 2023 (12 months)
Interest coverage ratio: ICR (EBITDA Basis)
Times
0.64
0.62
0.98
Debt service coverage ratio: DSCR (EBITDA Basis)
Times
0.05
0.04
0.08