The SET-listed industrial land and power plant developer MDX Plc expects its revenue to stay on par with last year on hopes of an improved industrial sector in the second half.
The company can equal the 650 million baht revenue it recorded last year,but maintaining profit at 125 million baht would be difficult, said chairman Pracha Hetrakun.
MDX recorded a first-half net loss of 47 million baht due mainly to the decline in industrial estate demand.
"Another main reason [for losses] is the delay in our negotiations to sell power from the Nam Ngum 3 power plant to the Electricity Generating Authority of Thailand (Egat)," he said.
"Demand for power has decreased in line with the economic slowdown and this caused the delay of the deal, we have no idea when [the deal] will reach an agreement. This delay has an impact on our expected income."
Land sales at its Gateway City Industrial estate have fallen in the global slump.
Gateway City may only sell 20 rai of industrial land in Chachoengsao this year. It currently has 1,000 rai of undeveloped land and about 500 to 600 rai of developed land at the project.
However, it expects utilities income to increase in the second half as existing factories are expected to increase their capacity as global demand improves.
MDX also hopes to earn income from its 350-megawatt power plant in Samut Prakan's Bang Bo district.
The company is now expanding capacity at the Nam Theun-Hinboun hydro-power plant in Laos to 500 MW from 210 MW. The $500 million investment project is expected to completed in 2012.
Mr Pracha said no new investment was planned because of the downturn.
With new investment expected to remain low, affecting future earnings from its industrial estate business, MDX is considering a heavier focus on energy,which has bigger margins.
Shares of MDX closed yesterday on the SET at 1.28 baht, down four satang,in trade worth 7.26 million baht.
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