Eastern Water Resources Development and Management Plc (EASTW), a SET-listed supplier of raw and tap water, has
maintained its stable outlook with an A++ rating by Tris Rating Co, says the credit rating agency, citing its low business
risks.
The company is positioned as the sole supplier of raw and tap water along the Eastern Seaboard, making it difficult for other
companies to compete.
However, unpredictable weather patterns, concentrated customer base, unclear regulations on water resource
management and the company’s limited capacity to support customer demand are difficulties facing Eastern Water, Tris
said in a report released yesterday.
As a result, Eastern Water must find new water resources as changing weather patterns force the company to find areas
further away from the service area. The amount of water required will depend on approval by the Provincial Waterworks
Authority (PWA).
The PWA and the Industrial Estate Authority of Thailand, both shareholders
in Eastern Water, have accounted for 65-70% of company revenue in the past five years.
Last year, demand for raw water fell by 2.5% year-on-year in the third quarter. Ssome customers could use their own water
reserves due to heavy rainfall, while others found their own supply.
EASTW shares closed yesterday on the SET at 11.40 baht, up 10 satang, in trade worth 4.1 million baht.