Energy Absolute, a prominent Thai renewable energy firm, faces a critical juncture as its newly appointed CEO, Somchainuk Engtrakul, vows to stabilize amidst financial and governance challenges. The company, once likened to Tesla by Bloomberg, has been embroiled in controversy following allegations of fraud involving former executives.
Somchainuk reassured stakeholders that despite debts totaling 8.7 billion baht, accrued from financial institutions and debentures, the firm’s solar and wind energy operations will generate sufficient cash flow for repayment. He emphasized the restructured leadership’s commitment to operational efficiency and growth.
Former CEO Somphote Ahunai and key executives resigned amid accusations by Thailand’s Securities and Exchange Commission (SEC) of fraudulent procurement practices. This has prompted investigations by the Department of Special Investigation and the Anti-Money Laundering Office.
The Stock Exchange of Thailand (SET) has reacted by removing Energy Absolute from its ESG Ratings list due to governance concerns, effective July 15, 2024. Despite turmoil, Somphote expressed confidence in the company’s assets and operational profitability, citing monthly electricity revenues of 1 billion baht.
New leadership, including CEO Somchainuk and additional directors, aims to steer Energy Absolute through this crisis. The company, founded in 2006 as Suntech Palm Oil Co., Ltd., has diversified into biodiesel, lithium-ion batteries, electric vehicles, and waste-to-energy sectors.
