Banpu income flat as strong currency cancels out gains
Banpu now sees this year's revenues stuck at last year's Bt33.37 billion level instead of growing 10 per cent after the stronger baht cancelled out greater coal output.
The coal miner had fixed its growth target at the beginning of this year based on ramping up production of high-grade coal from its Trubaindo mine in Indonesia. While volume has increased, foreign sales are converted into baht at a less favourable rate than expected, CEO Chanin Vongkusolkit said last week. Revenues for the first half of this year might be disappointing as coal shipments from Bontang could end up at only 9 tonnes instead of the targeted 10.5 million tonnes due to the temporary shut-down of the company's Bontang coal terminal. But the company could accelerate production to reach its target of 21 million tonnes in the second half because it is increasing excavation capacity at its Trubaindo and Indominco mines. Banpu earned Bt1.19 billion in net profit on revenues of Bt8.16 billion in the first quarter. Siam City Securities said Banpu's net profit-growth forecast should be revised from 17 per cent to 20 per cent on rising global coal prices and contributions from its Rayong power plant. That would help net income to reach Bt6.46 billion this year. Banpu owns 50 per cent of BLCP, which started running the 1,400-megawatt coal-fired power plant at full capacity in February. Chanin said Banpu projects an average coal price of US$38 (Bt1,315) per tonne this year, up from $35.82 last year, as a result of better quality coal and higher world prices. Over the next five years, Banpu will focus on coal mines and power generation in four countries - Indonesia, China, Thailand and India. It already operates in the first three countries and is studying the outlook for providing mining services for industrial plants in India next year. Coal demand in India is rising due to its rapid economic growth and considerable thirst for electricity, Chanin said. All of Banpu's coal-mine concessions in Thailand will expire next year and it has no plans to operate new mines here. It is looking for local partners to run coal mines in India to compensate for the loss of mining revenue in Thailand. Banpu's Indonesian operation, PT Indo Tambangraya Megah, will focus on five mines in the country and expand into power generation in the future. PT Indo Tambangraya Megah's shares will start trading in Indonesia this year, after Banpu's board recently approved the listing of the subsidiary on the Jakarta Stock Exchange. Banpu will decide on its partners for the Hong Sa Lignite mine and power plant project in Laos this year, he added.
Chalida Ekvitthayavechnukul The Nation
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