Thailand’s largest coal miner Banpu Plc (BANPU) today said its net profit in the first quarter of this year rose to almost 4.8 billion baht, increasing more than double from 2.1 billion baht from the same period of last year.
Chanin Vongkusolkit, chief executive officer of Banpu Plc, said in the company’s reports to the Stock Exchange of Thailand that about 3.6 billion baht of the first quarter’s net profit came from coal business while nearly 1.17 billion baht was from the company’s power business.
During the quarter, the net profit from coal business increased by 2.87 billion baht, nearly four times from the same period last year, while the net profit from power business dropped by 148 million baht, about 11 percent, from that of the first quarter last year.
The surging net profit from coal business in the first quarter this year was boosted by a rising average selling price of $84.23 per tonne, about 71 percent higher that that of the same period last year, the report said.
In addition, Banpu, which operates coal and power businesses in Indonesia and China, also saw the production cost at Indonesian coal mines decrease due to lower diesel price and the rising selling prices in China, where the company generated some 1.13 billion baht from coal business despite a 10 percent drop in sales volume to 4.08 million tones.
Chanin said the company’s sales revenue in the first quarter was about 13.6 billion baht, up by 58 percent from the same period last year, with coal sales revenue, accountable for 91 percent of total sales revenue, increasing by 64 percent to 12.3 billion baht from the same period last year.
Moreover, the sales of power and steam from the three combined heat and power plants in China were about 1.27 billion baht, accounted for nine percent of total sales revenue.
“We are expecting this year’s sales revenue to grow more than ten percent since coal sales volume from our Indonesian coal mines has increased by 13 percent from last year to 20.5 million tonnes this year and an income from coal business in China will be better as well,” said Chanin.
However, he said, the achievement of coal production and sales target at 20.5 million tonnes this year will depend on the risk in coal delivery mostly scheduled in the second half of the year.
As of 31 March 2009, Banpu’s total assets was about 88.8 billion baht, a decrease of 521 million baht from the end of last year, while its total liabilities was almost 38.7 billion baht, a 12 percent decrease or 5.4 billion baht, from the end of last year.