SET-listed coal miner Banpu Plc posted a net profit of US$41 million (1.42 billion baht) in the first quarter of this year, reversing a net loss of $5.2 million in the same period last year, due to rising coal prices and increasing revenue from the power business.
Somruedee: Sales revenue of $633m
President and chief executive Somruedee Chaimongkol said the company had total sales revenue of $633 million, an increase of $81 million from the same period last year, pushing up its earnings before interest, tax, depreciation and amortisation by 93% year-on-year.
Ms Somruedee said the rise in profit was due largely to rising coal prices.
Total coal sales in the first quarter came to $566 million, contributing 89% of total sales revenue, while sales of power and steam generated $60 million, 9% of the revenue. Banpu's two shale gas sources in Pennsylvania in the US generated $7 million, 1% of total sales revenue.
Banpu expanded its investment in shale gas in the US and aims to strengthen its midstream business strategy in coal trading as well as continuously look for opportunities to become a leading Asia-Pacific energy provider.
"An increase in the average selling price of coal has resulted in higher sales revenue, which was previously affected by a seasonal drop in demand for coal in Indonesia and the move of longwall machinery at mine sites in Australia," said Ms Somruedee.
Banpu received additional revenue from the second shale gas resource in Northeast Pennsylvania, in which it invested earlier this year, and from an increase in power-generating capacity of the three units of the Lao Hongsa power plant, of which it owns 40%.
In the upstream business, Banpu said it would keep the high productivity level of existing coal mines and strictly control their costs while seeking new opportunities for growth, with a focus on value-added businesses.
For midstream, Banpu would improve administration and management in coal trading.
Meanwhile, Banpu's power and utilities arm Banpu Power Plc posted a flat profit in the first quarter as rising revenue from power projects in China and Japan was pared by currency exchange losses.
President and chief executive Voravudhi Linananda said the company had total revenue of 1.93 billion baht in the quarter, up 11% from the same period last year when it had total revenue of 1.7 billion baht.
Net profit stood at 1.1 billion baht, unchanged from last year.
BANPU shares closed yesterday on the SET at 17.80 baht, down 30 satang, in trade worth 855 million baht.