Banpu Plc, Asean's leading coal miner, expects flat revenue growth this year from 117 billion baht in 2012 despite a surge in sales volume as coal prices continue to dip.
Somruedee Chaimongkol, the chief financial officer, said Banpu expects to sell 48 million tonnes of coal this year, up from 43.8 million in 2012, as Indonesian mines pump 2 million more tonnes of coal, with another 2 million from Chinese operations. Centennial Coal in Australia will maintain production at nearly 15 million tonnes.
Meanwhile, Banpu's average selling price is expected to decline by US$10 per tonne for Indonesian coal to $80 this year while Australian coal slips $2-3 per tonne from $76.
"As a result, Banpu's revenue is likely to be flat this year," Ms Somruedee told a briefing at the Stock Exchange of Thailand (SET) yesterday.
Global coal prices should expect a rebound from next quarter onwards, staying in a range of $95-100 per tonne for all of 2013 compared with $96.50 last year, she said. Prices now average $95.
Ms Somruedee attributed the price slump to a supply glut, though demand continues to surge mainly from the Asian market. China plans to import 30 million tonnes more coal this year for a total of 170 million, while India's demand is projected to surge by 10 million tonnes per annum from 2013-15.
Globally, coal demand is approaching 900 million tonnes this year, up by 37 million from 2012. Supply is projected to grow by 3-4% next year with demand rising 4%, prompting a stable coal price unless there is a disruption or severe weather occurs, she said.
Banpu estimates this year's capital expenditure will be $270 million, up from $207 million last year as few short-term investments have been postponed.
Centennial's Newstan project has been postponed by one to two years until 2016-17, while investments for a Mongolian operation have been halved to $200 million, with a small amount allocated for 2013.
Banpu earlier slashed planned capital expenditures for 2012-15 from $1.7 billion to $1.25 billion, of which $425 million is allocated for Australian operations and $245 million for Indonesian mines.
Ms Somruedee said although mergers and acquisitions are not a priority, any high-return deal in Indonesia would be considered ranging from $500 million to $1 billion in value, given excess cash on hand.
With total debts of about $3 billion, the company services a $300 million financial liability each year. Its net debt-to-equity ratio remains low at 0.83 times.
Shares of BANPU closed unchanged yesterday on the SET at 388 baht, in trade worth 161 million baht.