AGE revenue up as coal demand grows
published : 7 Sep 2021 at 04:30
newspaper section: Business
writer: Yuthana Praiwan
SET-listed coal trader Asia Green Energy (AGE) maintains its revenue target of 37% growth to 11 billion baht this year, up from 8 billion in 2020, thanks to rising demand for coal.
Panom Kuansataporn, chairman of the executive committee, said sales volume in 2021 is expected to grow by 25% to 5.5 million tonnes, compared with 4.4 million last year.
Coal demand is resuming growth and likely to return to levels seen before the pandemic, he said.
The coal trade turned sluggish during the lockdown period.
AGE saw its revenue in the first half this year rise by 71% to 5.8 billion baht and net profit increase by 136% to 121 million baht, thanks to the growth of sales volume, which was also driven by a shift from oil to coal among its customers.
Coal trade makes up 90% of AGE's total revenue, with the remainder coming from logistics.
In the logistics business, Mr Panom said the company increased its revenue target to 1 billion baht, up from 600 million. Last year revenue stood at 300 million baht.
AGE developed logistics facilities a few years ago to provide coal transport.
Last year logistics turned into a new source of revenue as it expanded the service to other companies.
AGE plans to service more companies with logistics this year, particularly those in heavy industry, he said.
The company wants to increase its large trucks to a fleet of almost 100 this year, up from 68 at present, said Mr Panom. Partners also provide 500 trucks.
The trucks can also be used for other purposes such as helping its customers carry goods, including cement, biomass fuel and agricultural products.
Truck transport expansion is part of AGE's 2021 capital spending worth 200 million baht. Some of the money is allocated for other projects such as coal warehouse improvement, he said.