Banpu 1Q/2011 Net Profit Jumps
Banpu Public Company Limited (BANPU) reports its financial result for the first quarter 2011 with a net profit of THB 9,163 million, an increase of 237 percent from the same period last year. This was a result of a sound operating performance of Indonesian coal business, higher coal sales volume after an acquisition of Australia’s Centennial Coal, and a gain from a divestment of Daning Mine in China.
Mr. Chanin Vongkusolkit, Chief Executive Officer of Banpu, said that the THB 9,163 million net profit in the first quarter was comprised of THB 8,829 million from coal business and THB 334 million from power business. A significant increase of net profit (compared to the same quarter last year) was driven by a divestment of Daning Mine in China, in which the Company recorded a net gain (after tax) of THB 6,307 million while a profit from coal business was also increasing due to higher coal sales volume after an acquisition of Centennial Coal late last year. In addition, an increase of average selling price of Indonesian coal mines climbed to USD 87.39 per tonne, a rise of 32 percent from the same quarter last year following a strong coal price in the regional coal market.
“Profit from a bottom line is considerably favorable especially the coal business. The rising average selling price of Indonesian coal mines helped compensate the increasing diesel cost, which was up to USD 0.93 per litre or 29 percent higher than the previous quarter. This made the gross profit margin (GPM) of Indonesian coal business risen to 47 percent from 45 percent last year. The Australian coal business reported a stable performance in its operations with the rise to 38 percent GPM compared to 32 percent previous quarter,” said Mr. Chanin.
In the first quarter, the Company recorded a total coal sales volume of 9.1 million tonnes, an increase of 47 percent from the same period of the previous year, consisting of 5.4 million tonnes from Indonesian coal mines and 3.7 million tonnes from Australian coal operations. Total sales revenue was THB 24,178 million, an increase of THB 8,972 million or 59 percent higher from the same quarter last year. Coal sales revenue, representing 94 percent of total revenue was THB 22,716 million, increasing THB 8,927 million or 59 percent due to higher sales volume and selling prices. Sales of power and steam from the three combined heat and power plants in China and others wasTHB1,462 million, accountable for 6 percent of a total sales revenue.
“In the first quarter this year, our power business posted the declining net profit. BLCP had a smooth operation with equity income of THB 529 million, a 47 percent decrease from the same period last year as a result of the lower contracted tariff in this year and the loss of foreign exchange of THB 20 million . Meanwhile, Banpu Power Investment (China) or BPIC, a subsidiary company operating the 3 combined heat and power plants in China recorded the net profit of THB 126 million compared to THB 250 in the same period last year.
Banpu Public Company Limited is an energetic Asian energy company managing coal and related business, operating in four countries including Thailand, Indonesia, China and Australia. As of 31 March 2011, Banpu assets totaled THB 200, 202 million, an increase of 4 percent compared to 31 December 2010. Total liabilities were THB 84,676 million, or 31 percent lower than that of 31 December 2010. Net Debt to Equity ratio as of 31 March 2011 was 0.98 times compared to 1.016 times as of 31 December 2010. The Earning Per Share (EPS) for the first quarter 2011 was reported at THB 33.72 a share, compared to THB 9.92 per share the same quarter a year earlier.