BANPU Announces 1Q/2013 Results
Mr. Chanin Vongkusolkit, Chief Executive Officer of Banpu Public Company Limited (BANPU) said that in the first quarter 2013, Banpu recorded a satisfactory performance from its core businesses’ bottom lines despite the world’s softening coal prices. The Company posted a net profit of USD 31 million (approximately THB 925 million), a decrease of 57 percent from the same quarter last year. The decline in net profit was caused by a decrease in the average selling price (ASP) to USD 76.91 per tonne from USD 92.08 per tonne in the first quarter of 2012.
The production and sales volume of this quarter, however, increased 0.74 million tonnes from the same period last year to 9.97 million tonnes. The Indonesian operations had coal outputs in line with the plan with sales volume reaching 7 million tonnes, despite the rainy season. The Australian coal production was impacted by the long-wall change-over at Mandalong Mine, which was longer than plan. Total coal sales from the Australian mines dropped 0.55 million tonnes in this quarter.
“The declining ASP in the first quarter 2013 was in line with the market’s softening coal prices since last year. This year, the Company continues to focus on managing and reducing costs to lessen the impact from lower coal prices. In addition, production of the Australian coal mines returns to normalcy after the Mandalong Mine recommenced its long-wall operation. This would help improve the Company’s operational performance in the near future,” said Mr. Vongkusolkit.
The Chinese coal operations generated an equity income of USD 10.2 million (THB 303 million), 70 percent higher than the same period a year earlier. BLCP Power Plant performed well in the first quarter. Banpu realized earnings of USD 17.1million (THB 510 million) from BLCP, 59 percent higher than the first quarter of 2012.
Mr. Vongkusolkit added that in the first quarter 2013, Banpu recorded a total sales revenue of USD 835 million (around THB 24.91 billion), 9 percent lower than the same period last year. Coal sales accounted for 92 percent of the total revenue at USD 770 million (THB 22.96 billion) with the remaining 8 percent, or USD 57 million (THB 1,705 million) and USD 8 million, coming from sales of power and steam from the three combined heat and power plants in China and other sales, respectively. The Hongsa Power project in Laos has progressed well with around 50 percent construction completed. It is expected to commence commercial operations in 2015.
According to the share repurchase program in place since 15 March 2013, Mr. Vongkusolkit said that a total of 3,727, 200 shares or 1.37 percent of the total paid-up capital with a value of around THB 1.3 billion has already been bought back. Banpu plans to buy back a maximum amount of about 13.56 million shares, equaling 5 percent of the total paid-up capital. The maximum amount allocated for the share repurchase is THB 6.15 billion and the program will close on 14 September this year.
As of 31 March 2013, Banpu assets totaled USD 7,754 million (THB 227,278 million) while total liabilities were USD 4,691 million (THB 137,494 million), an increase of USD 40 million and USD 23 million, respectively, when compared to those of 31 December 2012. Net Debt to Equity ratio as of 31 March 2013 was 0.81 times compared to 0.79 times as of 31 March 2012. The Earnings per Share (EPS) for this quarter was at USD 0.11 per share (THB 3.28 per share), compared with USD 0.25 per share (THB 8.06 per share) in the first quarter 2012, 57 percent decreasing from the same period last year.