Banpu announces Q2 result Net profit earned at THB 807 million, forecasting 2006 sales revenue at THB 30 billion
Banpu Public Company Limited recently reported its 2006 second quarter result (April 1 – June 30 2006) with a net profit of THB 807 million, a decrease of THB 781 million or 49 percent compared to the same period last year. This was due to a lower gain from non-core business divestment and a decline in earning from core business.
“A net profit of THB 807 million in the second quarter is 9 percent higher than the first quarter but 49 percent lower than the same period last year due to lower gain from non-core business divestment by THB 419 million and a decline in earnings from core business. Additionally, sales volume in the spot market was lower than our projection. The 2006 sales revenue, however, is forecasted to grow as target at THB 30 billion or 20 percent higher than 2005,” said Mr. Chanin Vongkusolkit, Chief Executive Officer of Banpu Public Company Limited.
In the second quarter this year, Banpu’s sales revenue was at THB 7,193 million, increasing THB 1,702 million or 31 percent higher than the same period last year. The increase was driven by appreciation of coal sales volume and consolidation of 3 Chinese power plants acquired by Banpu in February this year, which has broaden the Company’s earning base. The second quarter’s sales revenue included coal sales revenue of THB 6,363 million, accountable for 88.46 percent of total sales revenue. Coal sales revenue of THB 5,824 million was generated by Indonesian coal mines and THB 484 million from domestically produced coal. Sales of power and steam was at THB 808 million or 11.23 percent of total sales revenue while the remaining portion of THB 22 million or 0.31 percent of total sales revenue was from others.
“In late this year, the Company will realize an income from BLCP Power Plant after the commercial operating date of its first unit in this coming October. Revenue from coal business, though is quite stable, the Company will continuously focus on cost management to better cope with changes in operating environment. The ongoing cost saving schemes will be continued. These include energy conservation program, logistic efficiency management such as shortening turnaround time of barging and loading as well as port capacity and efficiency improvement. The Company will also implement asset management, particularly reduction of the assets with low return on investment. In line with this strategy, the closure of Kitadin-Embalut underground mines in Indonesia would take place and it would help in cost saving in the long-term,” Mr. Chanin added.
Banpu’s coal sales volume in the second quarter totaled 4.77 million tonnes, 26 percent increasing from the same period last year. Target tonnage of coal production for 2006 is planned at 21 million, of which 9.9 million tonnes have been produced in the first half-year. Meanwhile the Company’s average coal selling price in the second quarter was USD 33.54 per tonne, decreasing 2 percent from last year resulted from realization of lower contracted prices during the fourth quarter of previous year. The 2006 average coal selling is estimated at USD 35 per tonne.
Banpu is one of leading energy companies in Asia where its production bases are located in Thailand, Indonesia and China. The Company’s total assets and total liabilities shown on its consolidated balance sheet as of June 30, 2006 were at THB 42,616 million and THB 22,233 million respectively. Total assets decreased THB 2,472 million or 5 percent while total liabilities were lower by THB 969 million or 4 percent compared with those as of March 31, 2005. The net -debt – to equity ratio as of June 30, 2006 was at 0.81 times compared to 0.48 times as of December 31, 2005.