Banpu Reports 2Q/2009 Result Net profit rising from coal business
Banpu Public Company Limited (BANPU) has announced its financial performance for the second quarter 2009, posting a net profit of THB 3,982 million, an increase of THB 1,683 million or 73 percent from the same period last year. This was mainly due to higher coal sales volume and selling price as well as a remarkable increase of equity income from the Chinese coal business.
“The higher net profit in the second quarter was boosted by an increase of coal sales volume and a higher selling price from Indonesian coal mines. Additionally, a sound performance of the Chinese coal business (Hebi Mine and Asian American Coal Inc.) generated an equity income of THB 1,762 million or 55 percent higher than the first quarter this year following a higher production volume and a strong coal price in China. The second quarter’s net profit, however, was down 17 percent from the first quarter 2009 due to lower coal selling price and a small gain from financial derivatives,” said Mr. Chanin Vongkusolkit, Chief Executive Officer of Banpu.
Banpu average coal sales price in the second quarter this year was USD 73.89 per tonne or 12 percent lower than USD 84.23 per tonne of the previous quarter since coal sales contracts of this quarter were priced during the second half of 2008 when the market coal price was softening. The Company’s coal sales volume in the second quarter 2009 was 4.51 million tonnes, up 10 percent from the first quarter, resulted by higher coal production and better managed coal shipments from Indonesia in this quarter. Moreover, the commencement of Indominco’s new production area in the East Block will help increase production volumes in second half this year.
In power business, Mr. Chanin said that in the second quarter 2009 BLCP reported high electricity dispatch similar to the previous quarter, generating an equity income of THB 1,249 million (including foreign exchange gain of THB 286 million) to Banpu. Meanwhile Banpu Power Investment (China) Ltd or BPIC, a subsidiary company operating combined heat and power plants in China, booked a net profit of THB 101 million, declining 55 percent from the first quarter this year due to lower steam demand during a post-winter period.
Sales revenue in the second quarter 2009 was THB 12, 932 million, an increase of THB 1,865 million or 17 percent compared to the same period last year. Coal sales revenue, accountable for 92 percent of total sales revenue, was THB 11,846 million, a rise of THB 1,839 million or 18 percent from the same period last year. Sales of power and steam from the three combined heat and power plants in China was THB 1,086 million, accounted for 8 percent of total sales revenue.
Banpu Public Company Limited is an energetic Asian energy company managing two core businesses – coal mining and power generation – in three countries namely Thailand, Indonesia and China. As of 30 June 2009, Banpu’s assets totaled THB 93,167 million, an increase of THB 3,805 million compared to those of 31 December 2008. The Company recorded total liabilities of THB 40,974 million, a 7 percent decrease of THB 2,853 million. Its Net Debt to Equity ratio as of 30 June 2009 was 0.25 times compared to 0.36 times as of 31 December 2008. The earning per share (EPS) was THB 14.65 a share, an increase of 73 percent when compared to THB 8.46 a share of the second quarter last year.