Banpu Reveals Impressive Q1/2019 Operating Results Actuating Greener Strategy – Thriving Natural Gas Investment
• Satisfying overall performance of Energy Resources and Energy Generation groups
• U.S. Natural Gas business enjoying outstanding growth and average selling price per million cubic feet increasing to USD 2.1
• Continuing expanding natural gas investment in the U.S. under the Greener & Smarter strategy
Banpu Public Company Limited (BANPU), a leading integrated energy solution company in Asia-Pacific, has reported its Q1/2019 operating results with EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) of USD 231 million (approximately THB 7.302 billion), and net profit of USD 29 million (approximately THB 916 million). The Energy Resources group achieved satisfactory performance. There has been application of productivity improvement measures as well as long-term value creation measures for its coal mines. Performance in Energy Generation group reflects efficient power generation management which could satisfactorily respond to the seasonal surge in power demand according to the agreed terms in the power purchase agreement.
In Energy Resources group, Coal business enjoyed a 33-percent increase of sales volume yet with average selling price decrease compared to the past year while Natural Gas business showed continuously outstanding performance with EBITDA of USD 28 million (approximately THB 885 million), a 90-percent increase year-on-year thanks to average selling price per million cubic feet increase to USD 2.1, or a 40-percent increase year-on-year. In Energy Generation group, Banpu realized good profit share from the BLCP power plant, whose high efficiency resulted in an EAF of 100 percent while combined heat and power plants in China faced with declining power demand and reduction in average electricity price according to local government’s policy.
Natural Gas business, which is under Banpu’s Energy Resources group, has shown positive signs of continuous growth in line with the strong upward trend of the U.S. natural gas industry. The industry has enjoyed significantly higher demand for natural gas and such uses of natural gas as fuel at power plants and large industrial plants as well as a produce of liquefied natural gas (LNG). In particular, the Marcellus Shale is the largest natural gas field in the U.S. with rich raw materials and good facilities and transmission pipeline system linking to important markets, especially the southern coast of the USA.
Over the past years, Banpu has been expanding its Natural Gas business by stepping forward as a gas operator and establishing a field office. The Company follows a proactive management approach led by the experienced executives in the oil and gas industry who work with local engineers to support strategic planning. Banpu is also moving forward to utilize big data to enable market penetration and developing data analytics technologies to ensure the most accurate results.
Banpu’s Shale Gas Infrastructure, Marcellus Shale, Northeast Pennsylvania
Ms. Somruedee Chaimongkol, Chief Executive Officer of Banpu Public Company Limited, revealed: “The prudent proactive management approach to our Natural Gas business has raised our competitive advantage in capacity and reserve management to correspond with the natural gas prices and market demand. We are also able to enter into a direct purchase agreement with buyers, enabling maximum return and continuous better-operating results. Moreover, we succeeded in cost management and managed to earn as high profits as large gas producers in the Marcellus Shale region. We also eye more investments in downstream and midstream businesses (gas transmission pipeline construction) focusing on leveraging existing and new assets to create mutual benefits in response to changing global energy trends in terms of greater demand for clean energy and business expansion under the Greener & Smarter strategy, which stresses a more environmentally-friendly business operation.”
*Remark: Calculation based on exchange rate USD 1: THB 31.61
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About BANPU
Banpu Public Company Limited is a leading integrated energy solutions company with3 core groups of businesses; energy resources, energy generation and energy technology in 10 countries: Thailand, Indonesia, China, Australia, Lao PDR, Mongolia, Singapore, Japan, the United States of America and Vietnam. As of 31 March 2019, Banpu’s assets totaled USD 8.576 billion, an increase of USD 122 million compared to the total assets as of 31 December 2018
