Banpu assigns $182m for 2018

SET-listed Banpu Plc, Thailand’s biggest coal miner, has budgeted US$182 million (573 billion baht) for capital investment in ongoing projects during 2018.

Chief executive Somruedee Chaimongkol said most of the projects are overseas.

Power business capacity expansions will see the majority of the budget, with $80 million to add 96.5 megawatts and $70 million allocated to energy technology solutions (ETS) for Banpu’s renewable energy.

The company plans to spend $20 million on shale gas production in the US and $2 million on scheduled coal mine production.

The 2018 capital investment budget is $210 million less than that of 2017 because Banpu has already paid for massive investment projects over the last few years, including its new power plant and shale gas resources in the US.

The company expects coal sales volume in 2018 to rise by 8% to 44.8 million tonnes.

Major coal production resources will come from Indonesia (26 million tonnes), Australia (14.1 million) and China (4.7 million).

In a related development, Banpu said total sales last year soared 27% to 97.32 billion baht.

Net profit jumped almost 400% to 7.9 billion baht, an all-time high, compared with 1.68 billion baht the year before.

Ms Somruedee said the strong net profit came from the global coal market, which saw prices shoot up 40% to $71.10 a tonne in 2017 from an average of $51 in 2016.

Moreover, power business subsidiary Banpu Power Plc (BPP) reported total revenue in 2017 of 6.42 billion baht, up 16%. This included 659 million baht from six operational solar power plants in China and 5.76 billion baht from combined heat and power plants (CHP) at Luannan, Zhengding and Zouping.

BPP recorded a net profit of 3.68 billion baht last year, a 5% rise.

BPP chief executive Sutee Sukruan said that despite increasing coal costs, which affected the performance of power plants in China during the fourth quarter last year, BPP made a profit through higher power and steam sales during the winter season.

Until 2023, BPP will have 2,789MW in total power-generating capacity.

BANPU shares closed yesterday on the Stock Exchange of Thailand at 22.20 baht, up 60 satang, in trade worth 3.4 billion baht.

BPP shares closed yesterday at 24.80 baht, up 50 satang, in trade worth 36 million baht.