Banpu eyes Vietnam uptick

SET-listed Banpu Plc, Thailand’s largest coal producer, is exploring further opportunities in conventional power plants and renewable businesses in Vietnam.

The company has committed t o beginning commercial operations of the 200-megawatt wind power plant in Soc Trang province in 2021.

Chief executive Somruedee Chaimongkol said Banpu continues to strengthen business integration, covering upstream, midstream and downstream production in Asia-Pacific.

“The business presence in Vietnam will maximise benefits for Banpu throughout the value chain as it aims respond to increases in energy demand,” she said.

Mrs Somruedee said Banpu was recently awarded a contract with Vietnam Electricity, securing 1.3 million tonnes of coal supply.

Banpu also established its first office in Ho Chi Minh City to help liaise with business development.

“Banpu is capable of serving various demand types in Vietnam’s market with its strengths in providing and transporting high quality and customised coal to customers through its strong business partnerships and network,” she said.

Banpu reported financial results for the third quarter with total sales revenue of US$965 million (32 billion baht), up by 34% from the same period last year.

Earnings before interest, tax, depreciation and amortisation for the period increased to $310 million, up by 18% year-on-year.

Net profit in the third quarter was reported at $76 million while the operating profit, excluding foreign exchange losses, was $100 million, up by 15% from the previous quarter.

“This is because of consistent demand for coal in the market, given tight supply in the last quarter, resulting in our higher average coal sales prices,” said Mrs Somruedee.

She said Banpu’s coal business delivered higher sales volume, enabling this business unit to capture robust coal market prices. The company’s two power plants — Hongsa in Laos and BLCP in Rayong — demonstrated high efficiency, said Mrs Somruedee.