Banpu reports revenue boost in first quarter, driven by rising coal price
Banpu Public Company Limited, a pioneering Asian energy company operating power, coal and other related energy businesses, reported improved first-quarter results year on year, driven by the increasing price of coal.
Banpu reported total sales revenue of US$633 million (Bt22.22 billion), an $81-million increase over the same period last year, up 15 per cent.
Banpu is also seeing a significant increase in EBITDA (earnings before interest, tax, depreciation and amortization) of 93 per cent year on year although flat quarter on quarter at $216 million. Net profit for the first quarter of the year amounted to $40.86 million, a turnaround from a net loss of $5.15 million in the same period last year.
Banpu has expanded its investments in shale gas in the US. Also, the company aims to strengthen its midstream business strategy in coal trading and is also looking for opportunities to become a leading energy provider in the Asia-Pacific region.
Somruedee Chaimongkol, Banpu’s chief executive officer, said: “In the first quarter of this year, Banpu has managed to achieve its goals in all businesses; from upstream to downstream, and has fully benefited from the improvement in the coal market situation at the end of the previous year. An increase in the average selling price of coal results in higher sales revenue, which was previously affected by a seasonal decrease in demand for coal in Indonesia and the move of longwall machinery at the mine sites in Australia.”
He said Banpu had also received additional revenue from the second shale gas resource in northeast Pennsylvania, where it invested earlier this year, along with an increase in power generating capacity and the smooth operation of all three units of the Hongsa Power Plant.
He said the 15-per-cent year-on-year increase in Banpu’s total sales revenue was largely due to a continued rising of the global coal price. Of the $633-million revenue, coal sales accounted for $566 million, or 89 per cent of total sales revenue. Sales of power, steam and others generated $60 million, representing 9 per cent of total revenue. In addition, the gas business from two shale sources in Pennsylvania generated $7 million, accounting for 1 per cent of the sales revenue.
