Thai Banpu to invest $600 mln, sees growth in 2012
Thailand’s top coal miner, Banpu Pcl, said on Friday it aimed to invest $600 million in 2012, mostly to develop coal mines in Indonesia and Australia, and it expected higher operating profit this year.
Banpu, Southeast Asia’s fourth-biggest coal miner, expected 2012 revenue to rise about 15-20 percent due to rising coal sales volume and higher prices, Chief Financial Officer Somruedee Chaimongkol told reporters.
“We already made forward contracts to sell coal, about 40 percent of expected sales this year, with an average price higher than $100 a tonne, which is higher than average prices last year,” she said, adding the budget figure excluded funds for any acquisitions it might make.
Her revenue forecast was better than market expectations. The company is expected to post revenue of 115.8 billion baht ($498 million) for 2012, up 10 percent on the year, according to Thomson Reuters I/B/E/S.
Through its Indo Tambangraya Megah, Banpu owns five mines in Indonesia, the largest revenue contributor. It also has 10 mines in Australia after the acquisition of Centennial Coal and two in China.
The company expected coal sales of 27 million tonnes in Indonesia this year, up from 25 million last year, and aimed for 16 million tonnes from Australia, up from 15 million in 2011, Somruedee said.
Major customers for its Australian coal are power plants in Japan and China, where demand remained strong, she said.
Banpu is due to repay about 4-5 billion baht ($126-$157 million) in debt this year and the company was considering the possibility of issuing bonds to refinance the debt, she said.
“We haven’t decided whether we will issue bonds. It depends on market conditions,” she said, adding that if Banpu went ahead, the issue amount would be around 7-10 billion baht.
Somruedee said Banpu also planned to invest in Mongolia-focused Australian coal explorer Hunnu Coal Ltd as it aimed to produce and sell coal in the next two to three years.
Hunnu has not yet started a commercial run and Banpu expected it to produce at around 5 million tonnes per year, she said.
Banpu shares ended up 0.35 percent, while the broader index was flat. ($1 = 31.75 Baht) (Reporting by Pisit Changplayngam; Writing by Khettiya Jittapong; Editing by Alan Raybould)
Banpu, Southeast Asia’s fourth-biggest coal miner, expected 2012 revenue to rise about 15-20 percent due to rising coal sales volume and higher prices, Chief Financial Officer Somruedee Chaimongkol told reporters.
“We already made forward contracts to sell coal, about 40 percent of expected sales this year, with an average price higher than $100 a tonne, which is higher than average prices last year,” she said, adding the budget figure excluded funds for any acquisitions it might make.
Her revenue forecast was better than market expectations. The company is expected to post revenue of 115.8 billion baht ($498 million) for 2012, up 10 percent on the year, according to Thomson Reuters I/B/E/S.
Through its Indo Tambangraya Megah, Banpu owns five mines in Indonesia, the largest revenue contributor. It also has 10 mines in Australia after the acquisition of Centennial Coal and two in China.
The company expected coal sales of 27 million tonnes in Indonesia this year, up from 25 million last year, and aimed for 16 million tonnes from Australia, up from 15 million in 2011, Somruedee said.
Major customers for its Australian coal are power plants in Japan and China, where demand remained strong, she said.
Banpu is due to repay about 4-5 billion baht ($126-$157 million) in debt this year and the company was considering the possibility of issuing bonds to refinance the debt, she said.
“We haven’t decided whether we will issue bonds. It depends on market conditions,” she said, adding that if Banpu went ahead, the issue amount would be around 7-10 billion baht.
Somruedee said Banpu also planned to invest in Mongolia-focused Australian coal explorer Hunnu Coal Ltd as it aimed to produce and sell coal in the next two to three years.
Hunnu has not yet started a commercial run and Banpu expected it to produce at around 5 million tonnes per year, she said.
Banpu shares ended up 0.35 percent, while the broader index was flat. ($1 = 31.75 Baht) (Reporting by Pisit Changplayngam; Writing by Khettiya Jittapong; Editing by Alan Raybould)
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