BANPU SETS BT15.5-BN INVESTMENT PLAN FOR THE NEXT SIX YEARS

       Banpu has set an ambitious US$466 million (Bt15.8 billion) investment plan over six years from 2010-2015 to cope with increasing demand for coal and power.
       The International Energy Agency forecasts Asean's energy consumption rising 2.1 per cent a year until 2030. Energy consumed by the 10 country members of Asean may increase by 76 per cent from 2007 to 2030 because of economic expansion. Investment in the sector would be $390 billion higher than the reference case.
       Banpu CEO Chanin Vongkusolkit said yesterday that the coal mining business has room to grow for at least for 10-20 years. The six-year investment plan covers coalmines in Indonesia worth $190 million, coalmine expansion in China worth $22 million and the Hong Sa hydropower project in Laos, which is expected to begin operations in 2015.
       The coalmining business is now in focus again, thanks to high demand in 10-20 years, and the company might spend more on improving human resources and technology to prepare for the coal business, he said. Coal sales could rise to 33.5 million tonnes in 2015 from 23.3 million tonnes at present.
       Banpu expects the coal price next year to decline to $60 per tonne from $71-72 this year, but it may consider selling premium coal next year to boost its average coal price to above $70.
       Under the investment plan, the power business should generate 10-15 per cent of total sales in 2015 from the current level of 30 per cent. Early this year, Chanin said the company is bidding on three to four power plants and two to three coalmines. Those projects are excluded from the six-year investment plan.
       Banpu posted consolidated third-quarter net profit of Bt3.8 billion, an increase of 22 per cent from Bt3.11 billion the year before. Earnings were boosted by higher coal sales from Indonesian coalmines and a gain from financial derivatives, mostly coal swaps.
       "Coal sales volumes in the third quarter were 5.31 million tonnes, an increase of 15 per cent from the same period last year and 18 per cent from the previous quarter, thanks to higher coal sales volumes from Indonesian coal mines.
       "In addition to higher quantity of coal sales, financial derivatives especially from coal swaps have helped lift the net profit of the third quarter," he said.
       Revenue and profit this quarter would drop from last quarter due to a decline in coal prices in Indonesia and the shutdown of the BLCP power plant for maintenance, as well as reduced coal production in China, he said.
       Banpu targets revenue this year at Bt57 billion, up from Bt56.83 billion last year.
       Banpu's stock price closed yesterday at Bt462, up 3.12 per cent from Tuesday. Most of the 13 energy stocks posted increases in third-quarter net profits. Their combined net profit was Bt39.57 billion, up 53.36 per cent from Bt25.80 billion in the same period last year.
       PTT, the largest energy firm, and its subsidiaries also saw bigger net profits. Bangchak recorded the highest profit growth - 956 per cent to Bt2.15 billion from a loss of Bt251 million - followed by IRPC with 151.90 per cent to Bt2.29 billion from a loss of Bt4.43 billion.
       Ratchaburi Electricity Generating Holding posted the lowest growth at 20.19 per cent to Bt1.65 billion from Bt2.07 billion last year.