Bangkok--16 May--Banpu
Revenue increases, but net profit down due to lack of non-core divestment gains; 2006 revenue is expected to meet target
Banpu Public Company Limited recently reported its 2006 first quarter result (January 1, 2006 — March 31, 2006) with a net profit of THB 742 million, a decrease of THB 827 million or 53 per cent from the same period last year due partly to no non-core divestment gains in this quarter. The 2006 performance, however, is expected to grow as planned despite floating diesel prices in Indonesia and higher coal production costs. Additionally, the Company is focusing on diversifying into power and increasing its cost management efficiency in order to ensure sustainable growth.
“Cost management will become more challenging for coal producers this year. The floating diesel price in Indonesia has inflated production costs and squeezed gross profit margins while the export tax for Indonesian coal (total THB 233 million) has added to this quarter’s selling expenses. To manage costs efficiently and continuously, a number of measures have been actively pursued including a reduction of overburden-to-coal ratios, a deployment of a more efficient barge fleet, and initiation of an energy saving program at every office and all mine sites. In addition, the Company is trying to diversify its investment into the power business as a way of sustaining the Company’s revenues,” said Mr. Chanin Vongkusolkit, Chief Executive Officer (CEO) of Banpu Public Company Limited.
During the first quarter of fiscal year 2006, Banpu’s sales revenue was at THB 7,582 million, increasing THB 2,561 million or 51 per cent from the same period last year due to appreciation of coal sales volume and selling price. In addition, the power revenue from China where Banpu acquired Peak Pacific Investment Group (PPIC) in late February this year was consolidated in the Company’s first quarter net income statement.
Banpu’s Q1 revenue was mainly from coal sales of THB 7,253 million, accounting for 96 per cent of total sales revenue, comprising THB 6,662 million of sales from Indonesian coal mines and THB 591 million of sales from domestically produced coal. Power and steam revenue from China was at THB 259 million, accounting for 3 per cent of total sales revenue. Earning per share was recoded at THB 2.73.
“The financial statement for the first quarter of 2006 reflected sound improvements in the coal operation and marked the first period the Company realized income from investment in China’s coal and power businesses. The Company’s net profit for this quarter, however, decreased from the same period last year due to a lack of non-core divestment gains in this quarter,” Mr. Chanin elaborated.
The Company’s overall coal sales volume in the first quarter of 2006 was up to 5.07 million tonnes, 31 per cent higher from the same period last year. The average coal-selling price was quite stable at USD 35.32 per tonne, increasing 11 per cent from the same period last year. The higher selling price was from realization of higher contracted coal prices during the past year. In 2006 the Company has a plan to produce 21 million tonnes of coal, an increase of 4 million tonnes from last year.
As at March 31, 2006, the Company’s total assets was reported at THB 45,683 million, an increase of THB 595 million or 1 per cent compared to that of December 31, 2005. Meanwhile, liabilities were reported at THB 24,568 million, increasing THB 1,366 million or 6 per cent, compared with December 31, 2005. Net debt to equity on consolidated balance sheet as at March 31, 2006 was at 0.52 times, compared with 0.34 times as at December 31, 2005.
For further information, please contact
Maunfun Chiraiam
Corporate Communications
Banpu Plc.
Tel: 02-694-6873