Banpu Public Company Limited is optimistic about its business prospects for the second half of the year, buoyed by rising gas and coal prices. The company emphasizes the importance of continued economic stimulus measures by the new Thai government to sustain rapid economic expansion.
Banpu CEO Sinn Vongkusolkit noted that the upcoming U.S. presidential election in November could impact Banpu’s subsidiary, BKV Corporation, and its plans to list on the New York Stock Exchange. Although BKV is prepared for the listing, the company is waiting for more stable market conditions, with a clearer picture expected in the latter half of next year.
BKV recently sold non-core upstream and midstream assets in the Marcellus Shale, Pennsylvania, for approximately 132 million US Dollars. This strategic move is intended to maintain strong financial discipline and focus on higher-return assets.
Banpu expects improved business performance in the second half of the year, supported by rising gas and coal prices. The current coal price stands at around 150 dollars per ton, up from 135 dollars per ton in the first half. Gas demand in the U.S. is also anticipated to increase during the winter months, with reduced supply driving up gas prices from the current 2 dollars per million BTU.
Sinn emphasized Banpu’s continued focus on efficiency and cost control in production to maintain cash flow and reduce costs. The company is on track to meet its coal sales target of 40.8 million tons this year.
In the first half of 2024, Banpu reported total sales revenue of 2.441 billion dollars, EBITDA of 650 million dollars, and a net profit of 69 million dollars.
Banpu’s three main business groups performed well, with a strong focus on production efficiency and cash flow generation in its energy resources segment. The natural gas business saw significant developments, including a carbon-neutral gas sale agreement with ENGIE Energy Marketing NA, Inc., and Kiewit Infrastructure South Co.
In the power generation sector, the company’s natural gas power plants Temple I and II in the U.S. continued to perform strongly. The renewable energy segment, including solar power plants in China, Japan, Vietnam, and Australia, also generated steady cash flow.
Banpu’s energy technology segment has seen significant advancements, including the signing of new solar rooftop contracts in Thailand with a total capacity of 1.9 MW, bringing the operational capacity to 100 MW. The company also secured a 10 MW solar rooftop PPA in Indonesia and began lithium-ion battery production at the SVOLT Thailand plant, with the first batch delivered to a major bus operator in Thailand. (NNT)
