Thai Banpu sees strong 2011 growth on higher coal price

Fri Mar 4, 2011 10:31am GMT

* Q1 sales seen up 69 pct, 2011 sales up 40 pct
* 2011 revenue seen at 90 bln baht vs forecasts of 106 bln
* To fully book revenue from Centennial in 2011
* Reviews business plan in China
* Shares up 0.3 percent, in line with market
By Pisit Changplayngam

NAKORN RATCHASIMA, Thailand, March 4 (Reuters) - Banpu Plc (BANP.BK: Quote), Thailand's top coal miner, expects sales to jump 40 percent in 2011 due to a rise in coal prices and higher revenue after its acquisition of Australia's Centennial Coal Co Ltd.

Banpu, also Indonesia's fourth-largest coal miner with five mines there, expected first-quarter revenue of 22 billion baht ($722 million), up 69 percent from 13 billion last year, Chief Executive Officer Chanin Vongkusolkit told reporters.

Banpu expects first-quarter coal sales of 5.5 million tonnes from Indonesia and 4 million tonnes from Australia, where it now has 10 mines after the acquisition of Centennial Coal last year.

"We will fully book revenue from Centennial this year. We expect revenue of about 90 billion baht this year because our sales volume will rise to 44-45 million tonnes from 25.9 million tonnes last year," Chanin said.

Banpu, which began to consolidate Centennial's earnings from the fourth quarter of last year, expected coal output of 26 million tonnes from Indonesia this year and 18-19 million tonnes from Australian operations, he said.

Banpu's 2011 revenue forecast was lower than market expectation. Analysts polled by Thomson Reuters I/B/E/S expected Banpu to post revenue of 106 billion baht.

In 2010, Banpu made a net profit of 24.7 billion baht on sales of 65 billion baht.

Chanin said he expected average coal prices in 2011 to be higher than $80 a tonne and close to $90, versus $74.65 in 2010.

In Indonesia, Banpu's PT Indo Tambangraya Megah Tbk (ITMG.JK: Quote) competes with bigger rivals PT Bumi Resources (BUMI.JK: Quote) and PT Adaro Energy (ADRO.JK: Quote).

The company owns three mines in China, including one in Daning whose operations have been suspended since January.

Chanin said Banpu was waiting for the government to allow operations to resume and the company was reviewing its business direction in China.

Banpu aimed to spend $140 million this year, of which $120 million would be spent on developing existing mines in Indonesia and $20 million in China, he said.

The investment is part of its announced investment of $466 million between 2010 and 2015.

It planned to sell up to 15 billion baht in bonds with maturities of seven, 10 and 12 years in March and the proceeds would be used to repay debt and finance investment, he said.

At the end of 2010, Banpu had debt of 90 billion baht including 10.3 billion baht in bonds, versus 30 billion baht at the end of 2009, chief financial officer Somruedee Chaimongkol said.

Banpu shares closed up 0.3 percent, in line with a 0.6 percent gain in the broad market .SETI.. ($1=30.48 Baht) (Writing by Khettiya Jittapong; Editing by Alan Raybould,sourced:Reuters)