Banpu reports higher coal production, sales volume

By Romel S. Gurky

Thai coal giant Banpu Pcl said that coal output in the third quarter of this year increased slightly by 1.7 percent to 7.44 million tons from 7.31 in the same quarter of last year.

The company said in a statement obtained Tuesday that the Indonesian coal mine operations delivered another strong quarter sales volume at 7.48 million tons, up compared to 6.62 million in the same third quarter period of last year.

?The company expects its coal sale in this year is likely to achieve the target of 29 million tons,? Banpu said in the statement.

The unfavorable coal market environment will continue to pressure the average coal selling prices during the short-term. However, a series of cost rationalization put in place since early this year has lessened the impact on profitability, it said.

The average selling price in the third quarter of this year was $ 72.65 per ton or -17 percent YoY and -6 percent QoQ. The average cost of sale reduced to $ 48 per ton ( -5% YoY and -6 % QoQ) whereas the gross profit margin improved to 38 percent compared to 42 percent in last year and 34 percent in previous quarter.

?	3Q13?	2Q13	3Q12
Production (M tonnes)
Indominco - West Block	1.24	1.08	1.64
Indominco - East Block	2.70	2.47	1.97
Trubaindo??	1.82?	1.87	2.39
Bharinto??	0.45	0.51	0.15
Jorong?	0.30	0.35	0.28
Kitadin - Embalut	0.24	0.28	0.32
Kitadin - Tandung Mayang	0.69	0.57	0.57
Total	7.44	7.12	7.31
Coal sales volume (M tonnes)
Indominco	3.85	3.56	3.59
Trubaindo	1.92	1.85	1.76
Bharinto	0.63	0.47	0.02
Jorong??	0.31	0.23	0.19
Kitadin - Embalut	0.24	0.27	0.32
Kitadin - Tandung Mayang	0.54	0.56	0.75
Total	7.48	6.94	6.62

Editing by Reiner Simanjuntak