Banpu set for significant revenue rise:Report

Banpu Plc said its revenue this year is expected to increase by 40 percent to 22 billion baht from last year?s 15.7 billion baht because of the rise in its production capacity and coal price, Business Day reported.

President Chanin Vongkusolkit said Banpu?s net profit this year is expected to rise on the back of strong a revenue stream from Indonesia?s Trubaindo coal mine.

Chanin said the price of coal next year is expected to rise to US$30 a tonne from the current $25 per tonne.

Currently, Banpu has a combined annual capacity of 15.5 million tonnes, 13.2 million tonnes come from Indonesia and 2.3 million tonnes from Banpu?s coal mines in Thailand, said Chanin.

Last year, Banpu had a combined coal capacity of 13.6 million tonnes or an increase of 2.1 million tonnes from in 2002, he added.

Banpu?s total capacity will rise to 22 million tonnes of which 20 million tonnes come from Indonesia and two million tonnes from Thailand?s coal mines, said Chanin.

Banpu?s current coal capacity is expected to rise by an additional 2.1 million tonnes, most of which is likely to come from Trubaindo mine in Indonesia, scheduled to start production from October this year.

The Trubaindo source will initially start producing 300,000 tonnes and the capacity will increase to three million tonnes in 2005 and five million tonnes in 2006.

Meanwhile, Banpu?s Bontang source will raise its capacity up to 7.4 million tonnes this year from 6.4 million tonnes last year, ahead of increasing the capacity to 7.5 million tonnes in 2006, said Chanin.

Banpu?s Jorong source capacity will also be raised to three million tonnes this year from 2.9 million tonnes last year, said Chanin.

The capacity of Embalut source in Indonesia will decrease to 2.5 million tonnes this year from 2.7 million tonnes last year. However, its capacity will rise to 4.5 million tonnes in 2006 onwards, said Chanin.

Banpu?s revenue from its energy business overseas is expected to rise steadily. Its total revenue generated from its coal sources in Thailand is expected to come down to 33 percent this year from 60 percent last year, said Chanin.

Banpu?s revenue from Indonesian coal sources, which accounted for 40 percent of the firm?s total revenue last year, would rise to 67 percent this year, said Chanin.

The increase in revenue from overseas sources was due to the rise in the capacity of the existing sources, while some new overseas sources are scheduled to start production this year, said Chanin.

Banpu?s new power plant, BLCP, is in under construction and will be ready for service in 2007. Currently, Banpu is ranked eighth in the world?s seaborne coal industry, said Chanin.

Banpu?s chief executive officer Rawi Corsiri said Banpu?s sources in Indonesia consist of Bontang in which Banpu, through PT Indominco Mandiri (Indominco), owns a 100 percent stake in East Kalimantan Commercial Operation since 1997, he said.

This source, which has a total proven reserve of 38.455 million tonnes, is expected to dry up in the next five to six years. As such, Banpu will find other new sources to make up for it, he added.(*)