BANPU SAYS 2012 EARNINGS HURT BY COAL PRICES, ONE-TIME GAIN

(Following is an emailed statement from Banpu Pcl. The
press release was confirmed by the sender.) 
Press Release 21 February 2013
Banpu Reports 2012 Results 
Banpu Public Company Limited (BANPU) reports its 2012
financial results, posting a 4 percent increase in sales revenue
compared to last year, thanks to higher coal sales from
Indonesian coal operations. The power business also recorded a
sound performance, providing a solid earnings base for the group. 
Mr. Chanin Vongkusolkit, BANPU Chief Executive Officer
disclosed that in 2012 BANPU recorded a total sales revenue of
THB 117,337 million, an increase of THB 4,933 million or 4
percent from the previous year. Coal sales accounted for 95
percent of the total revenue at THB 110,807 million with the
remaining 5 percent, or THB 5,679 million, coming from sales of
power and steam from the three combined heat and power plants in
China. 
Of total coal sales, the Indonesian operations contributed
THB 77,234 million while the Australian mines generated a
further THB 33,538 million. The 2012 sales revenue was in line
with the target set, resulted by an increase in coal sales
volume from Indonesian operations. Sales of power and steam
increased 8 percent from the previous year. 
In 2012, Banpu recorded a total coal sales volume of 41.57
million tonnes, 5 percent higher year on year. Indonesian coal
operations delivered strong sales volume of 27.20 million tonnes.
This was 10 percent or 2.56 million tonnes higher than 2011, and
above plan. 
The increase in Indonesian coal sales volume was supported
by adjustments to the mine plan made in mid 2012, an efficient
management of overburden handling cost as well as favorable
weather conditions. This allowed for higher production than
planned, especially for the Trubaindo and Jorong mines.
Meanwhile, sales from the Australian coal operations were 14.3
million tonnes, slightly lower than 2011, as Mandalong mine
faced two major Longwall stoppages for planned equipment
changeover. 
The 2012 average selling price (ASP) was at USD 85.72 per
tonne, 3 percent lower than that of 2011. The decline was in
line with weakening world coal prices through the year due to an
unfavorable coal market. The ASP of Indonesian operations was
USD 90.98 per tonne, 6 percent lower than the previous year,
while the Australian operations’ ASP was at AUD 72.86 per tonne. 
Mr. Vongkusolkit added that the softening selling price and
no divestment gain (a one-off divestment gain of THB 8,246
million was recorded in 2011) lowered net profit to THB 9,293
million in 2012 or 54 percent lower than 2011. Contributions
from the power business, however, continued to provide a solid
earnings base for the group. 
“The decline in ASP for 2012 followed weakening coal prices
in the global market since the beginning of the year. This was
due to higher production levels leading to supply exceeding
demand, despite demand increasing. It is expected that coal
demand will continue to grow in 2013 especially from China,
India and Japan. The growing coal demand will reduce the level
of excess supply towards a balance by the middle of this year.
This will help improve the prices in the market,” Mr.
Vongkusolkit explained. 
In 2012, Banpu recorded an equity income of THB 2,873
million, 48 percent higher than the previous year. A strong
contribution was mainly from BLCP and coal business in China.
Banpu realized earnings of THB 2,361 million from BLCP, 21
percent higher than the previous year. The coal business in
China delivered equity income of THB 884 million, 47 times that
of 2011. Hebi mine and Gaohe mine, which officially commenced
its commercial production in the third quarter of 2012 operated
smoothly. 
Coal demand in the local market remained relatively firm
throughout the year. Banpu Public Company Limited is an Asian
energy company, managing coal and related businesses in six
countries, namely Thailand, Laos, Indonesia, China, Australia
and Mongolia. As of 31 December 2012, Banpu assets totaled THB
222,047 million, 1 percent lower than 31 December 2011. Total
liabilities were THB 133,442 million, a decrease of 2 percent
compared to those of 31 December 2011. Net Debt to Equity ratio
as of 31 December 2012 was 0.84 times compared to 0.74 times as
of 31 December 2011. 
The 2012 Earnings per Share (EPS) was at 34.19 # THB,
compared with 73.82 per share in 2011 
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