Banpu Climbs on Share Buyback, Cash Dividend: Bangkok Mover

Banpu Pcl (BANPU), Thailand’s biggest coal producer, rose the most in two months in Bangkok trading after announcing a 6.15 billion baht ($206 million) share buyback and maintaining its dividend payment amid a fall in profit.

The shares jumped 3.7 percent to 392 baht as at 11:58 a.m. local time, the most since Dec. 17. The stock was the biggest gainer in the MSCI Emerging Markets Index (MXEF), which slid 1 percent.

Bangkok-based Banpu, which has mines in Indonesia, China and Australia, plans to repurchase about 13.56 million shares, or about 5 percent of its stock outstanding, it said today in a statement. The company also maintained its final cash dividend of 9 baht a share, unchanged from a year earlier, even after reporting a 54 percent drop in full-year profit.

“The share buyback and cash dividend has significantly boosted investors’ sentiment on Banpu’s shares after a weak earnings report,” Rutsada Tweesaengsakulthai, an analyst at Phillip Securities (Thailand) Pcl, said by phone today.

Net income in 2012 slumped to 9.29 billion baht from 20.06 billion baht a year earlier, as a drop in coal prices lowered profit margin, Chief Executive Officer Chanin Vongkusolkit said in a separate e-mailed statement. The decline in earnings last year was also compounded by the 8.25 billion baht one-time gain in 2011, Banpu said in the statement.

Banpu’s shares have fallen 4.9 percent this year, compared with a 10 percent advance in the benchmark SET Index. (SET)

To contact the reporter on this story: Anuchit Nguyen in Bangkok at anguyen@bloomberg.net

To contact the editor responsible for this story: Darren Boey at dboey@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.