BPP’s 3Q21 Earnings Slip 29% to THB597 Million Due to Lower Profit from Operations

Banpu Power Public Company Limited (BPP) has announced its 3Q21 consolidated financial statement through the Stock Exchange of Thailand as follows;

BPP reported net profit for 3Q21 at THB 597 million, decreased by THB 248 million or 29% compared to 3Q20. This was mainly due to a decrease in profit sharing from BLCP power plant from recognition of deferred tax expense and unrealized loss on FX translation. Furthermore, there was a decrease in profit sharing from SLG power plant that has already started commercial operation with effect from higher coal cost. There was also a decrease in China CHPs performance from plant optimization amid the impact from the higher domestic coal cost.

Sales reported at THB 1,048 million, increased by THB 76 million or 8% compared to 3Q20. The main increase was from higher steam sales and others from CHP plants in China, also from a depreciation of THB currency against RMB currency.

Profit sharing from joint ventures and an associate decreased by THB 177million compared to 3Q20.

Cost of sales was THB 1,189 million, increased  by THB 309 million compared to 3Q20 from: 1. An increase of coal cost THB 257 million. Although production volume was decreased aligned with power sales volume. The average cost of coal, which is the main fuel, was higher. Average coal cost was RMB 920 per ton (3Q20: RMB 543 per ton), increased by RMB 377 per ton or 70% compared to 3Q20.

2. The effects of foreign exchange rate translation of THB 52 million due to a depreciation of THB currency against RMB currency compared to 3Q20. This impacted the higher cost of sales in THB currency when converting from cost of sales in RMB currency. Average  exchange rate of RMB/THB in 3Q21 was THB 5.0954 (3Q20: THB 4.5339).