Higher Sales in Natural Gas and Coal Lead to a Turnaround in BANPU’s 2Q21 Earnings

Banpu Public Company Limited (BANPU) has announced its 2Q21 consolidated financial statement through the Stock Exchange of Thailand as follows;

BANPU reported a net profit of 1,325 million baht, compared to a net loss of 2,514 million baht in the same period last year. This was due to an increase in coal and natural gas prices that affected better group performance overall, also the recognition of gain on the foreign exchange rate from depreciation of THB currency against USD currency.

 

BANPU stated that although worldwide economics have been impacted by the Covid-19 pandemic and affected the global economy and the demand of global energy consumption, the group still maintained stable business operations compared to 2Q20.

Furthermore, the group has also continuously focused on cost management and production efficiency to cope with the uncertainty of the global economy and volatility of energy commodities prices in the future.

 

Coal sales of $587 million, increased by $134 million or 30% was a net result of an increase in average selling price by $20.92 per tonne or 39%, whereas a decrease in sales volume by 0.61 million tonnes and an increase in the cost of sales by 3% compared to 2Q20.

 

Meanwhile, sales from the natural gas business in 2Q21 reported at $160 million, increased by $149 million compared to 2Q20. This was mainly from sales recognition from Barnett shale that the group acquired in 4Q20.

 

Sales from power, steam and others from 3 CHP plants in China of $27 million, decreased by $6 million compared to 2Q20, mainly from decreasing in sales volume of electricity and steam.