BANPU-LANNA Rebound as Coal Price Continues Uptrend

BANPU and LANNA both rebounded today (Sept. 9) following a 13-year high in coal prices of US$179 per ton.

As of 11:37 local time in Thailand, the share price of Banpu Public Company Limited (BANPU) rose ฿0.50/share or 4.10% to 12.70/share, with a trading value of 1,038 million baht.

Meanwhile, the share price of the Lanna Resources Public Company Limited (LANNA) rose ฿2.00/share or 8.70% to 25.00/share, with a trading value of 429 million baht.

According to KTBST Securities, the share prices of BANPU and LANNA surged as Newcastle coal prices reached a 13-year high on September 6. Coal prices are currently trading at US$177 a ton, and given that BANPU operates coal mines in Australia, KTBST anticipates the company will take full advantage of this situation.

At the same time, the price of Indonesian coal soared to 150 USD/ton. It’s worth noting that both BANPU and LANNA operate coal mines in Indonesia.

BANPU also gained from a boost in US natural gas prices to US$4.9, the highest level in seven years and more than twice from the end of 2Q21, as a result of Hurricane Ida in the Gulf of Mexico.

BANPU’s gas business generated 22% of EBITDA in 2Q21, therefore earnings in 2H21 are projected to be fairly solid.