Banpu Public : Reports Q3/2016 Results

Banpu Public Company Limited (BANPU) today announced its operating results for the third quarter of 2016 with total revenue from sales at USD 586 million (approximately THB 20,410 million), an increase of 25% QoQ. Total coal sales volume was 10.7 million tonnes, an increase of 15% QoQ due to augmented sales volume consisting of 7.08 million tonnes and 3.62 million tonnes from Indonesia and Australia mines respectively.

'Banpu's operating results in Q3/2016 reflect the company's increasingly balanced earnings in our core businesses with more revenue from coal sales compared to the previous quarter. This is due to Banpu's commitment to continually improve productivity and cost-reduction programs, in parallel with China's government policy to strictly limit the supply of coal. This allowed the average selling price of Indonesia and Australia mines to increase by 10% from the previous quarter. The increasing coal market prices in this quarter also supported the company to gain higher profit from our coal mines in Indonesia, Australia and China. In addition, the listing of Banpu Power PCL., in the Stock Exchange of Thailand in October, which gained USD 389 million of proceeds for repayment of loans, domestic and international business expansion and working capital, will enable Banpu Group to have strong cash flow and be ready to increase its equity-based power generating capacity from the current 1.9 GWe to 4.3 GWe by the end of 2025,' says Ms. Somruedee Chaimongkol, Chief Executive Officer of Banpu.

Banpu's coal business income in Q3/2016 consisted of USD 544 million from coal sales, accounted for 93 % of the total sales revenue. The USD 360 million from coal sales in Indonesia showed an increase of 25% QoQ from USD 289 million while the USD 184 million coal sales in Australia increased by 31% QoQ from USD 140 million. The average selling price (ASP) of Indonesia mines in this quarter was USD 51.35 per tonne, increasing by 11% QoQ. Australian mines' ASP is AUD 67.00, an increase of 8% QoQ as a result of sales mix changes between domestic and export sales, 65% and 35% respectively. The average domestic selling price increased since the proportion of high price contracts was more than legacy contracts.

Income from Banpu's power business reflects the company's solid operation of its power plants in China, which has a net profit of USD 4.66 million. Equity income from BLCP was adjusted lower to USD 9.1 million due to planned maintenance shutdown in this quarter. Hongsa Power Plant which is still in its early stage of full commercial operation for all the three units reported an equity income of USD 2 million. The company's sales of power, steam and others accounted for 7% of total revenue, or USD 42 million. The sales revenue of power and steam from Zhengding CHP Plant, Luannan CHP Plant and Zouping CHP Plant was USD 28.56 million. In addition, the income from the gas business in the US started to be consolidated into the group performance in this quarter with EBITDA of USD 2.7 million.

After listing on the Stock Exchange of Thailand in Q3/2016, Banpu Power reported its operating results for the third quarter with a net profit of THB 489 million, which increased significantly compared with 2015 with a net profit of THB 96 million from the commercial operations of all units of Hongsa Power Plant in Laos. Total EBITDA was THB 876 million, an increase of 36 % from THB 644 million last year.

'During the third quarter of 2016, Banpu was selected as a member of Dow Jones Sustainability Indices (DSJI) in collaboration with RobecoSAM, for the third consecutive year. This is the confirmation of the company's commitment to true business sustainability. We are on our way in fortifying all the upstream, midstream and downstream businesses of Banpu Group. This includes operational improvement and cost rationalization for our coal business to generate good return when the coal price increase is stabilized in the future, power project development of Banpu Power to reach the power generating capacity as targeted and to escalate the investment in energy solutions. Our aim is to chart a course of sustainable and balanced growth and create long-term value for shareholders and stakeholders,' Ms. Somruedee concluded.

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About BANPU
Banpu Public Company Limited is a pioneering Asian energy company, with power, coal and renewable energy businesses in nine countries; Thailand, Indonesia, China, Australia, Lao PDR, Mongolia, Singapore, Japan and the United States of America. As of 30 September 2016, Banpu's assets totaled USD 7,024 million, an increase of USD 471 million comparing with last year as of 31 December 2015.

For more information, please contact:
Kankhachee Meecharoen 02-694-6786 [e-mail]
Duangkamol Saleerat 02-694-6852 [e-mail]