By Ben Otto


Thai state-owned energy major PTT PCL will sell its Indonesian coal unit for US$471 million, marking its exit from the coal business.

The Bangkok-based company said Tuesday that it signed a deal to sell its entire investment in PTT Mining Ltd. to Indonesia's Astrindo Nusantara Infrastruktur, an energy infrastructure specialist. The move is "aligned with PTT's strategy towards sustainability and clean energy," PTT said in a statement.

The deal, which is subject to Astrindo shareholders' approval, is expected to be completed in the fourth quarter. Astrindo said in a statement that the acquisition will boost its financial performance in 2022 in line with higher coal prices.

PTT in April said that it planned to sell off its Indonesian coal mining business amid declining revenue at the unit and as the Thai company works to establish a lower-carbon portfolio.

PTT hasn't announced targets for net-zero carbon emissions, but several of its subsidiaries have goals to achieve net-zero emissions by 2050, ahead of Thailand's national goal of 2065.

Coal accounted for about 1% of PTT's total revenue in 2021, according to a company presentation in April.

PTT shares were unchanged at THB35.25 in late trading, with year-to-date losses at 7.2%.


Write to Ben Otto at ben.otto@wsj.com


(END) Dow Jones Newswires

08-02-22 0545ET