BANPU PCL (SET: BANPU) reported its Q3 financial result on 13 November with the details as follows.
| Quarter | 3Q23 | 3Q22 |
| Net Profit (Loss) Million Baht |
2,083.58 | 17,743.98 |
| Earning Per Share (Baht) |
0.2470 | 2.6220 |
| % Change | -88.26 | |
| 9 Months | 2023 | 2022 |
| Net Profit (Loss) Million Baht |
6,626.29 | 40,797.23 |
| Earning Per Share (Baht) | 0.7840 | 6.0300 |
| % Change | -83.76 | |
BANPU reported a declining net profit of USD 59 million, decreased by $428 million or 88% YoY, resulting from a decrease in natural gas and coal prices compared to previous year that also caused a decrease in royalty fee and loss on derivative.
Coal sales of $753 million, decreased by $906 million or 55%, was a result of a decrease in average selling price by $90.97 per tonne or 48%, a decrease in sales volume by 1.16 million tonnes or 13% and a decrease in average cost of sales $5.41 per tonne or 7% YoY.
Sales from natural gas business in 3Q2023 reported at $181 million, decreased by $392 million or 68% YoY due to pausing of investment in new gas wells while focusing on efficiency improvement of current operation. As a result, the production and sales volume decreased. The gas business benefited from an increasing domestic Henry Hub gas price, driven by rising demand, while the supply remained stable.
Royalty fees reported at $83 million, decreased by $125 million or 60% YoY. The fee consisted of royalty fees from Indonesia mines $72 million, decreased by $111 million and royalty fees from Australia mines that was $11 million, decreased by $14 million that was a result of a decrease in coal quantity and selling price compared to 3Q2022.
Net loss from financial derivatives of $67 million comprised of
- Realized loss from financial derivatives of $11 million derived from natural gas swap contracts of $9 million, derivatives from gas-fired power plant in USA of $6 million, cross currency swap and interest rate swap $0.16 million, foreign exchange rate forward contract $9 million. Whereas gain on coal swap contract of $5 million, fuel swap contract of $5 million, interest rate swap contract of $2 million and electricity swaption contract of $1 .million
- Unrealized loss on fair value remeasurement of financial derivatives at the end of period of $55 million composed of derivatives from Temple I gas -fired in USA of $52 million, foreign exchange rate forward contract $3 million.
- Loss from fair value remeasurement of investment in equity instruments and debt instruments measured fair value through profit and loss of $1 million.
Furthermore, BANPU’s Sales from Power and Steam of $469 million or 32% of total revenue was from sales from CHP plant $32 million, solar power plant in China of $7 million, solar power plant in Australia of $3 million, wind power plant and solar power plant in Vietnam of $3 million and gas-fired power plant in USA of $424 million.
Sales from gas-fired power plants reported at $424 million, increased by $317 million or 298% YoY, due to the additional earnings realized from the acquisition of the Temple II gas-fired power plant in Texas, USA. The plant has already achieved commercial operation date and immediately on 10th July 2023 during the peak demand season resulting from a heatwave in Texas.
Sales from power and steam from 3 CHP plants in China of $32 million, increased by $2 million or 8% YoY result from an increase in steam demand from customers from Luannan power plant and an increase in production volume from Zhengding power plant to sale in power trading platform market during favorable price.
Sales from solar power plants in China reported at $7 million, decreased by $0.62 million or 8% YoY resulting from unfavorable weather conditions.
In addition, profit sharing from BANPU’s joint ventures and associates reported at $53 million, decreased by $38 million or 42% YoY.
BLCP of $7 million increased by $7 million. This was mainly due to an increase in operating profit of $2 million, a decrease in deferred tax expense recognition and loss on exchange rate translation total of $5 million.
Hongsa power plant and PhuFai mining in Laos of $13 million, decreased by $26 million from the maintenance shutdown of Unit 1 and a decrease in gain on foreign exchange rate translation of $5 million.
SLG power plant of $1 million, increased by $1 million from better performance resulting from higher sales volume and from entering a long-term coal supply contract with favorable price compared to 3Q2022.
Coal business in China of $ 34 million, decreased by $23 million. This was from a decrease in coal price compared to 3Q2022.
