Banpu rules out new investment in Indonesia
Banpu rules out new investment in Indonesia
Wilawan Pongpitak, Reuters, Bangkok
Thailand's biggest coal miner Banpu Plc has no plan to invest
in a power plant in Indonesia, but will focus on its main coal
business and domestic power plants, company executives said late
on Friday.
Their comments came in the wake of a statement last week by
Indonesia's South Kalimantan provincial governor who said the
province was seeking cooperation with Banpu to build a 130
megawatt coal-fired power generator.
"We have no plan to invest (in power business) in foreign
countries. We want to focus in Thailand, where we have
experience," Chief Financial Officer Somruedee Chaimongkol told
reporters.
Banpu Chief Operating Officer Rawi Corsiri said Banpu, which
has a majority stake in six coal mines Sumatra and Kalimantan,
Indonesia, is a major coal supplier of Kalimantan's existing
power plant.
"In the short term, chance are slim because we think
electricity demand in Kalimantan is quite low. But for the long
term, we have to study more," Rawi said.
Banpu has three mines in the north of Thailand. Including coal
mines in Indonesia and has total production capacity of 13.4
million tons this year.
Revenues from coal account for 90 percent of total, and the
rest from power business.
Last month, Banpu said it expected revenues to grow to 13-14
billion baht (US$300-$323 million) this year from 5.2 billion
baht in 2001, mainly due to increase in sales in its investment
in Indonesia's Indocoal, in which Banpu has a 95 percent stake.
On Friday, Banpu shares closed down 0.56 percent at 44.00
baht, while the overall Thai stock market was down 1.25 percent.
Banpu, which recently diversified itself into power business,
said it was also studying the possibility of refinancing its
debts to reduce costs and boost efficiency.
Banpu has stakes in various power plants in Thailand and
neighboring countries with combined capacity of 1,473 megawatts.
These include a 37.50 percent stake in Tri Energy, 50 percent
stake in BLCP Co, 14.6 percent stake in Ratchaburi Electricity
Generating Plc and a power plant in Vietnam.
Rawi said Banpu may dilute its stake in the 1,400-megawatt
BLCP to 30 percent from 50 percent, but gave no further details.
He said Banpu plans to invest $50 million to expand coal mine
and power businesses this year, and it was considering buying
domestic coal-fired power producers.
Banpu is in the process of buying a 143-megawatt power plant
belonging to Thai Petrochemical Industry, estimated to be worth
$100 million.
In a bid to reduce its costs, Somruedee said Banpu was
considering possibility to issue bonds and seek domestic loans to
refinance its 1.0 billion baht debt and a $250 million debt of
its unit Tri Energy, which operates a 700-megawatt gas turbine
power plant.
Somruedee said Banpu would make a final decision whether it
would go ahead with the refinancing plan by the middle of 2002.