Feb. 27--Banpu Plc, the country's biggest coal miner, said its net profit last year rose 39 percent to a record 9.23 billion baht because of higher prices for coal.

The company said that its net profit, equivalent to 33.96 baht a share, compared with 6.65 billion baht (24.49 baht a share) in 2007.

Banpu, which has mines in China, Indonesia and Thailand, last year benefited from locking in contracts for coal as prices surged to a record in July before the global recession sapped energy demand. The company plans to increase output at its Chinese mines.

"Earnings growth will continue to be robust in 2009 as higher average selling prices are factored in," said Avin Sony, an analyst at ABN Amro Asia Securities in Bangkok.

"Coal sales will increase with the consolidation of its investment in China," said Mr Sony, who has buy rating on the stock.

Banpu paid $420 million in June to buy the remaining shares in Asian American Coal Inc, which holds a 56 percent stake in China's Shanxi Asian American-Daning Energy Co. Shanxi Asian has operated a mine in Shanxi province since 2006 under a 25-year concession. The mine has reserves of 88 million tonnes and produces 4 million tons a year.

Banpu said its sales in 2008 rose 56 percent to 50.5 billion baht and the average price of its coal increased 75 percent to $72 a tonne.

The company booked a loss of 1.71 billion baht from coal swap and oil hedging contracts by its unit in Indonesia compared with a 68-million-baht gain last year. It gained 383.5 million baht from foreign exchange compared with a currency loss of 361 million a year earlier.

Profit from units and affiliates was 4.95 billion baht last year, up from 4.5 billion baht a year earlier.

Power station coal prices at Australia's Newcastle port, the benchmark for Asia, reached a record $194.79 a tonne last July before tumbling to $76.33 in the week ended Feb 20.

However, Banpu expected to post a record profit for the third straight year in 2009 as it sells the fuel under the long-term contracts with higher prices, CEO Chanin Vongkusolkit said last September.

Banpu shares closed yesterday on the Stock Exchange of Thailand at 212 baht, down four baht, in trade worth 448.97 million baht.

-----

To see more of the Bangkok Post, or to subscribe to the newspaper, go to http://www.bangkokpost.com.

Copyright (c) 2009, Bangkok Post, Thailand

Distributed by McClatchy-Tribune Information Services.

For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.

BNPMF,

A service of YellowBrix, Inc.