SET-listed Banpu Plc set aside the budget of $210 million for potential investments from upstream to downstream this year.
Of total, it will spend $117 million on power plant business, $30 million on coal mining business and the rest $63 million on oil and gas business.
The company’s chief executive Somruedee Chaimongkol said that it keeps exploring value-added investments to sustain and balance its future revenue growth from different sources of energy businesses.
Banpu has invested in a second shale gas resource in northeast Pennsylvania, near its first shale gas resource in the United States. This new investment is expected to generate revenue this quarter.
The company’s earnings before interest, tax, depreciation and amortisation increased 15 per cent to $540 million last year. Meanwhile, it reported the net profit of $47 million in 2016, improving from the net loss of $43 million in 2015, as a result of a better balance in coal demand and supply.
“Banpu’s net profit in the fourth quarter stands out, due to the coal price adjustment from a more proportional balance of demand and supply of coal in the market,” she explained.
In 2016, Banpu’s coal sales dropped 3 per cent to 40 million tonnes, as the average selling price in Indonesia was down 10 per cent to $52.4 per tonne and in Australia was up 2 per cent to $67.3 per tonne.
For power plant business, it targets to boost its electricity capacity to 4,300 megawatts by 2025. Of that, at least 20 per cent will come from renewable-energy power plants.