Published on 19/10/2013
AGE boosts coal exports to feed plants in Asia
MAI-listed Asia Green Energy (AGE) aims at 20% growth in coal sales volume next year as it boosts exports to countries building coal-fired power plants. Managing director Panom Kuansataporn said coal sales volume is seen rising to 2.4 million tonnes this year and 3 million tonnes next year, up from 1.7 million tonnes in 2012. Countries planning new coal-fired plants include China, India, South Korea, Japan, Cambodia and Vietnam. AGE distributes coal for industrial use and provides supply chain services to makers and consumers of commodities. Mr Panom said the company expects a slight increase in coal prices to US$90 a tonne next year, up from $84 a tonne now. The global economic slowdown, especially in China, has depressed coal prices in recent years. The company predicts revenue between 5 billion and 5.5 billion baht this year, shy of its goal of 6 billion baht. Demand for coal typically rises in the fourth quarter. China has already ordered 300,000 tonnes, lifting AGE's coal export volume to 1 million tonnes from 550,000 last year. "We expect export volume, which now accounts for 40% of sales, to be bigger than domestic sales volume in the next four to five years," Mr Panom said. Construction of coal-fired power plants in Thailand faces stumbling blocks such as protests from local people, and competition has also intensified. Mr Panom said the company is studying the prospect of setting up biomass power plants, as well as negotiating to purchase a coal mine in Indonesia next year.
Net profit for the three months to September reached 13.31 million baht, down from 51.84 million baht in the same period last year. Net profit for the first nine months of the year rose to 102.34 million baht from 61.35 million baht a year ago. Shares of AGE closed yesterday on the Market for Alternative Investment at 2.42 baht, down two satang, in trade worth 6.02 million baht.