BANPU TO FOCUS ON CORE BUSINESS

       Banpu, the country's leading energy firm, expects to conclude its four-year strategic plan next month, resulting in a strengthening of its core businesses by acquiring power plants and coal mines in Indonesia, Australia and China.
       The revised plan will cover the period from 2010 to 2013.
       Chief executive officer Chanin Vongkusolkit said yesterday that as a result of the global economic crisis, many multinational firms had shifted their focus to core businesses. Some of them have been forced to sell all or some of their investments in this region.
       "This is an opportunity for Banpu to acquire power plants and coal mines in the region in order to strengthen its existing power and coal-mining business," he said.
       Like other firms, Banpu has revised its strategic plan since the outbreak of the world economic crisis by focusing on its core competency rather than diversifying into other businesses.
       "We expect our revised business plan will be in line with the economic recovery," said Chanin.
       Banpu yesterday revealed a second-half net profit of Bt8.78 billion, up 101 per cent from the same period last year.
       The power business generated Bt6.47 billion and the remainder came from coal-mining.
       The company posted Bt26.56 billion in sales revenue, up 34.75 per cent from Bt19.71 billion in the same period last year.
       "The reason for posting a doubling of net profit in the first half is having booked selling prices, which were higher than those in the same period last year," said Chanin.
       In addition, he said the revenue-sharing of coal business in China was favourable, as coal prices there were still at a high level.
       Chanin said that in the first half of this year Banpu had delivered 8.6 million tonnes of coal to Indonesia. Its target for the full year is 20.5 million tonnes.
       "However, the company expects its results in this year's second half will not be as good as the first half because of lower coal prices," he said.
       He added that the earnings contribution from its subsidiary BLCP's power plant in the second half would be lower than in the first period, as it would have to stop operations for maintenance.