TRIS Rating Co., Ltd. has affirmed the company rating of Banpu PLC (BANPU) and the ratings of its debentures (BP064A, BP084A, BP082A, BP093A, BP109A and BP111A) at "A". At the same time, TRIS Rating has removed the rating outlook of BANPU to "positive" from "stable". The ratings reflect BANPU's capable and experienced management team, its proven record in the coal industry, its diversified base of coal reserves as well as diversification into the power business and its strong financial position. However, these strengths are partly offset by the political risk of operating in Indonesia and coal price volatility. The ratings also take into consideration BANPU's greater exposure in international markets, which have more intense competition than the domestic market.
The rating outlook of BANPU that has been changed to "positive" from "stable" reflects TRIS Rating's expectations that BANPU's financial profile will remain strong supported by favourable coal prices and management's policy to balance growth and a healthy financial position. The rating for BANPU will be upgraded in the intermediate term if the company's strong financial profile is sustainable.
TRIS Rating reported that BANPU continues to maintain its leading position in the Thai coal market, holding 39% of the market served by private operators. More than 20 years' experience in the industry enables BANPU to successfully expand its coal operations in Indonesia. Currently, BANPU ranks among the top five coal producers in Indonesia. Having a variety of coal sources as well as different grades of coal strengthens the company's competitive advantage in international markets. The company also diversified geographically by acquiring an 18.8% stake in Asian American Coal Inc. (AACI), an owner of an underground coal project in China. Based on technical studied and audits conducted by the international mining consultant companies, as of December 2004, BANPU had total coal reserves of 300.8 million tonnes (100% basis), an increase of 81% from 2003 partly due to additional reserves from the Chinese mine and an increase in coal price.
BANPU's coal production surged to 15.0 million tonnes in 2004 with Indonesian mines accounting for roughly 80% of total production. Coal sales increased to Bt17,227 million, a 38% increase from 2003. Besides the coal business, the company has investments in the power business worth approximately Bt9,000 million as of December 2004, almost 2.5 times its initial investment. The power business consists of a 50% holding in BLCP Power Ltd. (BLCP) and a 14.99% holding in Ratchaburi Electricity Generating Holding PLC (RATCH). BANPU received Bt413 million in dividends from RATCH for the 2004 operations, TRIS Rating said. -- End
Banpu PLC (BANPU) Company Rating: A Issue Ratings: BP064A: Bt2,500 million senior debentures due 2006 A BP084A: Bt500 million senior debentures due 2008 A BP082A: Bt3,000 million senior debentures due 2008 A BP093A: Bt500 million senior debentures due 2009 A BP109A: Bt2,000 million senior debentures due 2010 A BP111A: Bt1,500 million senior debentures due 2011 A Rating Outlook: Positive
The rating outlook of BANPU that has been changed to "positive" from "stable" reflects TRIS Rating's expectations that BANPU's financial profile will remain strong supported by favourable coal prices and management's policy to balance growth and a healthy financial position. The rating for BANPU will be upgraded in the intermediate term if the company's strong financial profile is sustainable.
TRIS Rating reported that BANPU continues to maintain its leading position in the Thai coal market, holding 39% of the market served by private operators. More than 20 years' experience in the industry enables BANPU to successfully expand its coal operations in Indonesia. Currently, BANPU ranks among the top five coal producers in Indonesia. Having a variety of coal sources as well as different grades of coal strengthens the company's competitive advantage in international markets. The company also diversified geographically by acquiring an 18.8% stake in Asian American Coal Inc. (AACI), an owner of an underground coal project in China. Based on technical studied and audits conducted by the international mining consultant companies, as of December 2004, BANPU had total coal reserves of 300.8 million tonnes (100% basis), an increase of 81% from 2003 partly due to additional reserves from the Chinese mine and an increase in coal price.
BANPU's coal production surged to 15.0 million tonnes in 2004 with Indonesian mines accounting for roughly 80% of total production. Coal sales increased to Bt17,227 million, a 38% increase from 2003. Besides the coal business, the company has investments in the power business worth approximately Bt9,000 million as of December 2004, almost 2.5 times its initial investment. The power business consists of a 50% holding in BLCP Power Ltd. (BLCP) and a 14.99% holding in Ratchaburi Electricity Generating Holding PLC (RATCH). BANPU received Bt413 million in dividends from RATCH for the 2004 operations, TRIS Rating said. -- End
Banpu PLC (BANPU) Company Rating: A Issue Ratings: BP064A: Bt2,500 million senior debentures due 2006 A BP084A: Bt500 million senior debentures due 2008 A BP082A: Bt3,000 million senior debentures due 2008 A BP093A: Bt500 million senior debentures due 2009 A BP109A: Bt2,000 million senior debentures due 2010 A BP111A: Bt1,500 million senior debentures due 2011 A Rating Outlook: Positive