Thailand: Asia Green's Q3 profit down

Thailand: Asia Green's Q3 profit down

SET-listed coal trader Asia Green Energy (AGE) posted a smaller profit in
the third quarter although the glut in global coal supply has bottomed out
and prices have started to rebound.

Chief executive Panom Kuansataporn said the company sold 660,000 tonnes of
bituminous coal in the third quarter of 2016, generating 1.34 billion baht
in revenue, down by 6.8% year-on-year.

Net profit in the third quarter stood at 17.5 million baht, down by 75% from
the same period of 2015 when it posted a net profit of 72.9 million baht.

For the first nine months of this year, the company sold 1.65 million tonnes
of coal, with 3.14 billion baht in total revenue, an 11.9% drop from the
same period last year when total revenue reached 3.56 billion baht. Net
profit in the period was 60.7 million baht, down 43% from 107 million
year-on-year.

"In the third quarter, there were signs that the coal business was starting
to recover. Global coal prices also hit their lowest and have started to
rebound, and that's why we're revving up our marketing plans in the both the
domestic and overseas markets in order to sell more coal to related
industries this year," said Mr Panom.

He said the company is continuing to cut production and logistics costs in
order to boost efficiency and competitiveness.

The coal business is categorised a sunset industry since prices started to
fall over the past few years, hitting a record low of US$46 a tonne in 2013.
ICE Newcastle coal price for November delivery was $111.4 a tonne yesterday.

Mr Panom said rising demand at a time when coal prices are picking up should
help support 10% sales growth, or 2.2 million tonnes, this year as planned.
He said the company would tap an expected rise in orders from China and
Vietnam.

AGE shares closed yesterday on the SET at 1.58 baht, down five satang, in
trade worth 18.2 million baht.

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Link to Original Article:
http://www.bangkokpost.com/business/news/1132381/asia-greens-q3-profit-down

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com