Amid heavy selling pressure that drove the Thai stock market index down more than 125 points intraday, the Stock Exchange of Thailand had to activate the Circuit Breaker to ease investor panic.
The SET index closed nearly 6% lower today, but amid the widespread declines, only 55 stocks ended in positive territory, including Banpu Public Company Limited (BANPU), which notably bucked the market trend with gains.
Sinn Wongkusolkij, Chief Executive Officer of Banpu Public Company Limited (BANPU). He shared insights on the factors that enabled the company to withstand market volatility and confidently forecasted a "bright" year ahead, driven by rising coal and natural gas prices.
Combined with its U.S. energy portfolio and proactive risk management strategies, Banpu today is not just a stock holding up during a crisis but an organization accelerating toward a new growth phase amid an intense global energy landscape.
Sinn Wongkusolkij, CEO of Banpu Public Company Limited (BANPU). He noted that the first positive factor boosting investor confidence is the upward trend in coal and natural gas prices.
Banpu is the only stock in the market that clearly reflects the coal business. Recently, coal prices jumped from $110-115 per ton to $130-136 per ton, with expectations that prices will remain elevated for some time.
Additionally, Banpu’s natural gas business in the U.S. benefits indirectly from global energy conditions. Its investment in natural gas operations in Texas significantly supports its stock price.
Sinn explained that reduced global energy supply has pushed up LNG and crude oil prices worldwide, indirectly boosting natural gas prices within the U.S. as well.
This aligns with the trend of U.S. oil and gas stocks—including Banpu's BKV shares listed in the U.S.—which mostly rose and did not fall in line with the broader market downturn.
Moreover, to manage price risks, the company hedged natural gas prices at $3.8-3.9 per unit for 65-70% of its volume, allowing potential gains if prices rise further.
Overall, the company expects total revenue growth outperforming last year, supported by strong and stable operations across four main business segments:
1) Modern mining, which focuses on using AI to improve efficiency and expanding into future minerals like nickel.
2) Integrated natural gas business in the U.S., emphasizing delivery of low-carbon energy alongside carbon capture and storage (CCUS) technology.
3) Electricity and related businesses, focused on developing integrated energy storage and renewable energy systems.
4) Future technologies, investing in digital technology, clean energy solutions, and AI infrastructure to build a Net Zero ecosystem.
The company plans to restructure by merging Banpu and Banpu Power into a new public company named BANPU (NewCo), expected to complete listing on the Stock Exchange of Thailand by Q3 2026.
It has set a $3 billion investment budget over the next five years targeting natural gas, power plants, carbon capture and storage, and other minerals, aiming to increase the share of clean energy in its portfolio for sustainable future growth.
Sinn added that the company remains focused on increasing EBITDA by more than 1.5 times, with over 50% of EBITDA coming from non-coal businesses by 2030.
It also aims to reduce Scope 1 and 2 greenhouse gas emissions by more than 20% by 2030. This corporate restructuring will enable Banpu to allocate capital and resources effectively while coordinating operational management, business development, and external growth.
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