We hosted a virtual roadshow for domestic investors last week. The investors were broadly optimistic about BANPU’s short-term outlook and its future growth strategies. The key topics of discussion at the meeting are summarized below:
Coal business...cash cow
The global coal market outlook is favorable, buoyed by strong demand in the face of supply tightness. Sanctions on Russian coal have boosted European demand for coal from other countries. Moreover, the high price of natural gas has been another demand driver, as consumers will tend to shift to cheaper fuels like coal. The coal demand will be seasonally stronger in 4Q22, with the approach of the winter months in the Northern hemisphere. For the supply side, the coal supply has remained tight, due to supply disruption in key producing countries such as Australia (adverse weather conditions) and South Africa (logistical constraints). Given these trends, coal prices look set to sustain high in the near-term.