Banpu Public Company Limited (SET: BANPU) reported a sharp rebound in profitability for the third quarter of 2025 (3Q25), driven by strong performances in its natural gas and power generation businesses, which offset continued weakness in coal prices.
Net profit for the quarter surged 238% year-on-year (YoY) to USD 32.65 million, an increase of USD 57 million from 3Q2024. The result underscores Banpu’s resilience and its ability to sustain healthy cash flow despite challenging market conditions in the coal segment.
Total consolidated sales revenue edged up 1% YoY to USD 1,358 million, reflecting mixed performance across its business portfolio.
Key Drivers of Profit Growth
Natural Gas Business (U.S.)
The U.S. natural gas segment was a major earnings contributor, with sales up USD 40 million (22% YoY). The improvement was supported by a 9% increase in sales volume and a 35% rise in the average local selling price, tracking higher Henry Hub benchmark prices. The surge was fueled by stronger LNG export demand and colder seasonal weather compared with 3Q2024.
Power Generation Business
The power segment also delivered solid results. China’s Combined Heat and Power (CHP) plants saw profitability improve significantly, with cost of sales down 20% YoY due to a 24% reduction in average coal cost per tonne (RMB 677 in 3Q25 vs. RMB 885 in 3Q24).
Meanwhile, U.S. gas-fired power plants reported a 22% increase in sales, supported by a 16% rise in average power tariffs, reflecting stronger demand and higher energy pricing.
Coal Business and Financial Impacts
Despite these gains, Banpu’s coal business continued to soften amid market normalization. Coal sales fell USD 145 million (17% YoY), driven by a 23% decline in the average selling price. However, cost efficiencies helped cushion the impact, with the group achieving a notable reduction in average production costs per tonne across its coal operations.
On the financial side, Banpu recorded an unrealized foreign exchange loss, reflecting the appreciation of the Thai Baht against the U.S. dollar. Additionally, income tax expenses jumped 109% YoY, mainly due to a higher deferred tax liability recognized during the period.
