Analysts Give Positive Outlook on BANPU as Coal Prices Surge to Near Record High

New Castle coal prices have returned to near its record high on Friday as demand for good-old coal continues to rise amid tight gas supply in Europe trying to survive this winter without support from Russian gas.

Newcastle coal futures rose to $413.90/T on August 19, 2022, just below the record high of $432/T made a little more than a month ago on July 13.


Krungsri Securities (KSS) revised its target price for Banpu Public Company Limited (SET: BANPU) up to THB20 from THB17 per share, citing strong earnings momentum throughout 2022-23 following higher volume and selling prices.

Finansia Syrus Securities (FSS) stated that BANPU’s management reiterated their bullish view on the coal and gas price outlook in 2H22-2023. Meanwhile, the proportion of hedging losses for coal and shale gas are likely to sharply drop in 2H22 to 30-40% of reported quarterly net profit.

In addition, FSS maintained its BUY recommendation on BANPU with a target price at THB18.80 per share.

Asia Wealth Securities (AWS) expected hedging loss to decline, leading to its net profit to reflect BANPU’s real operation. The securities company maintained a positive view on coal and gas prices, especially for the remaining of 2022 due to tight supply. AWS gave a BUY recommendation with a target price at THB17 per share.