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.