PT Banpu Plc said that its Indonesian coal output will fall short of its 2011 target of 25 to 26 million tonnes after a long rainy season and delays of shipment deliveries curbed volume in the second quarter.
Mr Chanin Vongkusolkit CEO said that sales of Indonesian coal missed the target of 6.2 million tonnes for the second quarter as heavy rain affected production and delayed deliveries at ports. This will result in as much as 500,000 tonnes of output and sales losses for all of 2011 from the company's total projection of 42 million tones even though Australian production would make up for some of the Indonesian losses.
Mr Chanin added that "We've seen sales volume for the year falling short of our original target. It will be around 24 million tonnes."
However, Banpu has maintained its revenue target of THB 90 billion this year, thanks to strong coal prices.
Mr Chanin said that "We are confident that Banpu's average selling prices this year will exceed USD 90 per tonne." He also said Banpu planned to issue debentures worth 10 billion baht by the end of second quarter or early third quarter to refinance debt at lower interest rates.