Asia Green to sell more coal

       Asia Green Energy Plc (AGE) aims to increase its coal sales by 20% to 1 million tonnes this year, given the global economic rebound and a price gap that could encourage industrial operators to switch from fuel oil to coal for energy,said assistant managing director Somyos Thitisuriyarux.
       But the SET-listed coal importer and distributor said yesterday that in the worst case its turnover could slip by 10% this year from 2.35 billion baht in 2008, with net profit sliding in line with coal prices down from 123 million baht last year.
       In the first six months of 2009, AGE's revenue increased 15% year-on-year to one billion baht as coal from Indonesian mines rose 14.6% by volume to 414,072 tonnes. But net profit sank from 68 million baht to 39 million as the margin shrank 8% year-on-year.
       Coal prices have stabilised between US$60 and $70 per tonne since the past quarter, or 2,600 baht as quoted locally,while crude has risen steadily to $70,said Mr Somyos. With fuel oil now at 13-14 baht a litre, it is 40% more expensive than coal, he said.
       "Last year,7% of 30,000 boilers at industrial plants nationwide were modified from fuel oil to coal to save about 30%. As the gap has widened, we expect more and more industrialists to switch to coal this year," he said.
       AGE's customers are up to 520 from 500 at the end of last year, with the energy sector climbing to contribute 24%of sales volume, while food provides 29%, textiles 23% and paper 14%.
       "We have remained on track to boost sales from 840,000 tonnes in 2008 to 1 million tonnes this year. Many sectors,including energy, have placed more orders but several were made for restocking," said Mr Somyos.
       Although the global economic picture in the second half is unclear, without unexpected incidents the economy could steadily improve both locally and globally.
       But AGE's sales revenue for 2009 will not be as good as projected earlier, when 20% growth was considered possible,he said. Coal prices are expected to stay between 2,500 and 2,800 baht this year,compared with 2,800 to 3,200 baht last year, due to the sluggish world economy in the first half.
       "After getting the financial results of the first half, we are now anticipating that revenue could vary by 10% plus or minus from the 2008 figure," said Mr Somyos.
       Next month, AGE will start operating its fourth warehouse in Si Racha in Chon Buri, with storage capacity of 10,000 tonnes of coal. The new facility will contribute to revenue from the fourth quarter onward. Currently,14% of its customers are in the eastern region, he said.
       Shares of AGE closed yesterday at 6.30 baht, unchanged, in trade worth 1.72 million baht.