UMS expects strong H2 revenue rebound

       The coal importer Unique Mining Services (UMS) expects a strong rebound in its financial performance in the second half of the year as the improving global economy pushes up coal prices and demand.
       Coal could hit US$80 per tonne in the fourth quarter, up from $75 now,said Piya Tanthanaphiphat, acting assistant managing director.
       Three months ago, coal fell to a yearlow of $63 per tonne, for coal with a relatively low heat content of 5,000 kilocalories per kilogramme.
       "If the economy sees signs of recovery, especially in the fourth quarter,industries that use coal will start to stock up again," Mr Piya told investors at a briefing at the Stock Exchange of Thailand yesterday.
       "The increase in the price of oil will also cause business operators to continue changing from fuel-oil boilers to coal boilers. We should see this shift over the next 6-12 months."
       UMS, an importer of Indonesian coal,mostly supplies local small and medium-sized companies.
       The company will enjoy a good margin on second-half sales as its current stock was purchased at lower prices earlier in the year, said Mr Piya, who heads the company's investment development department.
       UMS is also considering a 1-billionbaht joint investment in a new mine in Indonesia. The company is reviewing three possible sites, with a decision expected by the year-end.
       To help finance the investment, the company will not pay interim dividends for its first-half performance.
       UMS posted first-half revenue of 1.39 billion baht, down from 1.56 billion the same period last year. First-half net profit fell to 191.49 million baht,down from 240 million year-on-year.
       Second-quarter revenue slid to 651.45 million baht, down from 704.9 million in the same period last year. Secondquarter profit dropped to 84.3 million,down from 103.7 million year-on-year.
       But second-half revenue is expected to rise 20% from the first half to 1.7 billion baht, said Mr Piya. In any case,full-year revenue is projected at 3.1 billion baht, or about 10% less than last year.
       UMS shares closed yesterday on the Stock Exchange of Thailand at 12.80 baht, down 50 satang, in trade worth 23.686 million baht.