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Cash-flow management key to Banpu weathering global volatility

Sep 06. 2019
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By THE NATION

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Banpu Public Company Limited has said it aims to strengthen cash flow through the management of cash flow from operations, investment and financing to secure financial stability and sustain continuous growth as a “potential cushion against global market volatility”.

The company plans to cope with the volatile price of energy products by focusing more on short-term business strategies, such as cost-cutting in coal production to maintain profitability, selecting low-cost production sites and employing more efficient machinery to develop mines. 

Banpu’s subsidiaries in Indonesia, Australia and China, as well as Banpu Power Public Company Limited, are displaying “outstanding performance”, it said. 

“They have performed efficient financial management, resulting in continuous dividend paybacks. Large-scale power plants such as BLCP and Hongsa and combined heat and power plants in China have strong cash-flow management and financial status, which contribute to satisfactory dividend yields.” 

The company is meanwhile seeking long-term financial sources. It has gained strong support from various financial institutions, assuring that it has the potential to generate growth and maintain the appropriate net debt-to-equity ratio, as well as to sustain dividend payments, as in the past.

“The company has generated uninterrupted cash flow due to effective cash-flow management strategies,” said chief executive Somruedee Chaimongkol. “In particular, it enjoys continuous cash flow from operation activities in energy resources group and from investment activities in subsidiaries, which generate regular dividends. This provides us with liquidity in business operations and readiness to invest in businesses with high growth potential. 

“The strategies also support growth according to the Greener & Smarter strategy, as well as accommodate the volatility of energy prices in the global market and constant changes in the global economy. 

“We are confident that with the efficient cash-flow management, the synergy of three core groups of businesses, and the mutually beneficial business ecosystem, we can achieve sustainable growth and create long-term sustainable returns for investors and all stakeholders.”

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