AGE expects strong Q1/2022 result driven by coal, logistics business
Asia Green Energy Pcl (AGE), a bituminous coal distributor and logistic services provider, expects Q1/2022 growth to rise continuously from the previous year, said AGE managing director for Asia Panom Kuansataporn.
Growth is supported by the rising price of coal as demand in the domestic and foreign business sectors remains strong. Revenue from coal sales in the first two months of 2022 increased by 60 per cent year on year.
Meanwhile, on the logistics side of the business, the company signed a contract worth 110 million baht to transport industrial products for the next two years. AGE also has an existing contract, signed in advance at the end of 2021, to transport three million tonnes of industrial products. This contract has a total service period of three years, starting this year.
The company plans to increase investment in logistics by adding one more warehouse. AGE currently operates five warehouses for storage services. In keeping with its strategy of boosting logistics investment, the company has increased its logistics revenue target from 4 per cent of total revenue last year to 5 per cent this year.
For 2022, the company set its target revenue from the logistic business at 2.5 billion baht, up from 2.002 billion baht in 2021. Services to AGE affiliates accounted for 76.5 per cent of logistics revenue while 23.5 per cent came from outside customers.
Meanwhile, the subsidiary AGE Agri Trading Co Ltd – which was recently established to provide, distribute and export agricultural products – is expected to realise revenue within this year.
Moreover, Panom said that At Energy Solution Co Ltd, of which AGE possesses a 49.99 per cent stock share, is starting to realise revenue from previous investment projects including retained January-February earnings of 6.14 million baht from a 5MW solar power plant in Lopburi.
As for recent progress, the company is continuously studying the possibility of investing in the energy business in line with energy policy.
At Energy Solution previously invested in a boiler-installation project and sold it to a customer in Thailand. This project is expected to realise revenue in the second half of 2022.
Hence, the company is confident that AGE’s total income this year will reach target growth of 15 billion baht, as 5 per cent of revenue will come from the logistics business and 95 per cent from the coal business. The company has also targeted sales of 6.5 million tonnes of coal.
