On behalf of Energy Earth PCL (EARTH), I would like to inform our investors that despite lower coal consumption across the industry, the company has shown satisfactory financial results in terms of revenue and net profit in 2016. Early in 2016, the coal price has fallen to the USD50 per Metrics Ton representing the lowest point in the past four years. However, due to the policy to control its production imposed by China which is the World’s largest coal importer, the coal price has recovered. In parallel, the demand has also increased amid fast approaching winter as well as the rapid decline in the coal reserves, driving up the coal price even further.
In 2016, the company reported consolidated revenue of THB 18,502.56 million and net profit of THB 871.89 million which is equivalent to EPS of THB 0.248. Compared to 2015 financial results the company registered revenue of THB 16,889.15 million implying YoY growth of 9.55%, net profit of THB 1,026.93 million, implying YoY decrease of 15.10%.
In terms of cash flow and liquidity, the company still shows strong financial r atios with current ration of 1.10 times, Total liabilities to total assets of 0.67 times and total liabilities to total equity of 2.06 times.
Currently, the company has combined total reserve from 2 mines in Indonesia of 83 million tonnes. With annual sales target of 10 million tonnes, our reserve should be adequate to serve our (existing and new) clients for the next 7-8 years. In order to achieve sustainable growth, the company has explored new opportunities for coal-fired power plants both in Thailand and overseas given that the company possessed own mines. The power plant business will strengthen the overall performance and competitive advantage, which diversifies the business risks and generate more sustainability in terms of revenue and profit. The company will update investors on the development of this project.
To be the leader in sustainable business, the company always holds true to good governance and transparent management. We are also responsible for corporate social responsibilities, which we see will grow strong together with our business.
Lastly on behalf of the board of directors, I would like to thank the management and every employee for driving the performance of the company to grow and most importantly to shareholders, customers, financial institutions as well as all the business partners that continue to support the company.