Banpu Public Company Limited

Banpu Public Company Limited, or BANPU, is pressing ahead with expanding its energy trading capabilities in Japan's power market through Banpu Power Trading G.K. by applying AI technology to support power trading decisions. Banpu has developed AI models that combine the knowledge and experience of traders with analysis of market data and energy price trends, to help assess trading opportunities, determine trade sizes and manage risk, alongside raising the level of energy trading expertise within its power and related businesses group, or Power+. Two models have been developed. The first analyzes data to assess energy price direction and identify trading opportunities, while also gauging the confidence level of each signal. The second assesses overall market conditions to choose an approach and set trade sizes in line with the situation. Both models passed simulated power trading tests between January and March 2026, using historical data from Japan's power market for analysis, and were able to produce better results than conventional trading methods. At present, Banpu applies its AI models alongside traders to trade power in Japan's energy market, accounting for more than 90% of the company's total power trading volume across 6 regions. Traders remain the ones who review the AI's recommendations and make the final decision before any actual trade is executed. Niti Pitakteeratham, Country Head for Japan at Banpu Public Company Limited, said that bringing AI models in to support power trading does not mean technology will replace people, but rather that AI is being used to enhance traders' capabilities, especially in analyzing large amounts of data and assessing complex situations. At the same time, Banpu also has a plan to study the feasibility of extending its AI models to power trading markets in other countries, as well as to other business groups, to strengthen the competitiveness of both the organization and its personnel and to support the long-term growth of its energy business.

Yuanta Securities issued an analysis stating that Banpu Public Company Limited, or BANPU, is likely to remain on a solid footing in the second half of 2026 across all three core businesses, supported by seasonal factors, inorganic growth from additional investment expansion in the Barnett field, and higher sales volumes following the easing of Indonesia's export control policy. Yuanta expects profit momentum in 2027 to grow compared with the previous year, or year on year, outperforming the sector average, which is slowing from a high base, as coal prices are expected to stay elevated due to El Nino and disruptions from the Middle East, while the gas business benefits from data centers and the expansion of LNG production capacity. In 2027, coal prices are expected to remain at high levels due to gas-to-coal switching, because restoring LNG supply in the Middle East will take time, with additional support from El Nino starting in late 2026. Over the medium to long term, the US closed-loop gas business is seen as benefiting from the expansion of the data center industry, which is regarded as structural gas demand. Yuanta recommends a buy rating with a fair value of 19.00 baht, based on a positive view of the coal and natural gas businesses, growing profit momentum in 2027, and a valuation that is still not expensive.

The research team at Asia Plus Securities said that in the fourth quarter of 2026, the Thai capital market has an interesting issue arising from CAPPED WEIGHT index rebalancing. The SET50 index has a rule capping any single stock's weight at no more than 10%, creating a MEAN REVERSION phenomenon: when large-cap stocks decline in price, their FLOATING WEIGHT falls, for example DELTA dropping from 10% to 7.28%. When the end-of-quarter REBALANCE arrives, PASSIVE FUNDs must buy the stocks that fell heavily to top their weights back up to 10%, and sell stocks that have risen or whose weight exceeds 10%. The research team calculated the 10 stocks that will be added to in the fourth-quarter 2026 round, with DELTA benefiting the most from the top-up back to 10% from 7.28%, followed by MRDIYT, MINT, THAI, TFG, BANPU, ADVANC, CPN, CPALL and AOT. This group is expected to see price support from PASSIVE FUND money flows before October.

Banpu, or BANPU, announced the successful acquisition of upstream, midstream and carbon capture and storage (CCS) assets in the Barnett natural gas field in the United States through BKV Corporation, a US energy company in which Banpu holds a majority stake. The move underscores BKV's role as the largest natural gas producer in the Barnett field and one of the 15 largest natural gas producers in the United States. The new assets comprise natural gas production capacity of approximately 65 million cubic feet equivalent per day, of which more than 50% is liquid hydrocarbon production, with proved developed producing reserves of approximately 0.35 trillion cubic feet equivalent, covering an area of roughly 117,000 acres, mostly in Montague County, Texas, along with about 1,000 natural gas wells. They also include midstream infrastructure: a natural gas processing plant with capacity of 180 million cubic feet per day, 340 miles of gas pipelines, a 225-mile water management system and two saltwater disposal wells. The assets also include an operating CCS project that captured more than 100,000 tonnes of carbon dioxide over the 12 months to the first quarter of 2026, along with a carbon pipeline and underground injection wells. The entire transaction was funded by BKV's cash together with borrowings under a revolving credit facility. Sinnath Vongkusolkit, Chief Executive Officer of Banpu, said the acquisition marks another important step in disciplined growth to expand its integrated natural gas platform in the United States.

Yuanta Securities raised its Dubai crude oil price assumptions for 2026-2027 to 90 dollars per barrel from 85 dollars per barrel, and to 75 dollars per barrel from 70 dollars per barrel, respectively, after Middle East tensions dragged on longer than previously expected, with the situation having been expected to gradually ease in the second half of 2026. Instead, tensions re-escalated from early September after the United States and Iran resumed attacks on each other following a ceasefire that had held since July, and the conflict also spread to Saudi Arabia and the Houthi group, which attacked refineries and the East-West Pipeline that carries roughly 4-5 million barrels per day, or 4-5% of global supply. Saudi Arabia said it could restore partial operation of about 50% within the next few days, but a full return to capacity may take around six weeks. The research team raised its 2026-2027 net profit forecasts for PTTEP by 5-12% to 77 billion baht and 72 billion baht, respectively. It maintained its investment weighting for the energy sector at "equal to market" and sees upstream energy stocks PTT, PTTEP and BANPU as the main choices for investment at this time, with BANPU as the top pick with a "buy" rating and a fair value of 19.00 baht, driven by its gas business in the United States, which is supported by the data center industry, and its coal business, which benefits from demand substituting for LNG in a region strained by war. Meanwhile, risk-averse investors can invest in PTT with a "buy" rating and a fair value of 45.00 baht, based on its integrated business with lower volatility and consistently high dividend payouts.

Banpu Public Company Limited, or BANPU, is set to benefit after BKV, in which BANPU holds a 63.3% stake, announced the closing of a transaction to acquire new upstream, midstream and carbon capture and storage assets in the Barnett Shale natural gas field in Texas, United States. The deal was funded with BKV's cash together with borrowings under a revolving credit facility, though the transaction value was not disclosed. The acquired assets have production capacity of about 65 million cubic feet equivalent per day, of which more than 50% is liquid hydrocarbons. Proved and producing reserves stand at approximately 0.35 trillion cubic feet equivalent, covering roughly 117,000 acres, with about 1,000 producing wells, a gas processing plant with capacity of 180 million cubic feet per day, a gas pipeline system of about 340 miles, and a CCS project capable of capturing and storing roughly 100,000 tonnes of carbon dioxide per year. Compared with BKV's current gas production of 978 million cubic feet equivalent per day, this represents about 6.6% of its existing production base. The US gas business accounted for about 24% of total EBITDA in 2025. Asia Plus Securities therefore maintained its fair value for BANPU at 17 baht per share and recommended gradually accumulating the stock on weakness to capture the expected second-half 2026 earnings trend, which is forecast to be better than the first half on seasonal factors.

Banpu, or BANPU, has announced a push into two new businesses: energy for data centers and liquefied natural gas trading. CEO Sinon Vongkusolkit said the Banpu group will leverage its strengths from its natural gas base in the United States and its business networks in both the United States and Asia to expand into new forms of energy. BKV Corporation, a subsidiary listed on the New York Stock Exchange, has begun developing Modular Gas Engines as a power source for data centers in the United States in the first phase, aiming to accelerate the delivery of stable, flexible, and continuous power within one to two years before connecting to the grid over the longer term. BKV is currently in talks on long-term power purchase agreements with AI service providers and large data center operators in the United States. Meanwhile, Banpu has 10 battery energy storage system projects across four countries, namely Japan, Australia, the United States, and China, with total storage capacity of about 2.3 gigawatt-hours. For its LNG trading business, Banpu plans to use its natural gas production base in the United States, which has output of about 1 billion cubic feet per day, connected by pipeline to the Gulf of Mexico coast, to expand into LNG trading and link U.S. gas to Asian markets, including Thailand, Indonesia, South Korea, and Japan. It estimates that LNG prices will return to an equilibrium level of about 8 to 12 U.S. dollars per MMBtu over the long term.

Banpu, or BANPU, has announced it is moving forward with expanding its natural gas and power business portfolio, aiming to increase the combined cash flow contribution from these two businesses to more than 50%, from the current level where coal generates about 50% of cash flow, natural gas 25%, and power 25%. Chief Executive Officer Sinon Vongkusolkit stated that the integrated natural gas business group in the United States through BKV Group will be a key mechanism driving growth, while also pushing Carbon-Sequestered Gas solutions that cover greenhouse gas emissions management across Scope 1, 2, and 3 through CCUS technology. In the LNG market, the company views the price level of 20 US dollars as unsustainable and expects a return to an equilibrium level of approximately 8-12 US dollars. At the same time, the company is accelerating the expansion of its battery energy storage system, or BESS, business in the United States, Japan, China, and Australia to meet the surging electricity demand from AI and data centers. In the United States, a 100 MW BESS project is under construction and is expected to be completed in about one year. In China, there are plans to invest further in both renewable farm and BESS projects from late this year to early next year. In Thailand, the company is ready to expand immediately if the government opens bidding for BESS projects.

Banpu Public Company Limited, or BANPU, presented its integrated natural gas business in the United States, known as U.S. Closed-Loop Gas, at Gastech 2026 under the concept The Future Flows Circular, linking operations from natural gas production, midstream business infrastructure and power generation through to carbon capture, utilisation and storage, or CCUS. The platform is driven through BKV Corporation, or BKV, an energy company in which BANPU holds a majority stake and one of the top 15 natural gas producers in the United States, as well as the largest producer in the Barnett gas field in Texas. BKV currently has upstream natural gas reserves, combined cycle gas turbine, or CCGT, gas-fired power plants with total generating capacity of 1.5 gigawatts in Texas, and three carbon capture and storage, or CCS, projects already in operation: Barnett Zero, Cotton Cove and Eagle Ford. It aims to increase its carbon dioxide storage rate to approximately 1.5 million tonnes per year by 2028. BANPU said demand for natural gas in the United States is likely to rise by about 25% by 2030, while electricity demand in Texas's deregulated power market, ERCOT, is expected to increase more than 21-fold by 2032. Given these trends, BKV is pressing ahead with the development of an Integrated Energy Complex in Jack County, Texas, on an area of more than 6,200 acres, and has already filed for approval to connect to the grid to support both power generation and consumption. Sinon Vongkusolkit, Chief Executive Officer of BANPU, said the integrated natural gas business in the United States is one of the key mechanisms driving BANPU's growth through its Carbon-Sequestered Gas, or CSG, solution, a carbon-neutral natural gas covering Scope 1, 2 and 3 greenhouse gas emissions.

Asia Plus Securities said the Barlow Jonker Index, or BJI, reference coal price stood at 150.01 dollars per tonne on September 11, 2026, up 5.36 dollars per tonne, or 3.71%, from the previous week. The average since the start of 2026 to date is 130.40 dollars per tonne, up 23.59% from a year earlier. The supporting factor comes from higher demand in India after stockpiles at many power plants fell to critical levels. As of September 6, the number of power plants with critically low stockpiles rose to 58 from 45 earlier in the month, while coal volumes in India remain tight due to the impact of monsoon rains. There is also demand from China, Vietnam and South Korea, which are rushing to stockpile coal for winter power generation, along with the expansion of the AI and data center industries, as well as the sharp rise in oil and LNG energy prices caused by the conflict in the Middle East that has affected shipping routes through the Strait of Hormuz. The research team recommends trading the coal group in line with price direction and assesses BANPU's fair value for 2027 at 17.0 baht per share, with a buy recommendation, based on second-half 2026 earnings that are expected to grow from the first half of 2026 on higher coal production volumes and selling prices expected to hold steady at a good level.

Banpu Next, part of Banpu Public Company Limited, is expanding its Net Zero advisory services to help Thailand's manufacturing and export industries manage their carbon footprints and cope with increasingly stringent sustainability regulations from overseas trading partners. The company said Thai manufacturers and exporters are facing pressure from the European Union's carbon border adjustment mechanism, or CBAM, and carbon taxes in many countries, which directly affect production costs, as well as the ESPR regulation requiring products in the EU to have a Digital Product Passport, or DPP, and policies from international partners requiring disclosure of greenhouse gas emissions throughout the supply chain. In Thailand, the Stock Exchange of Thailand is encouraging listed companies to disclose ESG information in line with international sustainability reporting standards and to take part in the SET ESG Ratings assessment. Banpu Next's advisory services cover assessment and preparation of corporate carbon footprint, or CFO, and product carbon footprint, or CFP, reports covering Scope 1 to 3, carbon credit registration, monitoring and management of carbon through a digital platform, carbon reduction guidelines, and preparation of sustainability reports in line with international standard frameworks. Somthiporn Sestapramote, Chief Executive Officer of Banpu Next Company Limited, said carbon regulations and international sustainability standards are changing the direction of business operations in the export manufacturing sector and many other industries worldwide. Banpu Next currently provides Net Zero advisory services on an ongoing basis to clients across a range of industries, including manufacturing and export groups, educational institutions, and airport ground services businesses.

The extraordinary shareholders' meeting of Banpu Public Company Limited (BANPU) has approved the payment of an interim dividend from retained earnings as of July 31, 2026, at a rate of 0.40 baht per share. The record date for shareholders entitled to receive the dividend is set for September 14, 2026, with the dividend payment scheduled for September 25, 2026. Additionally, the meeting approved the issuance and offering of debentures in an amount not exceeding 80 billion baht.

Yuanta Securities noted that BANPU reported a net profit of 1.8 billion baht for 2Q26, up 11% from the pre-amalgamation figures, supported by its Next-Gen Mining and US Closed-Loop Gas businesses. The 1H26 profit accounts for 44% of the full-year estimate of 6.5 billion baht. Momentum is expected to accelerate in 4Q26, driven by restocking demand and efficient gas price hedging. Currently, BANPU has hedged 70% of its 2026 gas production at an average price of US$3.8-3.9 per mmbtu, compared to the current price of US$2.9 per mmbtu. Additionally, the company is in negotiations for long-term power purchase agreements with data center groups and is studying a New Energy Complex project on 6,000 acres of land, which could add approximately 200 MW to Temple I&II and potentially lead to a new power plant of similar size at ±700 MW. Clarity is expected by early 2027. The stock is supported by a 1H26 dividend of 0.40 baht per share, yielding 2.7%, with the ex-dividend date on September 11, and a base price of 19 baht.

Brokers expect BANPU to post continued profit growth in Q3/2026, driven by higher coal sales and prices remaining at elevated levels, with a "Buy" recommendation and a target price of 17 baht. Analysts at Asia Plus Securities noted that pro forma financials after the merger for Q2/2026 showed net profit up 63% quarter-on-quarter to 1.7 billion baht, while the first half of 2026 still recorded a normal loss of 636 million baht, but improved from a loss of 1.8 billion baht in the same period last year. The research house maintains its 2026 normal profit forecast at 3.5 billion baht, up 341.8%, supported by higher energy prices due to the war and the integrated natural gas business in the U.S., which benefits from increased gas and electricity demand driven by AI and data center growth. For Q3/2026, normal profit is expected to grow further, supported by higher coal sales volumes after Indonesian mines pass the rainy season and average selling prices staying at high levels, while the U.S. gas business also gains from seasonal demand, although the power business may decline from the recent peak. The fundamental value at end-2027 is 17 baht, with an interim dividend of 0.4 baht per share, representing a yield of 2.8%.

Banpu Public Company Limited (BANPU) has announced a major corporate repositioning through its Energy Symphonics strategy to support the growth of hyperscalers and data centers for AI. The strategy leverages the strengths of its four core business groups: natural gas business in the U.S. through its subsidiary BKV, which targets production capacity of 960 million cubic feet equivalent per day by 2026 and will install CCUS technology to capture 1.5 million tons of carbon per year by 2028; modern mining business focusing on strategic minerals such as nickel and bauxite; integrated power business combining CCGT power plants with renewable energy and energy storage systems; and future technology business investing through corporate venture capital in AI startups and net-zero solutions. This strategy aims to lay the foundation to address the energy transition and the growth of the digital world.

Banpu Public Company Limited, or BANPU, has unveiled its five-year business plan, targeting EBITDA growth of 1.5 times compared with 2023 and aiming for more than 50 percent of EBITDA to come from non-coal businesses by 2030. The company has set a capital expenditure budget of more than 3 billion dollars, with about 60 percent allocated to the natural gas business and BKV, and the remaining 40 percent to mining and power. Chief Executive Officer Sinon Vongkusolkit said the company will drive growth through four core business groups: integrated natural gas in the United States, modern mining, power and related businesses, and future technology. In 2026, the company targets natural gas production of 960 million cubic feet equivalent per day, up from 836 million cubic feet equivalent per day last year, and is negotiating long-term power purchase agreements with large data center operators for the Temple I and II power plants. It also targets carbon storage of 1.5 million tonnes of carbon dioxide equivalent per year by 2028 through BKV. In the power business, there are 10 battery energy storage system projects totaling 2,340 megawatt-hours by 2027, and the company is confident that 2026 operating results will grow better than the previous year thanks to still-strong commodity prices.

Banpu has announced its Energy Symphonics strategy following the merger with BPP, aiming to elevate itself into an integrated energy platform through four core business groups: a full-cycle natural gas business in the United States, next-generation mining, power and related businesses, and future technologies. The company targets natural gas production of 960 million cubic feet equivalent per day in 2026, up from 836 million cubic feet equivalent per day in the previous year. It is also developing the Temple I and II gas-fired power plants with a combined capacity of 1.5 gigawatts, along with a new project in Jack County, Texas, on more than 6,000 acres. Banpu aims to sequester 1.5 million tonnes of carbon dioxide equivalent per year by 2028 through BKV. Meanwhile, the company has a total of 10 battery energy storage system projects with combined capacity of 2,340 megawatt-hours by 2029, including the Megamount project with 200 megawatt-hours of capacity as its first BESS project in the United States, and the Woori project with 1,400 megawatt-hours in Australia. Chief Executive Officer Sinnamon Vongkusolkit said Banpu is ready to design and connect energy systems that support demand from hyperscalers and the AI economy, while extending investments in strategic minerals such as nickel and bauxite, and AI technologies through corporate venture capital.

Krungsri Securities maintains a buy recommendation on BANPU, with a 2027 target price of 17.0 baht per share, based on a continued recovery trend in 2026 to 2028, when net profit is expected to grow at an average of 68% per year. The natural gas and power plant business in the United States will benefit from rising electricity demand from data centers and the expansion of LNG export capacity. Management expects negotiations on power purchase agreements with major cloud service providers to progress by early 2027. The company aims to increase EBITDA by 1.5 times by 2030 and raise the share of clean energy business to more than 50%, from about 28% in 2023. It plans to expand power generation capacity in the United States by another 200 to 1,200 megawatts and grow its carbon capture business to 1.5 million tonnes per year by 2028, from about 0.4 million tonnes per year currently. For the coal business, the company targets 2026 sales of about 43 million tonnes, up from about 40 million tonnes in 2025, supported by demand for coal as a substitute for natural gas and the impact of the Middle East war on Qatari LNG supply. There is also upside risk to the target price of about 1.2 baht per share from the expansion of power generation capacity in the United States.

Dao Securities maintained its 2026 target price for BANPU at 14.80 baht per share after attending an analyst meeting. Management said the amalgamation between BANPU and BPP was completed on 31 July 2026, with a dividend payment of 0.4 baht per share planned for 25 September 2026. The company expects coal production volumes in Indonesia and Australia to rise quarter-on-quarter in the third quarter of 2026, driven by higher production efficiency at Australian mines, and has set a natural gas production target of 940 to 960 million standard cubic feet equivalent per day in 2026. Dao Securities kept its 2026 and 2027 net profit forecasts at 2.4 billion baht and 2.8 billion baht respectively, compared with a loss of 2.0 billion baht in 2025, and sees average coal selling prices likely supported by ongoing war in the third quarter of 2026, while average natural gas selling prices are expected to be stable quarter-on-quarter.

Banpu has announced a growth strategy for its four core businesses, with a target to expand its carbon capture, utilization and storage, or CCUS, business to 1.5 million tonnes of carbon dioxide equivalent per year by 2028. Chief Executive Officer Sinfon Vongkusolkit said the company will reshape its business portfolio to connect energy resources, power generation, renewable energy, energy storage systems, and technologies and infrastructure supporting the growth of artificial intelligence and data centers under the Power-to-Compute concept. In 2026, CCUS projects preparing for commercial operation will add combined capacity of 122,000 tonnes per year, comprising the Cotton Cove project at 32,000 tonnes per year and the Eagle Ford project at 90,000 tonnes per year. In 2027, the East Texas project will add another 70,000 tonnes per year. Currently, the CCUS business in the United States receives a tax credit of 85 dollars per tonne, with total carbon dioxide injection volume of about 300,000 tonnes per year, and each project's margin is around 30 to 40 percent. In the energy and clean energy business, the company is preparing to begin commercial operation of the 120-megawatt Jinfeng Qianfeng solar power plant and the 20-megawatt-hour Jinfeng Qianfeng energy storage system in the third quarter of 2026.

Poonpong Naiyanapakorn, Director-General of the Department of Business Development under the Ministry of Commerce, revealed an analysis of business registration in July 2026, showing 7,512 newly established businesses, a decrease of 467 or 5.85% from June 2026. Registered capital for new businesses stood at 53.647 billion baht, up 38.416 billion baht or 252.23% from the previous month. One juristic person had registered capital exceeding 1 billion baht: Banpu Company Limited, with registered capital of 40.496 billion baht, operating in the energy sector. In the first seven months of 2026, there were 52,285 newly established businesses, up 737 or 1.43% from the same period in 2025. Cumulative registered capital for new businesses was 164.848 billion baht, down 6.31 billion baht or 3.69% year-on-year. Regarding foreign investment in Thailand under the Foreign Business Act of 1999, in the first seven months of 2026, 736 foreign investors were granted permission to invest and operate businesses in Thailand, up 153 or 26% from the same period in 2025. Total investment amounted to 219.208 billion baht, up 59.748 billion baht or 37% from 159.46 billion baht in the same period last year. The top five source countries were China with 133 investors and 38.603 billion baht, the United States with 121 investors and 6.226 billion baht, Singapore with 97 investors and 61.112 billion baht, Japan with 94 investors and 45.085 billion baht, and Hong Kong with 72 investors and 14.077 billion baht.

Banpu Public Company Limited reported first-half 2026 results with total sales revenue of 2,778 million US dollars, equivalent to 89,222 million baht. Earnings before interest, tax, depreciation and amortisation were 596 million US dollars, and net profit from operations was 61 million US dollars, supported by higher natural gas sales volumes in the United States and rising global coal prices. The amalgamation with Banpu Power Public Company Limited was completed on 31 July 2026, and BANPU shares began trading on the Stock Exchange of Thailand on 4 August 2026. The integrated natural gas business in the United States recorded sales of 172 billion cubic feet, up from the previous year. The modern mining business sold a total of 18 million tonnes of coal. The power and related business had renewable energy capacity of 1,011 megawatts. The future energy technology business provided Net Zero advisory services to Thai Airport Ground Aviation Services Company Limited. The company also announced an interim dividend of 0.40 baht per share.

Yuanta Securities stated that Banpu Public Company Limited, or BANPU, is likely to see a strong recovery in its second-half 2026 performance. The firm maintains a buy recommendation and a fair price of 19.00 baht. Analysts forecast a net profit of 6.5 billion baht for 2026 and view the natural gas business in the United States as a key medium-term driver, supported by demand from data centers and artificial intelligence, as well as the expansion of liquefied natural gas production capacity. Additional support comes from an interim dividend for the first half of 2026 of 0.40 baht per share, representing a yield of 2.7 percent. The stock will trade ex-dividend on September 11, with payment on September 25.

Banpu Public Company Limited, or BANPU, reported a net profit for the second quarter of 2026 before business combination of 1.6 billion baht, swinging from a loss of 945 million baht in the second quarter of 2025 and up from a profit of 377 million baht in the first quarter of 2026. The result included a gain on financial instruments of 1.6 billion baht and a foreign exchange gain of 1.5 billion baht. However, excluding extraordinary items, the company posted a normalized loss of 1.5 billion baht. Dao Securities research said the higher profit compared with a year earlier and the previous quarter was mainly due to the consolidation of the Temple I and II gas-fired power plants, and expects the profit trend in the third quarter of 2026 to continue recovering, driven by higher coal prices and seasonally stronger earnings from gas-fired power plants in the United States. Dao Securities maintained its 2026 and 2027 net profit forecasts at 2.4 billion and 2.8 billion baht, respectively, and kept its 2026 target price at 14.80 baht, based on a price-to-book value of 0.53 times.

Bualuang Securities expects robust profit growth for the energy sector in the second quarter of 2026, with core profit for stocks under its coverage totaling 110 billion baht, up 191 percent from a year earlier and 28 percent from the previous quarter. Net profit is projected at 89 billion baht, rising 138 percent year-on-year and 9 percent quarter-on-quarter, supported by high refining margins. The refinery group leads the recovery, while PTT is boosted by its gas, exploration and production, refinery, and petrochemical businesses. PTTEP benefits from higher sales volume and average selling prices, along with lower unit costs, and BANPU gains from strong coal and gas operations. Only OR is expected to see weaker profit due to lower oil sales and marketing margins. The research team has raised its full-year 2026 net profit forecast for the sector by 24 percent to 293 billion baht. For the third quarter of 2026, although profit is still expected to grow year-on-year, it is likely to soften from the previous quarter as energy prices and refining margins begin to decline. This comes as oil supply is set to increase from OPEC+, the UAE, and Iran, coupled with expectations of the reopening of shipping routes through the Strait of Hormuz, while coal prices are trending lower on reduced demand. The research team favors PTT the most in the sector, citing its diversified profit structure across multiple businesses, which delivers strong cash flow and dividends.

US stocks closed at a record high, with the Dow jumping 693.38 points after US-Iran tensions eased, sending WTI crude down over 5% and US Treasury yields lower. Communication services led the rally, surging 4.3%, driven by Meta Platforms and Alphabet, while Amazon climbed 4.6%, pushing its market value past 3 trillion dollars for the first time. In Europe, the STOXX 600 index closed up 0.45%, with aerospace and defense stocks jumping 2.7%. AstraZeneca tumbled 9% on reports of a merger deal worth over 400 billion dollars with Bristol Myers Squibb, dragging the healthcare sector down 1.7%. Asian markets mostly rose this morning, led by South Korea's KOSPI, which gained 1.5% after President Trump called off plans to strike Iran, easing energy supply and inflation concerns. The Thai stock market has a chance to recover, with BANPU resuming trading as a new entity after completing its merger with BPP, aiming to diversify away from coal and expand into data centers and energy storage systems.

BANPU shares began trading on the first day after the merger on August 4, 2026, as Banpu Public Company Limited underwent a major restructuring to fully transition into the clean energy business. Key changes include consolidating the operations of its subsidiary BPP under BANPU to strengthen financial standing and expand its renewable energy investment portfolio. Investors are watching the stock price direction and dividend policy following this restructuring.

BANPU shares resumed trading on the first day after completing its merger with BPP, opening at 15.50 baht, above the fundamental value of 14.50 baht estimated by analysts at Asia Plus Securities. The price hit a high of 15.90 baht before retreating to close the morning session at 15.20 baht. Under the new structure, each existing BANPU share was allotted 0.38242 new BANPU shares, and each existing BPP share was allotted 0.80208 new BANPU shares, along with an interim dividend payment of 0.40 baht per share. The XD date is set for September 11, with dividend payment on September 25. Benefits from the merger are expected to reduce organizational complexity, enhance management agility, and create synergies between the legacy business and the power plant business. Net profit for 2026 to 2027 is projected to rise by around 19 to 22 percent from previous estimates, to 3.6 billion baht and 4.7 billion baht respectively, while the debt-to-equity ratio is expected to remain stable at around 1.8 times.

BANPU resumed trading on its first day and is in the process of seeking approval for a bond issuance of 80 billion baht, along with a proposed interim dividend payment of 0.4 baht per share, with the XD date set for September 11, 2026. The company is poised to return to sustained profitability from 2026 to 2028, driven by its gas and power plant businesses in the United States. Profit margins are rising in line with selling prices, as the company benefits directly from a tightening supply cycle in the US gas market, supported by AI-driven demand and LNG exports. There are also additional opportunities from potential mergers and acquisitions of gas assets or future expansion of gas-fired power plant investments in the US. The US gas market is entering a 10-year recovery cycle, with domestic oversupply expected to decline over the long term as US LNG production and export capacity expands from 2026 to 2030, accumulating over 87 percent, equivalent to 12 percent of US gas supply. This will enable exports to the European Union and Asia, where demand is rising, tightening the domestic market further. Additionally, US gas demand is growing at 1.7 percent, above the global average, driven by electricity needs from data centers, which are expected to expand 2.7 times over the same period. This will provide another significant boost to BANPU's US gas business, keeping profit margins on an upward trend. The company has sufficient liquidity to support capacity expansion. As of the first quarter of 2026, it held approximately 67 billion baht in cash, with an interest-bearing debt to equity ratio of around 1.5 times and a net debt to equity ratio of 0.79 times. Based on existing bond covenants not exceeding 1.75 times, it is estimated that the company can borrow at least an additional 220 billion baht, enough to cover its five-year investment plan of 3 billion US dollars. This includes the Temple III gas-fired power plant project with a capacity of 1,200 megawatts, requiring an investment of approximately 1.2 to 1.8 billion US dollars, as well as opportunities to expand gas asset investments and battery energy storage system projects. The average pre-merger target price for BANPU of 6.4 baht per share would imply a target price for the new company of around 16.7 baht per share, with 60 percent buy, 30 percent hold, and 10 percent sell recommendations.

Banpu Public Company Limited reported first-quarter 2026 results, swinging to a net profit of 1,091.27 million baht from a loss of 369.12 million baht in the same period last year. The turnaround was driven by higher coal prices and increased sales volumes in the modern mining business, along with strong performance from the integrated natural gas business in the United States, where severe cold weather spurred energy demand. The company also booked an unrealized foreign exchange gain of 143 million baht from the depreciation of the baht against the US dollar. Total sales revenue for the quarter came in at 1.34 billion US dollars, or approximately 42.35 billion baht, up 4 percent from a year earlier. The modern mining business contributed 689 million US dollars, accounting for 52 percent of total revenue, while the integrated natural gas business in the United States generated 321 million US dollars, representing 24 percent of total revenue.