SET-listed coal trader Asia Green Energy (AGE) predicts that coal will rebound further in the last quarter of this year and raise the company's revenue substantially as global oil prices continue to rise.
Chief executive Panom Kuansataporn said he expected to see brighter business sentiments for the rest of the year, and probably through next year, as global coal prices have risen to a three-year high of US$97.5 per tonne, reflecting rising demand.
He said the company's sales volume could rise by 10% from the previous year to 2.2 million tonnes this year.
"China and Vietnam have started to import more coal, in line with growing economies. Demand for coal also rises ahead of winter, pushing prices higher," he said.
Coal business was categorised as a sunset industry since prices started to fall over the past several years, before hitting a record low at $46 a tonne in 2013.
Mr Panom said the price of ICE Newcastle coal futures, which sets global trends, has risen 75% so far this year, due to rising demand ahead of winter when several countries are due to import more coal for their power-generating systems.
He added the company's coal sales have started to rise significantly in the second half of this year, especially in the overseas market.
This is in line with the US Energy Information Administration's (EIA) report, which predicted coal would still play a major role in the world's power-generating sector.
According to the EIA report, coal would remain the second-largest energy source worldwide behind petroleum and other liquids until 2030.
From 2030 through 2040, coal would become the third-largest energy source, behind both liquid fuels and natural gas.
World coal consumption will increase from 2012 to 2040 at an average rate of 0.6% per year, from 153 quadrillion British thermal units (BTU) in 2012 to 169 quadrillion BTU in 2020 and to 180 quadrillion BTU in 2040, said the EIA.
Mr Panom said Asia Green Energy has set its coal sales target at 2.2 million tonnes this year, of which around 80% would be overseas sales, while the remaining 20% would be domestic sales.
"According to this assumption, the company's 2016 sales revenue is expected to rise by 10%-15% from last year," he said.
Higher sales at home are due to rising demand from large industrial companies, which need more coal to be used as power source in their production lines, he said. For sales overseas, rising demand has come from China, which needs to stock up power resources ahead of winter, as well as from Vietnam because of its growing economy.
Mr Panom said he is talks with a partner in Vietnam for a business expansion in the country, and expects to finalise the deal by the end of this year.