SET-listed coal trader Asia Green Energy (AGE) expects a 30-35% rise in coal sales next year due to strong demand in Asia.
Assistant managing director Panita Kuansataporn said the company plans to import about 300,000 tonnes of coal early next year from Russia to serve rising demand from China, Vietnam and Taiwan.
"We have sealed contracts to buy some 300,000 tonnes of coal, which is expected to be gradually shipped to Thailand and Vietnam early next year," she said.
The imported coal is for domestic customers, mostly in heavy industries that use coal for feedstock in their plants.
With increasing demand, Ms Panita said the company expects to see total sales this year grow by 10-15% to around 2.2 million tonnes, with growth likely to reach 30-35% next year.
She said a key factor that will support higher sales next year is rising demand ahead of the winter in China, which is coming earlier than expected and is expected to last longer than usual, forcing industries and the power sector to store more coal.
Some 80% of total sales are derived from the domestic market, with exports accounting for the rest. Major customers are China, Vietnam and Taiwan.
"In the future, we expect domestic sales to represent around 70% of total sales, with 30% from exports, which means we need to expand our customer base in the overseas market," Ms Panita said.
Vietnam is a key market the company plans to invest in, she said.
Ms Panita said AGE is seeking a local partner in Vietnam to set up a joint venture, in which the Thai firm would hold a 55% stake and 45% would be held by the partner.
"The plan is due to be completed within the second half of next year," she said, adding the joint venture will help increase the customer base in Vietnam, where demand for coal is expected to rise in the line with the economy.
Higher demand at a time of rising global coal prices is expected to increase the company's revenue, Ms Panita said, though she declined to offer precise figures.
The benchmark ICE Newcastle Coal Futures, which sets global trends, has risen more than 70% so far this year. The price bottomed out at US$49 a tonne early this year before starting to rebound in the second half to hit a peak of $115 during the last quarter.
Ms Panita said global coal prices are expected to remain in the consolidated phase next year, with the price predicted to move in the range of $75-$85 a tonne.
AGE posted a smaller profit in the third quarter, generating 1.34 billion baht in revenue, down by 6.8% year-on-year.
Net profit in the third quarter stood at 17.5 million baht, down by 75% from the same period of 2015 when it posted a net profit of 72.9 million baht.
For the first nine months of this year, the company sold 1.65 million tonnes of coal, with 3.14 billion baht in total revenue, an 11.9% drop from the same period last year when total revenue reached 3.56 billion baht.
Net profit in the period was 60.7 million baht, down 43% from 107 million year-on-year.
AGE shares closed Friday on the Stock of Exchange of Thailand at 1.51 baht, down two satang, in trade worth 1.39 million baht.