SET-listed Banpu Plc, a non-oil energy conglomerate, plans to allocate capital expenditure worth US$3-4 billion over the next five years in line with its move to expand clean energy and energy technology businesses.
The company is also diversifying into the health sector, expected to be a new source of revenue, Somruedee Chaimongkol, chief executive of Banpu, said yesterday.
In the energy sector, Banpu continues to push ahead with renewable power generation projects, new gas exploration, gas-fired power plant projects, electric vehicles as well as new energy technologies.
These businesses are expected to generate more than half of its earnings before interest, tax, depreciation and amortisation (Ebitda) within 2025.
Its coal mining, coal trade and coal-fired power plants will remain as a current source of revenue.
Mrs Somruedee said Banpu is also interested in non-energy businesses, particularly health, so it made an investment worth US$150 million in the US healthcare industry through a US-based healthcare investment fund.
The company invested as a founding limited partner.
The next step is to divide the investment budget -- 80% to go to health companies listed on the US stock market and the remaining 20% to other firms, said Mrs Somruedee.
The company allocated $1.3 billion worth of capital spending for this year. Up to $930 million will be spent to acquire new energy assets, support energy-related projects and invest in the health business.
Kirana Limpaphayom, chief executive of Banpu Power, a subsidiary of Banpu, said Banpu Power is currently conducting a due diligence review of a plan to acquire a new gas-fired power plant in the US and a renewable power facility in Vietnam.
More details of the purchases will be unveiled within the third quarter.
Mr Kirana said the expansion of gas business in the US will add value to Banpu's Marcellus shale field in Pennsylvania, Barnett shale field in Texas as well as Temple 1 gas-fired power plant in Texas.
