As part of its results commentary, Banpu said Centennial had strong sales volume of 3.66 million tonnes in the recent quarter.

The average sales price of $A65.97 a tonne ($US52.62/t) was 13% lower year-on-year but Banpu remained positive about its Australian coal business.

“The coal selling prices for Australia have been able to withstand market pressure relatively well due to strong domestic sales contracts that provide a cushion against easing export prices,” Banpu said.

Banpu also gave credit to Centennial for its “effective cost reduction program” and said strong productivity helped control Centennial’s cost of sales to an average of $A46.26/t ($US36.9/t).

This price helped sustain Centennial’s gross profit margin at 30%, Banpu said.

However, when other costs are taken into account this effectively gave Centennial Coal a $19.5 million net loss for the March quarter, putting further pressure on management to achieve savings as thermal coal prices continue to struggle.

Overall Banpu clocked up a $US2 million consolidated net profit for the recent quarter with the Indonesian coal mines maintaining a 37% GPM while its coal-fired power plant division benefited from cheaper thermal coal prices.