Banpu CEO Generation 3 leads with Growth Mindset concept

“Banpu aims to be a major player in the energy industry, with environmental responsibility. In the future, new businesses such as hydrogen energy, nuclear energy, and batteries will emerge.”

Banpu Public Company Limited (BANPU) at the age of 42 has Sinont Vongkusolkit at the age of 35 as the Chief Executive Officer or CEO leading the organization into the future in the 5th decade after being trusted by the board of directors to take over the CEO baton from Somruedee Chaimongkol in April 2567 after cultivating experience working in the Banpu Group for 10 years.

Sinon is the son of Chanin Wongkusolkit The company was founded by the Euapinyakul family and was the first CEO. At that time, the company was called Banpu Mining Co., Ltd., which started from the mining business by subleasing coal mining at Banpu Mine (BP-1), Li District, Lamphun Province from the Department of Alternative Energy Development and Energy Conservation.

Today, Banpu is a diversified international energy leader with operations in Thailand, Indonesia, China, Australia, Laos, Mongolia, Japan, the United States, and Vietnam. It has three core business groups: Energy Resources (coal and natural gas, including related businesses such as marketing, trading, logistics, fuel procurement, and transmission), Power Generation (power plants from conventional fuels and renewable energy), and Energy Technology (integrated solar power generation systems, energy storage systems, and energy technology management systems).

Focus on the “energy” path
Participate in strategic planning for organizational transformation

Sinin graduated with a Bachelor's degree in Business and Marketing Management from Oxford Brookes University, England and a Master's degree in Global Management pathway in Finance and Business Development from Regent's University. After graduating, he headed back to Thailand to step into the Banpu empire, starting work in 2557.

“The work I am responsible for is a variety of strategic management work, including finance, investment, international project management, and participation in important strategic projects, including financial and asset decisions, business portfolio management to grow according to the Greener & Smarter strategy, and being a key force in driving the organizational transformation of Banpu Group or Banpu Transformation.” Sinont tells bank finance Hear about the path to becoming CEO of Banpu

Before being entrusted by the Banpu board to hold the position of CEO, Sinin had approximately 5-7 years of experience in managing the company's finance, investment, and international project management, overseeing the company's financial analysis, bond issuance, capital structure, and fundraising.

From the CEO of Banpu NEXT
To the big house BANPU

At the beginning of the Greener & Smarter strategy, Sinont said that he began to see opportunities to change the business in a greener direction, so he invested in solar farm businesses in Japan, China, and Australia, etc., and invested in natural gas businesses in the United States. After gaining experience for some time, he became the Chief Executive Officer and Director of Banpu Next Company Limited for about 2 years.

Banpu NEXT is a leading clean energy solutions provider in Asia-Pacific, committed to supporting a carbon-free society in the future. It consists of 5 business groups: Renewable Energy, Battery, Power Trading, E-Mobility, and Smart City Development and Energy Management.

It is also committed to being a “Net-Zero Solutions Provider” for all organizations in the Asia-Pacific region, offering “Total Smart Energy Solutions” from design, planning, installation, consultation at every step by experts, including after-sales service, taking care of customers professionally 24 hours a day, with a digital platform and application that helps customers manage their energy use easily and in real time.

Promote the concept Growth mindset
Focus on 3 main goals

Back to the present, Sinin, as CEO of Banpu, aims to make the company look new in terms of energy and technology with the concept of Growth Mindset that aims to move forward in order to keep up with the changing business world and energy trends in the future.

“After assuming the position of CEO of Banpu, I feel challenged in my work. My current duty is to create a new work plan. I have to make the company continue in a world that is constantly changing because it is in the broad energy business.”

 Sinon explained that the new roles and responsibilities of the work are one of the challenges. The goal of the work from now on is to see Banpu's new strategy reflecting its commitment to being a leader in the energy transition with responsibility and sustainability, focusing on 3 main goals: Energy security It is the provision of reliable and continuous energy. Energy Equality It is the provision of energy at a reasonable price and Energy Sustainability It is the supply of energy that reduces the impact on the environment.

Banpu’s strategy focuses on maintaining balance and responding to the 3 energy challenges (Energy Trilemma), which is an approach to integrate various energies to create new sustainable energy solutions that respond to the world’s increasing energy demand while taking care of the planet. It is committed to creating new standards for continuous energy use. The new strategy has 4 important missions as follows:

1. 1. Aim to achieve Net Zero by 2050, reduce greenhouse gas emissions by no less than 20%, and reduce the proportion of earnings before interest, taxes, depreciation and amortization (EBITDA) from coal-related businesses to less than 50% by 2030.
   2. Our Natural Gas, Natural Gas Power and Carbon Capture, Utilization and Sequestration (CCUS) businesses are focused on growth with a “path to success” that integrates our upstream natural gas, natural gas power and CCUS businesses to deliver low-carbon natural gas solutions in the United States while generating strong cash flows.
   3. Accelerate the expansion of renewable energy business across Asia-Pacific and beyond by investing in Battery Energy Storage System (BESS), related downstream businesses and carbon businesses to ensure the continuity of renewable energy and add value to the business.
   4. Develop and implement smart mining strategies by integrating intelligent solutions and artificial intelligence (AI) into mining processes to increase efficiency, reduce costs and minimize environmental impact, including investing in future minerals critical to the energy transition.

Currently, Banpu Group has applied AI technology to its mining business in Indonesia, starting with reducing the cost of using EVs and deploying a digital team to handle coal transportation. It has also applied AI to Banpu NEXT’s business. In addition, it is studying the adjustment of customers’ logistics routes to reduce travel costs and applying it to the human resources department, as well as 4-5 other projects that are developing AI systems, expecting AI to reduce costs and increase the company’s efficiency.

The future of the “coal” mining business
Which way to go?

Sinont talked about the coal mining business, which is Banpu's main business. Currently, the main coal mining businesses are in China, Indonesia and Australia, with a production capacity of 40 million tons per year. They can manage commodity prices. In years when the price is good, the company's profits increase. In 2022, when the coal price is good, the company was able to achieve its highest sales in history. Coal is still in use all the time, both in Asia, which needs low energy prices and international competition in electricity prices. Therefore, if the business is done well, there will be sufficient profits and it will be returned to shareholders.

 Banpu targets EBITDA in 2030 to increase by 2023 times from 1.5, while currently, revenue from coal mining business is 60%, power business is 20%, and gas business is 20%, and aims for non-coal business to account for more than 50% in the future, and aims to become a fully integrated and sustainable energy company.

Sinont emphasized that “Energy Symphonics”, Banpu’s new strategy, is to drive the business towards 2030, emphasizing sustainable energy transition, conveying the approach of integrating various energies to create new sustainable energy solutions that respond to the world’s increasing energy demand while taking care of the planet.

“The new strategy, Energy Symphonics, will transform Banpu, but will still focus on CASH COW as the main principle to return returns to investors. We will work hard. Although the Thai capital market is not very good, Banpu will definitely not abandon shareholders.”

Challenges-Goals in Business

Sinont believes that the change in world leaders such as US President Donald Trump is something that needs to be watched all the time. The challenge is how to update policies before others because if we wait for policies to come out and then manage them, it would be too slow. We need to be quick in making plans to support the policies that will occur and make decisions accurately and quickly.

For the energy business challenge, we see that we need to turn energy into greener energy with good enough returns. That is the main reason why Banpu invested in natural gas business, battery business, energy storage business and battery farm business which will be a big portfolio of Banpu in the future.

In the short term, in 2030, we aim to reduce Banpu's debt. In the long term, we want to make the company balance its businesses, aiming to be a key player in the energy industry, and be environmentally responsible. In the future, new businesses such as hydrogen energy, nuclear energy, and batteries will emerge, which have the potential to grow in the future.

Hydrogen-Nuclear Energy Perspective

In the hydrogen energy business, China is currently able to produce green hydrogen at a low cost. Low electricity prices allow hydrogen production and the demand for use, such as power plants, automobiles, and other businesses, must wait and see the needs of various business groups. Currently, the demand for hydrogen in Japan, which wants to develop its business to be more green,

Nuclear energy is another interesting business. Currently, it exists in China, Russia, and the United States, where it is possible to control where nuclear power plants can be set up. As for the battery business, there are many important technologies involved. It is seen as another business with a long future, being in the correct supply chain.

 Principles of People Management
 “Be the right person for the job you love.”

When talking about the principles of people management, Sinnont compared it to playing football, which requires understanding of the correct position. The same goes for work. If we have to hire people and need to spend time training them, it may be a waste of time and not up to date with the situation. Currently, Banpu has hired many people related to new businesses, such as battery businesses, hydrogen businesses, etc.

 “My working principle is comparable to a football team, using the principle of “being the right person in the right job.” You can’t always bring defenders into the forward’s game. Everyone on the team needs to know what their role is in which position. The team’s plan must be clear, and the players must have the same chemistry.”

For the 2568 plan, Banpu organizes its personnel into 3 levels:

• • Level 1 – Mining business, energy business, both M&A and acquisitions, analysis must have correct information.
  • Level 2 – Add Level 1 personnel in mining and energy businesses.
  • Level 3 – New businesses such as batteries, hydrogen, data centers, carbon require new personnel to drive the business in an integrated manner.

The 3rd generation CEO of Banpu concluded that Banpu Group's business still needs new ideas from employees and specific expertise. Banpu employees have good Culture Fit and can work together. Currently, the Group has 6,000 employees in 9 countries who work together to support each other.

“I aim to revamp the company in terms of energy and technology, with a growth mindset that is forward-looking, in order to keep up with the changing business world and energy trends in the future.”

Follow and read other columns in the March 2568 Bank Finance Journal, Issue 515, in digital format: https://goo.gl/U6OnIi

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